2020-12-31-accounts

The Society of Dyers & Colourists (SDC) Annual Report &

Financial Statements

For the Year ended 31[st] December 2020

Charity Number 212331 Royal Charter Number RC000567

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Contents

Foreword by SDC Chief Executive Officer	1
SDC Annual Report
Honorary Officers	2
Trustees	2
Co-opted Board Members	2
Chief Executive Officer	2
Principal Office	2
Auditors	2
Bankers	2
Investment Managers	2
Governance	3
Charitable Objectives	3
Structure and Governance	3
SDC Performance	5
The SDC Trading Companies	6
Charity Financial Activity	6
Reserves Policy	8
Project development 2020	8
Review of Activities	9
Investment Policy	16
Fundraising	16
Risk Assessment	17
Human Resources and Equality, Diversity and Discrimination Policy	17
Data security	17
EU GDPR	17
Health and Safety	17
UK Pension Auto-enrolment	18
Remuneration Policy	18
Statement of Trustee's Responsibilities’	18
Independent Auditors Report	19
Consolidated Statement of Financial Activities	22
Charity Statement of Financial Activities	23
Consolidated Balance Sheet	24
Charity Balance Sheet	25
Consolidated Statement of Cash Flows	26
Notes to the Financial Statements	27
Non-statutory pages	47

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report

Foreword by SDC Chief Executive Officer

There was an intention, when the 2019 Annual Report was completed, to change the format of the Annual Report for 2020. The aim was to achieve a reduction in the length of the Report, and by doing so focus more on what had been achieved over the past year and where the Society was heading in the future. At that time, we could not foresee the extent to which 2020 was going to be a very different kind of year. It started almost normally – I say almost as we were aware of a new disease in the Far East that appeared to be spreading at a fast rate. However, in March 2020 the SDC President at that point, Sue Bolton, and myself were intending to travel to the USA to attend the AATCC Annual Conference in Greenville, South Carolina (an event held each year and attended by the SDC for many, many years). We undertook a risk assessment before we departed the UK, and the decision was still to attend. However, the speed of the pandemic then swung rapidly around the globe in a manner none of us envisaged, which resulted in our early and hurried departure back to the UK. On 15th March 2020, as SDC Chief Executive, I took the decision to close Perkin House to all SDC staff and visitors and so we entered an exceptionally different year in the whole history of the Society.

During the remainder of the year things have been very different with staff working from home and all Board and Committee meetings moving online. This has not been a negative experience, with many upsides, as well as a webinar programme introduced with astounding international participation each time. Our education courses were already online, and both delivery and participation continued unabated. One might also argue we became much more efficient, with shorter meetings and no travel to attend them. This of course did not just happen, but was made possible because SDC Members and SDC Staff made an effort and tried new ways of working, for which I am very grateful indeed. Collectively the Society continued in a very turbulent and very uncertain year. Some use of Perkin House returned as the year progressed, but in the main all SDC desk-based staff continued to work from home using the integrated IT solution of Microsoft Teams and the Office 365 suite. Being apart actually resulted in SDC staff meetings online, at a frequency of approximately two per week, which is an increase in SDC team working hitherto unknown.

Whilst the Annual Report covers a specific year it also looks ahead to where the organisation is heading. It is in this area that the Society was impacted much more than in 2020, due to the international downturn in trade affecting the Gift Aid the Society will receive from the 2020 trading of our subsidiary SDC Enterprises Group Ltd. Fortunately, this is a situation where the Society has had 9 months' notice that the 2020 Gift Aid, typically received the following September, will not be forthcoming. Unfortunately, that has resulted in the Society’s Board having to make some hard decisions regarding the sustainability of the organisation. In April 2021 therefore the Society, to reduce its expenditure commitment to a more sustainable level, was forced to make four staff posts redundant. This has only in part addressed the shortfall in income and 2021 at least will see a zero-travel expenditure policy across the SDC for example. A comprehensive spending review is underway to reduce expenditure wherever possible without impacting the delivery of membership and educational services. Indeed, the reduction in staff numbers is a move accompanied by outsourcing of SDC Marketing, adding this to the long-standing list of outsourced functions such as HR, Bookkeeping and IT support.

In summary 2020 was not the year we envisaged and 2021 will be different again, as will the SDC future. I say different as the changes can be said to be positive ones. The pace of change has been exacerbated by the pandemic and this is certainly true for the Society. I recall more than a single committee meeting in 2020 where we left the meeting and the world had changed during the time we had met! The changes will result in a different Society addressing the current colour world in which we live, but a Society that still exists and serves its members and its colour communities.

I would like to conclude my introduction to this year’s Annual Report with our condolences for all who have lost friends and loved ones in the past year. Some of these have been as a direct consequence of the pandemic, whilst others have passed away from other causes, but in a time when grieving and mourning are much more difficult. Sadly, one such loss, not though caused by the pandemic, was the passing of a serving Trustee of the Society’s Board. Trevor Lambourne was a welcome addition to the Society’s Board in 2015 and known to myself as a work colleague from 2004 when I was employed at the University of Leeds. Many have benefitted from the work Trevor undertook for the Society both collectively and personally. He will be, and is, missed by those in the Society who knew him and who will remember him with grateful hearts. May all those who lost someone over recent months never forget the great influence and impact those individuals contributed to our lives.

Dr Graham Clayton, Chief Executive Officer

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

SDC Annual Report

The Society’s Board is comprised of nine elected trustees from amongst its Voting Member population, SDC Honorary Officers and the Chief Executive Officer, together with any co-opted Board members, who present their report together with the financial statements of the charity for the year ended 31 December 2020. The Board are of the view that the funds and assets have been prudently managed and effectively applied during the year, solely in furtherance of the objectives described in the SDC Governance documents and reproduced below, with financial performance continually under review against these, with monthly management accounts produced and evaluated. The Board are satisfied that the financial policies and plans presently being applied are relevant, appropriate, and adequate to support and sustain the charitable activities of the SDC.

Honorary Officers

President Susan Bolton (Retired AGM 2020) President John Hansford (Appointed AGM 2020) Immediate Past President Stephen Westland (from AGM 2019 until AGM 2020) Immediate Past President Susan Bolton (from AGM 2020) President-elect Ullhas Nimkar (Appointed AGM 2020) Honorary Secretary Stuart Wilkinson (Appointed AGM 2018 until AGM 2021) Honorary Treasurer John Hansford (Appointed AGM’s 2015 through 2019) Honorary Treasurer Deborah Bamford (Appointed AGM 2020 until AGM 2021)

Trustees

Deborah Bamford - retired by rotation AGM 2020 Chris Carr – appointed at the AGM 2018 and retires by rotation AGM 2021 Trevor Lambourne – retired by rotation AGM 2020 and re-appointed AGM 2020[1] Ian Lewis - retired by rotation AGM 2020 and re-appointed until AGM 2023 Paul Hamilton - retired by rotation AGM 2019 and re-appointed until AGM 2022 Spike Ngai - retired by rotation AGM 2019 and re-appointed until AGM 2022 Adam Pursell – appointed at the AGM 2019 and retires by rotation AGM 2022 Geoff Rudkin - retired by rotation AGM 2020 Gavin Thatcher – appointed at the AGM 2018 and retires by rotation AGM 2021 Katherine Wells – appointed at the AGM 2020 and retires by rotation AGM 2023 Parik Goswami – appointed at the AGM 2020 and retires by rotation AGM 2023

1 Trevor Lambourne sadly passed away in April 2021 leaving a Trustee vacancy on the Society’s Board.

Co-opted Board Members

During 2018 the Society’s Board appointed Trevor Larkins as Co-opted Board Member in his role as Chair of the Projects Evaluation Group (PEG). In 2019 the role was made one of Vice-President (Projects) by the Board and Trevor Larkins continued to serve on the Society’s Board during 2020.

Due to a delayed AGM as a result of the pandemic in 2020 Dr Parik Goswami and Dr Katherine Wells were co-opted to the Society’s Board from May 2020 until their appointment as Trustees at the July 2020 Annual General Meeting.

Chief Executive Officer

Graham Clayton

Principal Office

Perkin House, Longlands Street, Bradford, BD1 2LU

Auditors

Watson Buckle Limited, York House, Cottingley Business Park, Bradford, BD16 1PE

Bankers

National Westminster Bank plc, 1 Market Street, Bradford, BD1 1EG

Investment Managers

Brewin Dolphin Securities Limited, 10 Wellington Place, Leeds, LS1 4AN

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Governance

The SDC is a charitable body, incorporated by Royal Charter (RC000567) with the governing documents being the Royal Charter (1963) with Amendments, By-laws (2009) and Rules (2012 as amended 2014, 2015, 2016, 2017, 2018 & 2019). These documents are available for public access on the SDC website.

Charitable Objectives

The SDC was established in 1884 to advance the science of colour. The SDC achieves this aim by global dissemination of colour knowledge to members, industry and the public, via publications of scientific papers, lectures and e-media. The charitable objectives are contained within the Royal Charter of 1963 and are:

• a) To promote the advancement of technology both in the theory and in the practice of the creation and use of colour and colouring matters

• b) To provide means for the wider dissemination and interchange of knowledge concerning the science and technology of colour and colouring matters including knowledge of the application to substrates and of the materials to which they may be applied

• c) To encourage education and research in all and any subjects concerned with the science of colour

• d) To hold meetings for the reading of papers and giving of lectures on coloration and colouring matters and for discussion of the same

• e) To publish scientific literature and a monthly journal for the promotion and correlation of knowledge of the science of colour

• f) To initiate and stimulate research and education in the interests of coloration in all aspects of human life

• g) To co-operate with other scientific organisations and bodies in relation to colour and its application and use h) To acquire by purchase, devise, bequest, donation or otherwise lands and hereditaments of any description and tenure and to accept any gift, endowment or bequest and the office of trustee and to carry out any trusts attached to any such gift, endowment or bequest or attached to such office

• i) To do all such lawful things as are incidental or conducive to the attainment of the above objects or any of them.

Structure and Governance

The Society’s Board is the Governing Body of the Charity with up to nine trustees elected from among the Voting Members of the Society by the Voting Members (Rule 101). The Chief Executive Officer, the Honorary Treasurer and the Honorary Secretary are also entitled to attend meetings of the Board (By-law 36.2), which may also co-opt a maximum of three members (Rule 104 & By-law 36.2). Only trustees take part in any vote of the Board, a quorum of which is 50% of the voting members, rounded up to the nearest whole number present either in person or electronically in real time (Rule 115).

The Governance of the SDC, is evaluated against independent Governance standards and since October 2018 the SDC has achieved the Charity Excellence Quality Mark. This Quality Mark is based on the UK Charity Commission’s Good Governance Code.

The Audit Committee comprises (By-law 37) the Honorary Secretary, the Honorary Treasurer, the President, the President-elect, the Immediate Past President and four elected Voting Members of the Society (Rule 125). It reports to the Society’s Board and monitors legal compliance of all activities related to the Royal Charter, By-laws, SDC Rules, agreed policies and strategies.

The Nominations Committee (By-law 38 & Rule 126) comprises the Chair of the Society’s Board, the Honorary Secretary, the Honorary Treasurer and Voting Members representing UK members, members from outside the UK, the Committees and the Regions. The Nominations Committee also ensures the procedure for the appointment of Trustees, Honorary Officers and members of the Audit and Nominations Committees is rigorous and transparent (Rule 126).

The finances of the SDC are the responsibility of the Society’s Board (Rule 47) and the Board appoints a Finance Committee, chaired by the Honorary Treasurer, to manage the SDC’s finances (Rule 48). The composition of the Finance Committee and its appointment is made annually by the Board (Rule 49) at their first full meeting after the AGM.

The SDC’s other committees report to the Society’s Board and the Chief Executive Officer and develop, direct and monitor the charity's activities in accordance with its’ Charitable Objectives. The SDC’s day-to-day operational activity is managed by the Chief Executive Officer with a complement of appropriately skilled staff and external service providers under the CEO’s management.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

The Society’s Board are advised of their responsibilities under charity and company law, the requirements of the Royal Charter, By-laws and SDC Rules. Formal training of the Board members, Audit Committee, Nominations Committee and those standing for election is made available at least annually, with attendance recorded. This training is delivered by experts in their field who also have wide experience in the charity sector. In 2020 the move was made to make this available via the SDC’s own Virtual Learning platform Colour.Network so Board and Committee members can access this training at any time and progress at their own rate and in their own available time. In 2020 seven Board members and five members of SDC Staff undertook the online Governance training course.

The following comprise the Chair of the Society’s Board and Chairs of Committees:

• The Board – Chair Gavin Thatcher. In 2020 the Society’s Board met on 11 occasions.

• Audit Committee – Chair Stuart Wilkinson. In 2020 the Audit Committee met on 6 occasions plus a joint meeting with the Finance Committee to review the Annual Accounts.

• Finance Committee – Chair John Hansford until AGM 2020 and then Debbie Bamford. In 2020 the Finance Committee met on 6 occasions plus a joint meeting with the Audit Committee to review the Annual Accounts.

• Nominations Committee – Chair Stuart Wilkinson. In 2020 the Nominations Committee met on 3 occasions.

• Medals Committee – Chair Stuart Wilkinson. In 2020 the Medals committee met on 1 occasion.

• Examinations, Qualifications and Accreditation Board – Chair Roger Wardman. In 2020 EQAB met on 4 occasions plus an examination board meeting.

• Publications Committee – Chair John Easton. In 2020 the Publications Committee met on 2 occasions.

• Publications Award Committee – Chair Kelvin Tapley. This committee reviews all papers published in the year by Coloration Technology resulting in a single meeting with a huge amount of preparation in reading every paper published that year.

• Colour Index Pigment and Solvent Dyes Technical Board. Chair Adrian Abel. In 2020 the CIPSDTB met 3 occasions.

It is very much appreciated, and here recognised, that these committees operate due to the substantial input of volunteers, and of course in 2020 required them to adapt and learn new online meeting skills. There are several measures that could be used to report volunteer input to the Society, but which all generalise the volunteer input to some extent. The number of volunteers on committees alone (the SDC Teams facility serves 83 unique users, which includes SDC Staff) conceals the fact that more than a few volunteers are on several different committees. The number of committee meetings above conceals the duration of the volunteer input with preparation as well as the meetings themselves. In 2020 of course committee meetings moved online thus reducing volunteers time to perform their duties with many no longer travelling large distances in order to attend meetings. This has positive environmental as well as financial impacts, plus is beneficial for the wellbeing of volunteers undertaking their tasks.

This narrative on volunteer input has also thus far erroneously focused on the main SDC Governance Committees and coverage here would not be complete without also including the regional volunteers who manage their Region and arrange and deliver regional events. The SDC has eight member-based regions (Northern England, Midlands, London, Hong Kong, Bangladesh, India, Pakistan, & Sri Lanka).

A conservative estimate of the combined hours of volunteer input of the above just in actual meetings is over 1,500 hours per annum, or around 40 person weeks of work. This estimate does not include preparation time which will vary by volunteer role, but it is probable that the volunteer input time could be two or three times the conservative estimate.

Regional AGMs

The Society’s Rule 55 states that: “Regions, or Student Section, where it has no parent Region, shall submit a statement of accounts to the Chief Executive Officer at least one week before the Society’s Annual General Meeting. These will be presented to the Society’s Board at the first meeting after the Annual General Meeting.” This has not been adhered to for many years, but the Governance of the Society is making progress on getting this schedule reinstated. Regions have held their own AGMs and provided a Statement of Accounts but at different times across the year. Effort made in 2020 to deliver a much more in line with the Society’s Rules response has been thwarted by the international Corona virus pandemic. Work will continue to ensure this section of the Annual Report is complete with region and reporting date but once again the duration of the impact of the pandemic was not foreseen and in many countries it continues to have severe impact and will do so until the close of 2021 at least.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

SDC Performance

Mission

Educating the world in the science of colour.

Objectives

The objectives of the SDC for 2020 were to:

1) To Educate in the field of colour and the science of coloration

2) To Focus the SDC activity on a Lifelong Learning Colour Education Pathway for SDC members and the wider colour community, whilst developing the SDC Communities strand of the long-term strategy

3) To Include all staff, members, collaborators and interested parties as appropriate in the SDC Lifelong Learning Colour Education Pathway and SDC Communities

4) To Increase the reach of the SDC to deliver its’ services to a wide Lifelong Learning Colour Education Pathway and SDC Community globally

5) To Build and deliver a sustainable business model – growing in a focused and efficient manner – that ensures the future availability of SDC resources.

The Objectives of the Society are reviewed annually. Informed by ongoing Governance Training, the Society Objectives for the year are kept in agreement with the Royal Charter Objectives. The reader will gain from this report the understanding that these Objectives are still in progress and recognise that substantial achievements have been made towards them in 2020. In the first quarter of 2020 a new international challenge arose in the Corona virus pandemic. Given the move over recent years to online colour education by the Society, it was well placed to survive the crisis in terms of activity and has strong financial reserves to continue. The SDC saw the launch in May 2020 of the SDC Webinar series, which was extremely well attended by individuals from around the globe. This addresses the Royal Charter Objectives as well as the operational Objectives. There is much talk still of what the ‘new normal’ might look like but clearly the SDC Webinar series that is ‘educating the world in the science of colour’ will continue. The SDC business plan is unchanged by the pandemic, although the tactics used to deliver it have had to adapt. In December 2020 the Society’s Board asked the SDC President, John Hansford, to set up a Current Environment Mitigation (CEM) Group that would also move on to look at the Future World of the Society. The Future World Group will be consulting with members around the world to inform the SDC activity and business plan for 2022 onwards.

Public benefit

The SDC public benefit arises from a wide range of events and activities provided for the public to gain greater knowledge through education in the science of colour:

• The SDC website and associated Knowledge Vault, plus the SDC Virtual Learning Platform Colour.Network

• Bursaries and grants

• Lectures, seminars / webinars and conference presentations on colour

• Colour training courses

• Colour products such as the STEM (Science, Technology, Engineering & Mathematics) Dyes kit

• Provision of the Secretariat to the BSI (British Standards Institution) Technical Committee, TCI 81, for Colour fastness and colour measurement of textiles, thus supporting all industries for colour and textiles

• Supporting the provision of the Secretariat for the International Standards Organisation Technical Committee, ISO TC 38 SC1, for Coloured textiles and Colorants, for global standardisation.

• The SDC also has representation on a number of other international technical committees relating to colour and these are covered in more detail later in this report.

The SDC provides benefit to both the public and to its’ members. The Society’s Board confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. The public benefit has also been a feature of trustee and interested party training on governance provided by a charity governance lawyer and a charity accountant.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

The SDC Trading Companies

SDC Enterprises Limited

The consolidated results of SDC Enterprises Group - SDCEG (incorporating SDCE Enterprises Limited (SDCE) and Sam Weller & Sons Limited (SW)) show the largest numerical and percentage reduction in revenue since 2004. Combined revenue fell by 24%. Covid disruption was severe for Sam Weller, in both UK and overseas markets. Whilst Enterprises fared better, periodic shutdowns in major export markets, combined with shipping difficulties, hit sales from the end of February 2020, onwards. In the context of World macro-economics, as a result of the global pandemic, and the severe impact on many industries SDCE results are very robust. The quality and brand reputation, built over many years, proved resilient in the face of exceptional challenges.

Significant, and rapid, fluctuations in trade, limited excess production capacity, and a desire to continue serving those markets that were still operating, meant that SDCEG were unable to mothball operations and take full advantage of UK Government Covid support. Despite great flexibility on the part of staff (varying employment contracts; accepting shutdown holidays at short notice; and agreeing to short-time working) and a period of furlough, it was necessary to reduce costs through a redundancy programme, accounting for 19% of staff numbers.

The sharp fall in net profits, down 76% on 2019, and the additional uncertainty surrounding future profits has led, as for many organisations, to a review of strategy and future plans. Whilst the exact details are now under review, the Board of SDCE have agreed that, to secure a long-term future of the company and hence the Society’s ongoing return on investment, re-investment is more necessary than ever. To fund this re-investment, provide sufficient liquidity for regrowth, and retain the potential to seize any acquisitive opportunities market circumstances may provide, retention of the reduced 2020 profits will be required. This has meant, for the first time in 18 years, SDCE took the difficult decision to provide the Society with no Gift Aid.

Disruption to trade is expected to continue until at least the 3rd quarter 2021 and matching up any growing demand with re-instating production capacity, and costs, will be a difficult balance to judge. Whilst specific actions may have to be deferred SDCEG will continue to seek to implement its agreed long-term strategy of investment securing both the company’s future and delivering a healthy, yet realistic, return to the Society on its investment.

Mark Yare April 2021

SDC International Ltd

The SDC wholly owned company, SDC International Ltd has Directors appointed by The Society’s Board who are the post holders of the roles of Honorary Treasurer, CEO and ASEAN Region Manager.

SDC International Ltd started activity in late 2016. The subsidiary has a UK Bank account with the NatWest Bank plc. The Indian authorities now recognize SDC International India Pvt Ltd as a legal entity with an Indian bank account and taxation registration. SDC membership payments in India are now made to the SDC, with an option of payment through SDC International. SDC International activity was severely curtailed in 2020 due to the pandemic and activity was principally online with training courses and support to the Indian region.

Charity Financial Activity

The Society’s Board monitored monthly the financial activities of the charity in 2020 via the Finance Committee Management Accounts. These reports compare actual results with the approved budget and prior year. The Finance Committee and Board take appropriate action as necessary.

Over the year 2020 the Charity’s net movement in funds was substantial, primarily due to an audit requirement for the annual revaluation of the Perkin House asset, the outcome of which is based on market prices. However, the year did start and end with the same Perkin House asset irrespective of its value.

The Charity net movement of funds was up by £540,015 overall, whilst the consolidated balance sheet saw a net movement of funds upwards by £676,515. For the consolidated Group, incoming resources for 2020 dipped by over £1.4 million (22% of total 2019 income) whilst expenditure dipped by a lesser amount of £766,525 (15% of 2019 expenditure levels). At a Charity only level, expenditure dropped by 6% (ie £57,324) whilst income rose 6% (ie £63,247). Charity finance investments, managed by Brewin Dolphin, that saw losses of £87,540 in 2018 turned to gains of £101,294 in 2019, but 2020 was a turbulent year. The end of Q1 2020 saw huge investment losses as stock markets fell around the world as the Covid pandemic spread, but by the end of 2020 the investment portfolio was in showing a growth of £10,877. The revaluation of the SDC property also resulted in an accounting in-year net gain of £102,752 in investment property for the Charity alone.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

The investments managed by Brewin Dolphin come under their specific charity team and the SDC portfolio will typically have 55% exposed to equities, 26.5% to fixed interest, 14% to alternative investments and 4.5% to cash. A portfolio which is managed at Risk Category 5 is likely to have moderate market volatility. The Charity's investment assets are invested in line with its aims. The Investment Managers are aware the Trustees do not wish to adopt an exclusionary policy, but individual investments may be excluded if perceived to conflict with the Charity's purpose. The outlook for investments in 2021 is positive although with dividends expected to be lower than recent years. The investment objective of the SDC with Brewin Dolphin managed funds remains unchanged however:

“The trustees view the portfolio over the long-term and see the portfolio as providing a 'safety net' against any unforeseen costs. With that in mind the trustees are concerned with growing the invested assets ahead of inflation so that they retain their real buying power. The trustees would also like the portfolio to produce an income to assist in the smoothing of the charities annual cash flow.”

The SDC utilises Sage 50C Professional accounting, a software tool the SDC ensures is updated with new releases to enhance functionality and ensure data security. From early 2020 the Management accounts production undertaken by the Honorary Treasurer has also been moved in-house, streamlining the production and lessening the burden on demanding voluntary posts.

Perkin House rental income rose from mid-2015, with rental income to the SDC rising to £55,657 in 2019. The effect of the Corona virus pandemic on small businesses and charities had little impact on rental income in 2020 with income via this route rising by a further 12% to £62,161.

Membership income was effectively static in 2017 after several years of gradual decline, but with annual price rises agreed three years ahead of implementation, in 2018 membership income rose 7% to £41,156; in 2019 membership income rose by almost 10% to £45,042; and in 2020 it rose but just by 2% to £46,039.

Academic books sales were down 70% to just £755 in 2019 and 2020 was a similar year with just £1,065 of SDC book sale income. The aged book stock is now a very small income stream to the SDC, and the new titles are all produced and sold via Wiley Publishing (see the Publications section of this report).

Malcolm the Weaver titles bounced back in 2018 when sales income just over doubled year on year to £16,255. 2019 saw another fall though to just £946 of income from sponsorships. The Corona virus pandemic was expected to have a large impact in this area of optional sponsorship spend by companies and 2020 ended with just £1,095 of income. However, no new stock or titles were added in year.

In 2019 operational costs rose by some £38,000 which was attributable to a total repainting of wooden framed windows in Perkin House and long overdue replacement of two very large rotted wooden framed windows in stairwells, hence several metres in height each. In 2020 operational costs fell back from 2019 by £42,377, hence by slightly more than the one-off expenditures in 2019.

The total salary costs of the charity (including social security costs and pensions) rose by 6% in 2020. Pension costs were slightly lower compared to the prior year for the charity and for the group. Overall group total salary costs reduced by 9% as staff numbers reduced by 3.

The SDC Finance Committee undertook a periodical review of investment strategy with the SDC investment managers Brewin Dolphin in April 2019. The investment market performance in 2019 was positive with an in-year growth of £94,190. Quarter 1 of 2020 saw massive 6-figure reductions in the SDC investment portfolio, but by the end of 2020 the huge losses had turned into a modest (£10,877) growth. Communications with Brewin Dolphin have in 2020-21 increased due to pandemic related changes in the investment market. The SDC continues to manage its investments through Brewin Dolphin with a focus on long term investment strategies.

SDC Enterprises Ltd performed well in 2019 raising gift aid to the charity of £275,000 whilst also retaining profits for ensuring future company strength and return to the SDC parent body, especially given its acquisition of Sam Weller Ltd in early 2016 and the purchase of a new site in 2018 which it intended to develop in 2021. In 2020 however the global pandemic hit SDC Enterprises Group Ltd sales, particularly in the Sam Weller & Sons Ltd area with a 43% reduction in Sam Weller income, whilst SDC Enterprises Ltd income was down 14% in 2020.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Reserves Policy

The SDC Finance Committee reviews the Reserves Policy detail at regular intervals, in line with the SDC strategy and financial compendium. The SDC aims to hold between 12 and 15 months of budgeted total costs in its free Reserves. In accordance with Charity Commission guidance this is to: protect and safeguard the assets of their charity; permit the Society’s Board to act with reasonable care and skill; and ensure the charity is accountable.

In establishing this Reserves Policy, the SDC Finance Committee assessed: why reserves might be needed for the charity to be effective and how much was needed in Reserves. An impact and risk assessment were undertaken to arrive at the Reserves Policy for the SDC in its current form. This approach has meant that as the Society exits a tough 2020 into a challenging 2021 with no Gift Aid arising from SDC Enterprises Group Ltd, the Society has strong reserves which may be needed for a time just as this.

The Group reserves are represented by the Group funds of £7,677,957 (2019 - £7,001,442). Group cash at bank and in hand, on 31st December 2020, amounted to £2,449,738 (2019 - £1,770,771) whilst the cash at bank and in hand for the Charity alone was £605,192 on 31st December 2020 (£266,754 on 31st December 2019). Total resources expended by the charity alone in 2020 were down 6% at £893,964 (2019 £951,288). The SDC had free cash at bank and in hand (not designated for current or future PEG Projects), plus Brewin Dolphin managed investments, on December 31st, 2020, that amounted to 17.1 months of 2021 expenditure (up from 13.6 months the previous year) and thus sufficient cover in line with the policy above.

Where funds held are restricted these are shown in the Annual Accounts (See Note 25 Funds) where permanent endowment funds are also detailed. A substantial amount is held in the Unfunded Projects Reserve which is actively managed by the Project Evaluation Group that in turn reports to the Society’s Board regularly. Some of the Unfunded Projects Reserve has no allocated project as yet and in 2020 efforts were made to discuss potential projects with the SDC Committees and staff. The Board are confident these funds will be allocated to specific detailed projects but are also being cautious given the financial impacts of the Corona virus pandemic. In 2021 there will be a through re-write of the SDC main website (including Governance and Blog sub-sites) to bring the site sup to date to ensure data security and enable up to date functionality including key developments of the Members area Continuing Professional Development capabilities and a Digital Archive section.

Project development 2020

It became possible in late 2017 / early 2018 to consider and evaluate specific SDC development projects. Following a strategy set out in prior years for such events, the Society’s Board identified a Project Evaluation Group (PEG), chaired by SDC Vice President (Projects) Trevor Larkins, which has assessed development projects and prioritized them. The Board have identified and designated total funds for these projects to ensure they can be concluded. It also became apparent that The Associateship of the Society of Dyers and Colourists, (ASDC) online development would benefit from the same approach and so, a year on from initial development work, this was also brought into the PEG remit. The projects are key to SDC impact and delivery over the future years, ensuring delivery of charitable objectives and growth in sustainable income.

ASDC development has been the main priority, due to its flagship nature, and also due to students taking the course as development occurred. The complete appraisal and re-write of the ASDC syllabus and the content for online delivery has now been fully completed. The initial module of the Design Coloration Certificate has been completed and this will be available in 2021. The web-based learning platform can be accessed at Colour.Network and includes free-to-access as well as pay-to-access material. This includes the 2020 SDC webinars which can be viewed as recordings also.

The PEG Group are aware that substantial monies are residing in the Unfunded Projects Reserve Fund that are not yet allocated to any project. Given the impact of the international pandemic at the start of 2020 projects will be prudently initiated as the Unfunded Project Reserve may be temporarily called up on to ensure the Society maintains its’ necessary cash flow in 2021 and beyond. Cash internally ‘loaned’ from the Unfunded Project Reserve will be repaid for project use as the Society is able to do so.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Review of Activities

Bursaries

The SDC Bursary scheme has two funding streams:

• a) Main Bursary (Up to £500) For undergraduate and postgraduate students on a relevant course (e.g. Colour Chemistry, Fashion & Design, Textiles)

• b) ASDC Bursary (Up to £250) For students registered for the ASDC examinations.

The SDC Bursary scheme is managed overall by the SDC Education, Qualification and Accreditation Board (EQAB). In 2020 £3,006 was awarded as 9 (8 in 2019) bursaries. These bursaries are seen as supporting colour science education of the recipients and the sharing of their activity and reports at events and through The Colourist magazine ensures that several of the Royal Charter Objectives are addressed more widely, especially the dissemination of knowledge about colour.

Training

SDC Training courses continue to be delivered by external partner companies. Six individuals in Shanghai received Colour Fastness training whilst four received Colour Management training in Hong Kong, plus a further four received Colour Fastness training in Pakistan.

Due to the pandemic 2020 was a particularly difficult year for face-to-face training courses around the world and such many training events were not possible.

The SDC development of the virtual learning environment (VLE) Colour.Network allows many more courses to be delivered online and plans for courses, under the short course program, are key to the long term success of Colour.Network. These commenced in 2018, although later than planned due to staff changes and technology challenges. In 2020 due to the pandemic effects on physical meetings the Society started a Webinar programme in April 2020 with the first live webinar airing in May 2020.

Below is a list of the eleven webinars held in 2020 along with the speaker and live webinar attendee number (more individuals always register for the event than actually attend the live event). The number registering was typically from around the globe with up to 30 countries represented, making this a remarkable reach in a venture driven primarily by global changes due to the pandemic.

• Contemporary Colour Theory, Prof Stephen Westland (University of Leeds), 128 attendees

• Colour Communication – A review, Prof Stephen Westland (University of Leeds), 137 attendees

• Chemicals Compliance Webinar, Dr Siva Pariti (Sustainable Textiles Solutions), 85 attendees

• A history of dyes: from ancient Egypt to modern times, Dr Christine Holdstock (Independent Consultant), 181 attendees

• A history of pigments: from cave painting to the modern day, Dr Christine Holdstock (Independent Consultant), 175 attendees

• Dyeing with GOTS – an organic perspective, Mr Sumit Gupta (Global Organic Textile Standards), 129 attendees

• There is more to colour measurement than just CIE Lab*, Mr Matt Russell (Tintometer Ltd), 103 attendees

• SDC London Region’s How did I Get here? Speakers of Eimear Nooran (H&M), Laura Aldous (Unique Style Platform) & Erika Benz (Adidas), 112 attendees

• Colour Management for print designers and printer, Mr Duncan Ross (AVACAD/CAM Group), 133 attendees

• The Crutchley Archive – A colourful textile history, Dr Anita Quye (University of Glasgow), 183 attendees

• Textile care labelling: what the symbols mean and how they relate to colour fastness testing, Mrs Susan Bolton (Bolton Consulting), 80 attendees

These webinars were all recorded and are available on Colour.Network for SDC Members (free of charge) and nonmembers (chargeable).

Foundation Textile Coloration Certificate (FTCC) & Textile Coloration Certificate (TCC)

On the FTCC during 2020: 5 students from 3 companies received colour education through this route, which covered 45 teaching hours and 1 residential, plus 90 hours of personal study per student. For the TCC during 2020: 5 students from 5 companies received colour education through this route, which covered 60 teaching hours and 1 residential plus 120 hours of personal study per student. Personal tuition was provided to each student in addition, as required.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

These courses have now seen a total of 25 students on the FTCC course, with 25 successfully completing the course. The TCC has now seen in total 33 students with 24 of them going on to successful completion and with some continuing the 2-year TCC course into 2021. Twelve students have completed both FTCC and TCC courses within that number.

Details are available on Colour.Network for those interested in taking these courses.

LSDC\ASDC\CCol\FSDC Qualifications

The ASDC is a three-year course leading to a degree level qualification, having received the NARIC assessment that ASDC is a Level 6 qualification (equivalent to a good honours degree). Ultimately gaining this qualification allows students to then apply to be a Chartered Colourist (CCol). The online course covers the fundamental textile coloration principles and processes and is made up of 6 modules that are designed to meet the needs of the students and their chosen industry.

In 2020 new ASDC courses were written, recorded, and uploaded onto Colour.Network (which also details the module development programme). In the 2020 exam year (which runs from October 2019 to May 2020) seven students from 6 companies took 3 modules online (1 taking a single module and 6 taking two modules). Twelve examinations 12 passes were recorded. With each module taking 60 hours of guided online learning, supplemented by 120 hours per module per student of independent learning, a total of 2,340 hours of ASDC study were undertaken during the period covered by the 2020 examinations. Preparation work for future modules continued unabated also with a completely new module being produced for the up-coming 2020-21 period and assessment for learning improved within the online platform in some areas through different test and assessment formats.

Qualifications awarded in 2020 were: 4 ASDC’s, 2 Chartered Colourists (CCol) and 2 FSDC’s.

New ASDC module titles, structure and the timetable for delivery was agreed by EQAB. Funding has been generously made available through two bodies, the Worshipful Company of Dyers (£15,000 per year for 3 years) and the Cotton Industry War Memorial Trust (£15,000 per year for 3 years), for which the SDC is very grateful, and which came to a conclusion in 2020. The Worshipful Company of Dyers has already supplied a further £15,000 for 2020 ASDC development to ensure this high-level qualification receives the high-quality delivery it deserves.

Design Coloration Certificate

A Working Group of stakeholders (including Universities, retailers and industry) met, and a syllabus was agreed upon for this qualification. Expectations and time frame for delivery are much longer than for FTCC/TCC and ASDC as these remained the top SDC priority in qualification development. The DCC saw, in 2019 the syllabus move forward and the whole DCC syllabus was finalised. To ensure appropriate material and content the initial module content production was outsourced by the SDC for generation and was delivered to the SDC in late 2019 for beta testing and subsequent modifications. A great deal of positive feedback was received, and adjustments made, in 2020 for which we very much thank our beta testers. After some delays due to furlough working (of both beta testers and SDC staff) the ‘Colour in the Design and Textile Supply Chain’ module is now available on Colour.Network and is about to be marketed to specific College/University SDC Members during 2021.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Publications

Four issues of The Colourist , an SDC member benefit, were produced in 2020 and these include the annual Chartered Colourist listing and details of new members. Back issues of these are available to SDC members in the Members area of the SDC website. The members area is being development in the SDC ProejctesProjects and so please be aware the location of The Colourist may change slightly with time since this Report was produced. Availability of The Colourist is communicated to members via email and so the SDC has measures of the open rates and click through activity to The Colourist and it is encouraging to see some growth in interest in this publication. Members are also provided with free access in the Members area of the website to International Dyer and Science in Parliament , both of which receive a great deal of interest.

Coloration Technology, the SDC academic journal published in conjunction with Wiley, covers many aspects of coloration with a detailed overview available on the Wiley’s website for the journal.

Submission numbers were up by 7.4% in 2020, although remaining lower than the high of 2016 (see graph). Submissions analysed by key territories (see graph below) showed that China continued to be the dominant source of submissions to Coloration Technology.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

The speed of the review process is of huge importance to submitting authors and also in publishing new scientific reports. The table above shows how Wileys and the Coloration Technology editorial team have reduced the median days to review completion by 40% over the past 4 years.

In 2014 it was announced that the Coloration Technology Impact Factor was 1.173 and since then the Impact Factor has indicated that competition is strong but the SDC publication through Wiley’s was keeping up the competitive advantage battle. This was confirmed in the Impact Factor now reaching 1.614 for 2020 as reported in mid-2021, a 37% rise form the original IF data. This coverage shows how the Coloration Technology peer reviewed publication continues its sustained growth in influence worldwide. Indeed, the map below demonstrates the global reach of the publication.

The graphs and map below show the readership of Coloration Technology which continues to see growth in article downloads primarily from China, the USA, and UK (35% across the three territories) although the wide reach of the publication is seen in the 36% of ‘other countries’ downloading articles.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

The SDC is very grateful to Wiley for its assistance in terms of both resources and expertise. Wiley has a marketing plan in place for Coloration Technology and the textbooks they produce and the SDC can supply more detail on request of the publications impact.

Colour Index™

The Colour Index™ is known worldwide and is used by many companies, research institutes, universities and government bodies. Many Colour Index™ users are, significantly, outside the traditional textile manufacturing and dye houses SDC sectors.

The decision was taken in late 2018, by the Society’s Board, to transfer the Colour Index™ sales and marketing to SDC Enterprises Ltd. This took some time to complete for several reasons, including appropriate HR consultations and processes, but the transfer took place from 1st June 2019. The Colour Index Pigment and Solvent Dyes Board continues to meet under the auspices of the Society to maintain independence from the marketing and sales function.

Standards

SDC’s active involvement with BSI standards ensured their continued relevance, accuracy and usability, based on sound scientific knowledge for the benefit of the supply chain. The areas covered chemical, physical and flammability testing of textiles, textile cleansing and care labelling, and apparel and interior textile (product specification). The SDC provided the Secretariat to the BSI technical committee TCI 81 for colour fastness of textiles and colour communication thus supporting all UK industries for colour and textiles.

The SDC, as required by our contract with ISO, has the secretariat of TC38 SC1 Coloured textiles and Colorants, with partners in China. Brian Woolley continues as secretary to this committee. The UK passed on the secretariat to our Chinese partners and their representative Mr Xueqian Zhao in 2019.

The next plenary meetings of ISO TC38 SC1 will take place virtually in October 2021.

The SDC’s Technical Director is the secretary for TCI 81 as stated above and representation on the following committees is as indicated:

• TCI/066/0-/08 Burning behaviour A Filarowski

• TCI/080 Chemical testing of textiles A Filarowski

• TCI/082 Textiles care labelling, dry cleaning, domestic laundering and drying A Filarowski

• TCI/100 Co-ordination of activities in textiles and clothing A Filarowski

• British Standards Institution Technical Committees – A Filarowski as SDC representative

• STI/14 Colour Measurement & Schedules M R Luo

• TCI/24 Physical Testing of Textiles Vacant

• TCI/80 Chemical Testing of Textiles A Filarowski & S Bolton

• TCI/81 Colour Fastness & Colour Measurement of Textiles J Foister

• TCI/82 Textile Care Labelling A Filarowski

• • CW/15 Safety of Toys S Bolton

• The SDC would like to thank all the above individuals for all their work on behalf of the SDC on these committees.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Events

The SDC events showcase research and best practice in coloration. They provide education, inspiration and networking opportunities. SDC events are regional, national and international, with wide ranging topics and diverse audiences. Many are free to attend, with a strong focus on supporting students and young professionals. The SDC also jointly organizes events and participates in events organized by others, thereby spreading SDC’s educational reach and profile. Such events very much align with the Objects of the SDC Royal Charter also. That Governing document describes events in a language of its time to “hold meetings for the reading of papers and giving of lectures on coloration and colouring matters and for discussion of the same”. In 2020 this Object in the Royal Charter was very much delivered online via SDC Webinars which are listed in the Training section of this Annual Report.

In addition, the SDC has used online meetings as a way of keeping in contact with the SDC Regions as travel has been curtailed both by the pandemic and by budgetary constraints. This has been a positive move in that the SDC President, for example, has been able to engage with more individuals across different countries than simple travel would have permitted. This benefit has been so marked that it is the intention of the SDC President and the organisation to continue such member engagement events in the future.

Details of all SDC events can be found on the SDC website and many have featured reports after the event in editions of The Colourist which SDC Members can access via the SDC website Members area.

Membership

The SDC membership has continued its decrease as prior Annual Reports have shown. The SDC gained 86 (92 in 2019) new individual SDC Members in 2020. The total number of individual Members over time can be seen in the plot below. The Chartered status individuals have also fallen in number, although numbers are stable or only slowly declining in recent years. In recent years the case for taking up SDC membership has arguably been weak and work has been put into strengthening that offer. A SDC Membership Committee was proposed in late 2020 and came into being in 2021, many years after such last existed. This committee was informed by a number of focus group meetings held by the SDC in the second half of 2020 and has much important work to do over the coming few years.

Recruitment of new members and indeed new students is low and must be increased. The complete re-write of the ASDC Syllabus, together with students on the FTCC and TCC courses, was hoped to stabilise membership numbers but it has been found that many of the FTCC and TCC students do not remain in membership once they have gained their qualifications.

Membership value for money

Going forward more will be made of the membership benefits and their value for money, as evidence exists to demonstrate these are ill-understood by members and prospective members alike.

• The Colourist member magazine is being re-launched in 2021 as an electronic only publication (thus addressing production costs but also environmental impacts of paper production and international postage, a task made all the more difficult and costly by the pandemic and Brexit). The Colourist will feature more company member news and profiles and be produced by outsourced marketing specialists at the same cost as in recent years (ca £13k pa). It also includes a survey for members to input into what they wish to see in The Colourist in future

• Many members also welcome the free access to SDC webinars (usually charged at £20 per Webinar for nonmembers) including access to recordings of past webinars via Colour.Network

• International Dyer magazine is supplied electronically via the SDC members area of the website free of charge to SDC members and this alone usually costs multiples of the full SDC membership annual subscription

• The Science in Parliament publication, also available in the members area of the SDC website, is a more wideranging publication available as part of the SDC membership subscription

• Members also receive generous discounts on: SDC books; Coloration Technology subscriptions; and SDC short courses

• From time-to-time SDC Membership also entitles access to webinars and events of other organisation free of charge or at reduced cost

• Members often have opportunity to provide presentations via the SDC Webinar series, of which the marketing and promotional value of their company and personal brand far exceeds annual membership subscription rates.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Before the discounts above are taken into consideration, the cost of individual membership to the SDC is £25 pa before any staff time at all is taken into consideration. Student membership costs less than this, so many members support our student members through their membership subscriptions and once staff time is added the cost of membership exceeds the subscription price. SDC member subscriptions do deliver value for money when the features and benefits are considered and, like all memberships, the more one engages with the organisation, the greater your value for money from your SDC membership.

Company memberships numbered 20 at the end of 2020 and College / University memberships also numbered 20 at the end of 2020. These memberships are more prone to impact from economic downturns, such as brought about by the pandemic and the SDC has seen a number of companies and college / universities not renew memberships. New memberships are being taken up also though and profiles in the new Colourist, opportunities to present webinars as well as access webinars, plus online courses specifically being promoted to universities are planned to stem this trend. The new SDC Membership Committee also has representatives from industry and universities in order to gain feedback on revised approaches and activities.

In last year’s Annual Report it was stated that the SDC is addressing the long-term decline in CCol numbers through the colour education pathway and ASDC course provision. This is starting to bear fruit with CCol applications now arising. A proposal of a change in the SDC Rules through the SDC Education, Qualifications and Accreditation Board will also open up direct applications for Chartered status in addition to following gaining the ASDC qualification.

Sponsorship

The Worshipful Company of Dyers have generously sponsored development of the ASDC course, both for online delivery and in updating the content, over the recent years. This demonstrates the ongoing commitment of both organisations to the skills development in the coloration sector and the SDC is very grateful and encouraged by their generous support. It should also be added that their keen interest in the developments is very much expressed and as welcome as their funding. In 2020 the Worshipful Company also supported the SDC in setting up the ‘Future Dyers Fund’ to help financially anyone from England applying for our FTCC and TCC courses. This was an excellent initiative that turned into an even better one as the pandemic impacted individuals and through the Fund the SDC can ensure students continue their studies and skills development to assist them in securing future employment also.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Partner and Affiliate organisations

The SDC Charitable Objectives from the Royal Charter includes “To co-operate with other scientific organisations and bodies in relation to colour and its application and use”. To this end the SDC is an active member of The Science Council and The Parliamentary and Scientific Committee. Other active network links to partner organisations include the AATCC, ASBCI, several universities, Huddersfield Textile Centre of Excellence and The Society of Leather Technologists and Chemists.

The SDC also has long-standing affiliate relationships with the Society of Dyers and Colourists of Australia and New Zealand (see http://www.sdcanz.com) and The South African Dyers’ and Finishers’ Association (SADFA) (see www.sadfa.org.za).

Investment Policy

The SDC funds consist of equities held in a managed portfolio at medium risk and cash held on term deposit accounts not required for current activities. Equities are held in fixed interest, ordinary shares and government stocks. The portfolio market value and cash deposits on 1st January 2020 were £946,779 and £23,444 respectively. During 2018 the Society’s Board approved the transfer of £100,000 during the year into the SDC current accounts to support cash flow which is why the amount in investments dips in 2018 in the chart below.

The SDC investments are intended for the long term and long-term stock performance remained good at the end of 2019. In the first part of 2020 however, there has been a huge impact internationally on investments as a result of the Corona virus pandemic. The SDC Finance Committee and Society’s Board are in regular contact with the investment managers and expected it to be many months before markets slowly recover. The huge market falls by the end of Q1 2020 had been recovered by the end of the year with a small (£10,877) growth year on year.

Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fund raising as “soliciting or otherwise procuring money or other property for charitable purposes.” Such amounts receivable is presented in our accounts as “voluntary income” and include legacies and grants.

In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day-to-day management of all income generation is delegated to the executive team, who are accountable to the Society’s Board.

The charity is not bound by any undertaking or bound by any regulatory scheme and the charity does not consider it necessary to comply with any voluntary code of practice.

We have received no complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonably at all times; as we do not approach individuals for funds, we do not have to particularise this to fundraising activities nor do we consider it necessary to design specific procedures to monitor such activities.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

Risk Assessment

The risk situation is reviewed by the Society’s Board who judge that over the next three years the SDC has a low to medium risk that charitable activities may be less because of a reduction of available funds. Insurances are held wherever possible to cover for external events and internal management is used to minimise potential occurrence and impact. The pandemic in 2020 has affected the Gift Aid usually received from the trading subsidiary. The effects of this have been mitigated in 2021 through reductions in staff costs whilst outsourcing marketing provision in particular to maintain delivery and reduce impact.

Human Resources and Equality, Diversity and Discrimination Policy

The SDC is an equal opportunities employer and encourages diversity. It is non-discriminatory on age, disability, ethnicity, gender reassignment, marriage and civil partnership, race and religion, sex and sexual orientation in all operations and in all membership matters.

In 2016 improvements were made in human resource management, in part as a consequence of financial reporting standards requirements. The SDC now has to account each year in financial terms to our Auditors for the annual leave and flexitime carried forward. Hence, through a time management system linked to the Building Security System, the SDC can now manage the staff time delivery. In 2020 staff delivered 22% (2017 19%, 2018 37%, 2019 16%) more hours than their combined contracted hours.

HR management was expanded in 2016 and is provided by an external HR company. This includes remote and on-site support for staff and managers, as well as a web based secure HR portal for HR records, and holiday and sick leave monitoring.

Data security

Data security has been, and will continue to be, a very important issue and the SDC will ensure that user information is protected and IT systems secure. In addition to protecting such information the SDC does not supply any individual’s information to others unless it is for a specific SDC purpose (e.g. the print / mailing house for fulfilment of The Colourist printing and mailings). The SDC has also made available to staff and committee/Board members training on Cybersecurity awareness. No issues arose from breaches of data security in the year.

GDPR

The EU General Data Protection Regulations (GDPR) came into force in May 2018 and applies to everyone processing data of EU individuals or offering services to EU subjects, regardless of where that processing location is. The SDC prepared for this new data regulation for many months. From an already good starting point GDPR still required some additional changes and clarity within the SDC for staff, Society Board members, committee members and volunteers. GDPR has been specifically a training item and continues to do so.

Health and Safety

The Health & Safety policy of the SDC is to ensure as far as reasonably practical public, staff and the environment are protected and that all legal requirements are met. Each year the SDC has two risk assessment reports produced by external experts on Perkin House Health and Safety and Perkin House Fire Risk. These reports highlight a number of actions to be taken based on Low-Medium-High risk prioritization. In 2016 this resulted in a renewed asbestos survey of the building, which established small amounts of asbestos has been used but were in little used areas and in safe condition. Fire safety notices and several other risk areas have also been improved as a consequence. The 2017 assessment produced further recommendations which have been implemented, including all staff fire awareness training. The 2018 report demonstrated the progress made, plus further, less urgent actions to be made, with similar performance in the 2019 report. The appointment of a new Building Manager for Perkin House in late 2019 has ensured health and safety have been improved further with regular checks and action. During 2020 a programme of emergency lighting replacement took place as testing had demonstrated their operation is not maintained for the required duration.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Trustees’ Annual Report (continued)

UK Pension Auto-enrolment

The UK Government has also phased in auto-enrolment for employee pension schemes. This has been a topic of discussion in the SDC Charity annual pension review each year for several years now. The SDC had a Staging Date of February 2017, when it must comply, and actively managed this with its pension agent in order that it fully complied at the start of 2017. No issues were noted, with the vast majority of the SDC staff members in the SDC Pension scheme. Good pension scheme performance via The Peoples Pension has resulted in lower scheme charges in 2019. The second phase of auto-enrolment is now being entered with staff who had opted out of the scheme having to opt out once again after a specific time period has passed.

Remuneration Policy

The salaries of all SDC staff are set based on a Finance Committee and Society Board approved overall budget based on itemized lines including staff salaries. The SDC utilises a Remuneration Committee to approve all staff salary rises. The SDC Remuneration Committee is comprised of the Honorary Treasurer, Honorary Secretary, Chair of the Society’s Board and the SDC CEO. Pay rises in recent years have been zero and this was the case in both 2020 and at the start of 2021.

Statement of Trustees’ Responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including income and expenditure, of the charity for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable 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 charity will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

This report was approved by the Society’s Board on 9 August 2021 and signed on its behalf by:

G Thatcher Chair of Society’s Board

D Bamford S Wilkinson G Clayton Honorary Treasurer Honorary Secretary CEO

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020

Independent Auditor’s Report to the Trustees of The Society of Dyers & Colourists (SDC)

Opinion

We have audited the financial statements of The Society of Dyers & Colourists (SDC) (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise Statement of Financial Activities, Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 December 2020, and of the group’s incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or parent charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Independent Auditor’s Report to the Trustees of The Society of Dyers & Colourists (SDC)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or

• sufficient accounting records have not been kept; or

• the parent charity’s financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

Following this assessment we considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud in evaluating the stock and cash balances.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors, trustees and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Charities Act 2011, the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

20

We then performed audit procedures after consideration of the above risks which included the following:

• assessing the validity of valuation method of stock;

• obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of the variable and fixed overhead applied in the valuation of stock;

• performing a retrospective review of the previous year's stock for obsolete or slow moving stock;

• Documenting and assessing the internal controls over cash and bank balances

• performing tests if detail on the balance sand reconciliations

• enquiring of management concerning actual and potential litigation and claims;

• reviewing correspondence with HMRC, and the company’s legal advisors;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Watson Buckle Limited, Statutory Auditor Bradford United Kingdom

10 September 2021

21

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020

Consolidated Statement of Financial Activities for the year ended 31 December 2020 (including Income and Expenditure Account)

Permanent 2020 Total Funds 2019 Total Funds Unrestricted funds Restricted funds endowment funds Revaluation reserve Notes £ £ £ £ £ £ Income From: Donations 3 30 55,000 - - 55,030 30,000 Charitable activities 4 156,195 - - - 156,195 252,972 Other trading activities 5 4,549,550 - - - 4,549,550 5,966,343 Investments 6 138,104 - - - 138,104 114,470 Other income 7 48,973 - - - 48,973 6,504 Total income 4,892,852 55,000 - - 4,947,852 6,370,289 Expenditure on: Raising funds 8 3,488,263 - - - 3,488,263 4,070,123 Charitable activities 9 860,545 9,309 - - 869,854 938,879 Taxation 11 142,712 - - - 142,712 258,352 Total Expenditure 4,491,520 9,309 - - 4,500,829 5,267,354 Net gains/losses on investments 12 20,175 - - 102,752 122,927 (237,361) Gains/Losses on revaluation of fixed assets 16/18 39,360 - - 67,205 106,565 (403,513) Net income for the year 460,867 45,691 - 169,957 676,515 462,061 Transfers between funds 25 16,184 (16,184) - - - - Net Movement in funds 477,051 29,507 - 169,957 676,515 462,061 Reconciliation of funds: Total funds brought forward at 1 January 25 6,972,517 11,424 17,501 - 7,001,442 6,539,381 Total funds carried forward at 31 December 25 7,449,568 40,931 17,501 169,957 7,677,957 7,001,442	Permanent 2020 Total Funds 2019 Total Funds Unrestricted funds Restricted funds endowment funds Revaluation reserve Notes £ £ £ £ £ £ Income From: Donations 3 30 55,000 - - 55,030 30,000 Charitable activities 4 156,195 - - - 156,195 252,972 Other trading activities 5 4,549,550 - - - 4,549,550 5,966,343 Investments 6 138,104 - - - 138,104 114,470 Other income 7 48,973 - - - 48,973 6,504 Total income 4,892,852 55,000 - - 4,947,852 6,370,289 Expenditure on: Raising funds 8 3,488,263 - - - 3,488,263 4,070,123 Charitable activities 9 860,545 9,309 - - 869,854 938,879 Taxation 11 142,712 - - - 142,712 258,352 Total Expenditure 4,491,520 9,309 - - 4,500,829 5,267,354 Net gains/losses on investments 12 20,175 - - 102,752 122,927 (237,361) Gains/Losses on revaluation of fixed assets 16/18 39,360 - - 67,205 106,565 (403,513) Net income for the year 460,867 45,691 - 169,957 676,515 462,061 Transfers between funds 25 16,184 (16,184) - - - - Net Movement in funds 477,051 29,507 - 169,957 676,515 462,061 Reconciliation of funds: Total funds brought forward at 1 January 25 6,972,517 11,424 17,501 - 7,001,442 6,539,381 Total funds carried forward at 31 December 25 7,449,568 40,931 17,501 169,957 7,677,957 7,001,442	Permanent 2020 Total Funds 2019 Total Funds Unrestricted funds Restricted funds endowment funds Revaluation reserve Notes £ £ £ £ £ £ Income From: Donations 3 30 55,000 - - 55,030 30,000 Charitable activities 4 156,195 - - - 156,195 252,972 Other trading activities 5 4,549,550 - - - 4,549,550 5,966,343 Investments 6 138,104 - - - 138,104 114,470 Other income 7 48,973 - - - 48,973 6,504 Total income 4,892,852 55,000 - - 4,947,852 6,370,289 Expenditure on: Raising funds 8 3,488,263 - - - 3,488,263 4,070,123 Charitable activities 9 860,545 9,309 - - 869,854 938,879 Taxation 11 142,712 - - - 142,712 258,352 Total Expenditure 4,491,520 9,309 - - 4,500,829 5,267,354 Net gains/losses on investments 12 20,175 - - 102,752 122,927 (237,361) Gains/Losses on revaluation of fixed assets 16/18 39,360 - - 67,205 106,565 (403,513) Net income for the year 460,867 45,691 - 169,957 676,515 462,061 Transfers between funds 25 16,184 (16,184) - - - - Net Movement in funds 477,051 29,507 - 169,957 676,515 462,061 Reconciliation of funds: Total funds brought forward at 1 January 25 6,972,517 11,424 17,501 - 7,001,442 6,539,381 Total funds carried forward at 31 December 25 7,449,568 40,931 17,501 169,957 7,677,957 7,001,442
		4,491,520 9,309 - - 4,500,829 5,267,354
		20,175 - - 102,752 122,927 (237,361) 39,360 - - 67,205 106,565 (403,513)
		460,867 45,691 - 169,957 676,515 462,061
		16,184 (16,184) - - - -
		477,051 29,507 - 169,957 676,515 462,061 6,972,517 11,424 17,501 - 7,001,442 6,539,381
		7,449,568 40,931 17,501 169,957 7,677,957 7,001,442

All amounts relate to continuing operations. The consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 27 to 46 form part of these financial statements.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020

Charity Statement of Financial Activities for the year ended 31 December 2020 (including Income and Expenditure Account)

Notes Income From: Donations 3 Charitable activities 4 Investments 6 Other income 7 Total income Expenditure on: Raising funds 8 Charitable activities 9 Total Expenditure Net gains/losses on investments 12 Gains/Losses on revaluation of fixed assets 16/ 18 Net income for the year Transfers between funds 25 Net Movement in funds Reconciliation of funds: Total funds brought forward at 1 January 25 Total funds carried forward at 31 December 25	Notes Income From: Donations 3 Charitable activities 4 Investments 6 Other income 7 Total income Expenditure on: Raising funds 8 Charitable activities 9 Total Expenditure Net gains/losses on investments 12 Gains/Losses on revaluation of fixed assets 16/ 18 Net income for the year Transfers between funds 25 Net Movement in funds Reconciliation of funds: Total funds brought forward at 1 January 25 Total funds carried forward at 31 December 25	Notes Income From: Donations 3 Charitable activities 4 Investments 6 Other income 7 Total income Expenditure on: Raising funds 8 Charitable activities 9 Total Expenditure Net gains/losses on investments 12 Gains/Losses on revaluation of fixed assets 16/ 18 Net income for the year Transfers between funds 25 Net Movement in funds Reconciliation of funds: Total funds brought forward at 1 January 25 Total funds carried forward at 31 December 25	Permanent 2020 Total Funds 2019 Total Funds Unrestricted funds Restricted funds endowment funds Revaluation reserve £ £ £ £ £ £ 400,030 55,000 - - 455,030 305,000 156,195 - - - 156,195 252,972 85,920 - - - 85,920 82,723 356,797 - - - 356,797 350,000
			998,942 55,000 - - 1,053,942 990,695
			24,110 - - - 24,110 12,409 860,545 9,309 - - 869,854 938,879
			884,655 9,309 - - 893,964 951,288
			20,175 - - 102,752 122,927 (237,361) 39,360 - - 217,750 257,110 (403,513)
			173,822 45,691 - 320,502 540,015 (601,467)
			16,184 (16,184) - - - -
			190,006 29,507 - 320,502 540,015 (601,467) 2,647,138 11,424 17,501 - 2,676,063 3,277,530
			2,837,144 40,931 17,501 320,502 3,216,078 2,676,063

All amounts relate to continuing operations. The consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 27 to 46 form part of these financial statements.

23

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Consolidated Balance Sheet as at 31 December 2020

					2020		2019
	Notes			£	£	£	£
Fixed Assets
Intangible Assets		15			3,483		45,283
Tangible Assets		16			1,254,382		1,055,601
Investments		17			981,100		970,223
Investment Property		18			1,746,500		1,780,345
					3,985,465		3,851,452
Current Assets
Stock		19	1,985,320			2,030,803
Debtors		20	931,866			1,234,423
Cash at bank and in hand			2,449,738			1,770,771
			5,366,924			5,035,997
Liabilities
Creditors: amounts failing due within	one year	21	(794,132)			(938,492)
Net current assets					4,572,792		4,097,505
Total assets less current liabilities					8,558,257		7,948,957
Creditors: amounts falling due after more
than one year		22			(817,300)		(889,515)
Provisions for liabilities
Deferred tax		24			(63,000)		(58,000)
Total Assets					7,677,957		7,001,442
The funds of the charity:		25
Unrestricted funds
Accumulated fund					2,386,777		2,304,771
Funds retained in SDC Enterprises Group					4,461,879		4,325,379
Designated funds					450,367		342,367
Revaluation reserve					320,502		-
Total unrestricted funds					7,619,525		6,972,517
Restricted funds					40,931		11,424
Permanent endowment funds					17,501		17,501
					58,432		28,925
Total Charity Funds					7,677,957		7,001,442
The financial statements were authorised for		issue and signed on behalf of the Society’s Board on					9 August 2021.
G Thatcher	D Bamford			S	Wilkinson	G Clayton
Chair of Society’s Board	Honorary Treasurer			Honorary Secretary		CEO

The notes on pages 27 to 46 form part of these financial statements.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Charity Balance Sheet as at 31 December 2020

Notes Fixed Assets Tangible Assets 16 Investments 17 Investment Property 18 Current Assets Debtors 20 Cash at bank and in hand Liabilities Creditors: amounts failing due within one year 21 Net current assets Net Assets The funds of the charity: 25 Unrestricted funds Accumulated fund Designated funds Revaluation reserve Total unrestricted funds Restricted funds Permanent endowment funds Total Charity Funds	£ 215,516 605,192	2020 £ 754,830 1,426,799 346,500	£ 326,984 266,754	2019 £ 545,876 1,415,922 239,250
		2,528,129 687,949		2,201,048 475,015
	820,708 (132,759)		593,738 (118,723)
		3,216,078		2,676,063
		2,386,777 450,367 320,502		2,304,771 342,367 -
		3,157,646		2,647,138
		40,931 17,501		11,424 17,501
		58,432 3,216,078		28,925 2,676,063

The financial statements were authorised for issue and signed on behalf of the society’s board on 9 August 2021.

G Thatcher Chair of Society’s Board

D Bamford S Wilkinson Honorary Treasurer Honorary Secretary

G Clayton CEO

The notes on pages 27 to 46 form part of these financial statements.

25

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Consolidated Statement of Cash Flows for the year ended 31 December 2020

Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period (as per the statement of financial activities) Adjustments for: Revaluation of fixed assets Revaluation of investment property Gains(losses) on investments (Profit)/Loss on disposal of fixed assets Tax expense Tax paid Amortisation Depreciation charge Decrease/(Increase) in stocks Decrease/(Increase) in debtors Decrease in creditors Net cash provided (used in) operating activities Cash flows from investing activities: Purchase of property, plant and equipment Proceeds from the sale of investments Proceeds from the sale of fixed asset Purchase of investments Purchase of investment property Cash outflow on acquisition of subsidiary Movement in cash held within investments Net cash provided by (used in) investing activities Cash flows from financing activities: New loan/ (repayments) Net cash provided by (used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	Group 2020 Total funds 2019 Total Funds £ £ 676,515 462,061 (257,110) 47,793 403,513 338,655 (20,175) (101,294) - (38) 142,712 258,352 (275,697) (288,994) 41,800 41,800 128,557 150,791 45,483 (373,559) 329,557 (139,348) (16,069) (173,677)
	843,366 578,262
	(70,228) (35,568) 341,650 183,470 - 300 (345,452) (181,001) (13,948) (81,026) - 13,100 4,635
	(74,878) (109,190)
	(89,521) (236,687)
	(89,521) (236,687)
	678,967 232,385 1,770,771 1,538,386
	2,449,738 1,770,771

The notes on pages 27 to 46 form part of these financial statements.

26

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements

1 General Information

The Society of Dyers & Colourist is a charitable body, incorporated by Royal Charter (RC000576) with the governing documents being the Royal Charter (1963), with Amendments, By-laws (2009) and Rules (2012, 2014, 2015, 2017, 2018 and 2019 as amended). The address of the registered office is shown in the Trustees’ Annual Report. The nature of the group’s operations and its principal activities are outlined in the Trustees’ Annual Report. The presentational currency is sterling and amounts are rounded to the nearest whole £.

2 Accounting Policies

Basis of preparation

The financial statements have been prepared under the historical cost convention, with items recognised at cost or transaction values unless otherwise stated in the relevant note to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity meets the definition of a public benefit entity as defined by FRS 102.

The trustees consider that there are not material uncertainties about the charity’s ability to continue as a going concern.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group’s accounting policies.

The following principal accounting policies have been applied:

Basis of consolidation

The group financial statements consolidate the accounts of the Society of Dyers and Colourists and its subsidiary’s accounts on a line by line basis. Transactions between the group companies are eliminated on consolidation.

The consolidated financial statements include the financial statements of the charity and its subsidiary undertakings made up to 31 December 2020. The acquisitions method of accounting has been adopted. Under this method the group net incoming resources include the results of subsidiaries from the date of acquisition and to the date of sale outside the group in case of disposals and subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition

Going concern

The Trustees have reviewed the budgets and cash flow forecasts for the period at least 12 months from the approval of these financial statements and consider that there are no material uncertainties about the group and charity’s ability to continue as a going concern.

Fund accounting

The fund held by the charity are:

• Unrestricted funds – these are general funds which can be used in accordance with the charitable objectives at the discretion of the trustees. Included in unrestricted funds are certain designated funds set aside by the trustees for specific purposes.

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

• Permanent endowment funds – these represent the fixed asset investments which must be held permanently by the charity.

The objectives of the various designated, restricted and permanent endowment funds are set out in note 25.

27

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

Income

All income from membership subscriptions, donations, charitable activities, income from other trading activities, investment income, government and capital grants, are included in the Statement of Financial Activities when the SDC is entitled to the income and the amount can be quantified with reasonable accuracy.

Investment income and gains/(losses) are allocated to the appropriate funds.

• Income from the sale of goods is recognised when all of the following conditions are satisfied:

• the group has transferred the significant risks and rewards of ownership to the buyer;

• the group retains neither continuing managerial involvement to the degree usually associated with

• the amount of revenue can be measured reliably;

• it is probable that the group will receive the consideration due under the transaction; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Gift aid income

Taxable profits transferred from the subsidiaries are recognised as donations when the subsidiary has made an irrevocable commitment to the charity to pay the Gift Aid donation.

During the year the charity has received Gift Aid from subsidiaries of £400,000 (2019 - £275,000).

Expenditure

• Raising funds: The following activities – trading costs of the subsidiary, car park lease, cost of managing investments and general marketing – are for the purpose of raising funds.

• Charitable activities: The following activities – colour experience, membership and qualifications, publications, technical, the day to day running of the SDC consisting of staff and administration costs – are of charitable nature and are provided for the benefit of members and the general public.

• Governance Costs include the day to day governance running of the SDC consisting of administration costs including audit and other professional costs, trustee travel, training, meetings and excludes any costs running funds.

All resources expended are on an accrual basis.

Grants payable are charged in the year when the offer is conveyed to the recipient.

Support costs and overheads are allocated in line with the relevant percentage of income receivable for that related activity.

Trading expenses are those of the charity’s wholly owned subsidiary and do not include any of the charity’s overheads. Support costs are those of managing and administering the SDC and represent expenses incurred attributable to the management of the charity’s assets.

Tangible fixed assets and depreciation – held at cost less depreciation.

Depreciation is provided to write off the cost or valuation, less estimated residual values, of all the fixed assets except freehold land, over their expected useful lives. It is calculated on the following rates:

Freehold property - 5% straight line Furnishing and general equipment - 15-25% straight line Computer equipment - 33.3% straight line Leasehold improvements - over the term of the lease

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. Valuations are based on observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the income and expenditure account.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

Building revaluation – Investment Property and Freehold Property

The basis of building revaluation was Market Value with vacant possession and existing use. Revaluation is performed in accordance with the RICS Valuation – Professional Standards January 2014 Edition (the ‘’Red Book’’), where applicable having due regard to the Practice Statements and Guidance Notes therein for valuations of this nature.

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income.

Fixed asset investments

Listed investments are stated at Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

The investment in the SDC’s trading subsidiary, SDC Enterprises Limited, is stated at cost, less provision for impairment.

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group’s share of its identifiable assets and liabilities of the acquire at the date of the acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the consolidated statement of comprehensive income over its useful economic life (UEL). Directors have assessed the UEL of goodwill to be 5 years.

Debtors

Debtors are recognised initially when they become due at the transaction price. They are subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. A provision for impairment of debtors is established when there I objective evidence that the charity will not be able to collect all amounts due according to the original terms of the debtors.

Creditors

Creditors are obligations to pay for goods and services that have been acquired by the charity. Creditors are initially recognised at the transaction price and subsequently measured at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Pension costs

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

29

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to income and expenditure account on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the income and expenditure account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Foreign currencies

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is remeasured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Research and developments

Research and development costs are written off to the profit and loss account when incurred.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Key sources of estimation uncertainty

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the asset. The carrying amount is £1,254,382 (2019£1,055,601).

30

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

Stock provision

The group makes an estimate of the recoverability of the cost of stock. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods. The carrying amount is £2,985,320 (2019 - £2,030,803).

Impairment of debtors

The group makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors management considers factors which include the current credit rating of the debtor, the ageing profile of debtors an historical experience. The carrying amount is £608,500 (2019 - £1,050,524).

Financial instruments

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

Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. Work in progress and finished goods include labour and attributable overheads.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Mixed use

A judgement has been made to split the property value between investment property and freehold property based upon the used by the Group compared to the area rented externally.

3 Income from donations

Gifts and donations	Group Charity 2020 2019 2020 2019 £ £ £ £ 55,030 30,000 455,030 305,000

Included within gifts and donations is £55,000 (£30,000) of restricted income.

31

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

4 Income from charitable activities

Day of Celebration Seminars and conferences Books and publications: Academic books Malcolm the Weaver books Coloration Technology Colour Index Training Membership subscriptions Qualifications Other	Group Charity 2020 2019 2020 2019 £ £ £ £ 171 3,548 171 3,548 1,063 - 1,063 - 1,065 755 1,065 755 1,095 946 1,095 946 41,000 42,854 41,000 42,854 - 39,916 - 39,916 58,273 56,557 58,273 56,557 46,039 45,042 46,039 45,042 360 617 360 617 7,129 62,737 7,129 62,737
	156,195 252,972 156,195 252,972

All income from charitable activities was unrestricted in the current preceding year.

5 Income from other trading activities

	Group	Group	Charity
	2020	2019	2020	2019
	£	£	£	£
Trading income from subsidiaries	4,549,550	5,966,343	-	-

All income from other trading activities was unrestricted in the current and preceding year.

6 Income from investments

Rental Income Interest received Dividends from listed investments	Group Charity 2020 2019 2020 2019 £ £ £ £ 112,290 85,801 62,161 55,657 3,084 3,236 1,029 1,633 22,730 25,433 22,730 25,433
	138,104 114,470 85,920 82,723

All income from investments was unrestricted in the current and preceding year.

7 Other income

er income
License fee received from subsidiary Government grants	Group Charity 2020 2019 2020 2019 £ £ £ £ - - 350,000 350,000 48,973 6,504 6,797 -
	48,973 6,504 356,797 350,000

Group Government grants includes Job Retention Scheme income of £42,469 (2019 £Nil) and Charity Government grants includes Job Retention Scheme income of £6,797 (2019 £Nil).

All other income was unrestricted in the current and preceding year.

32

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

8 Expenditure on raising funds

General marketing Bradford Council car park lease Broker fees Trading by subsidiaries	Group Charity 2020 2019 2020 2019 £ £ £ £ 12,094 2 12,094 2 4,667 4,617 4,667 4,617 7,349 7,790 7,349 7,790 3,464,153 4,057,714 - -
	3,488,263 4,070,123 24,110 12,409

All expenditure on raising funds was unrestricted in the current and preceding year.

9 Expenditure on charitable activities

Books – Academic Books – Malcolm the Weaver Coloration Technology Colour Index (AATCC Share) The Colourist Qualifications costs Training costs Salary costs (including redundancy costs) Travel and subsistence Operational costs Depreciation (Profit) on disposal of tangible fixed assets (Profit) on reclassification to investment properties Bad debts Governance costs (Note 10) Engaging with Colour Bursaries / Awards Seminar and conference costs Colour Education Day of Celebration Other SDC committees Outsourced service costs: - External accountancy and consultancy fees - CI consultant fees - HR helpline services - Bookkeeping services

Group Charity 2020 2019 2020 2019 £ £ £ £ 67 34 67 34 3,116 4,573 3,116 4,573 27,840 26,683 27,840 26,683 - 7,201 - 7,201 13,181 12,919 13,181 12,919 3,460 5,706 3,460 5,706 16,237 1,018 16,237 1,018 489,643 474,973 489,643 474,973 16,216 41,025 16,216 41,025 139,758 182,135 139,758 182,135 53,599 - - 79,566 (38) (42,406) 53,599 - - 79,566 (38) (42,406) (2,088) 4,290 (2,088) 4,290 41,982 55,546 41,982 55,546 - 1,680 - 1,680 14,799 6,244 14,799 6,244 500 5,561 500 5,561 5,151 - 5,151 - 755 21,780 755 21,780 2,631 3,445 2,631 3,445 5,083 4,662 5,083 4,662 - 988 - 988 10,318 9,787 10,318 9,787 27,606 31,507 27,606 31,507

869,854 938,879 869,854 938,879

£9,309 (2019 £Nil) expenditure on charitable activities was restricted in the current and preceding year.

33

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

9 Expenditure on charitable activities

Analysis of expenditure by activity:

Group and Charity – current year

Education Membership and Qualifications Publications Administrative costs roup and Charity – prior year Education Membership and Qualifications Publications Administrative costs	Direct costs Staff costs Shared costs Support costs Total (Governance) £ £ £ £ £ 18,332 187,136 96,741 16,045 318,254 35,751 144,860 74,886 12,420 267,917 31,023 135,299 69,943 11,601 247,866 - 22,348 11,553 1,916 35,817
	85,106 489,643 253,123 41,982 869,854
	Direct costs Staff costs Shared costs Support costs Total (Governance) £ £ £ £ £ 21,800 275,009 120,881 21,319 439,009 40,309 24,699 60,497 10,669 136,174 31,290 129,668 55,473 9,783 226,214 - 45,597 78,110 13,775 137,482
	93,399 474,973 314,961 55,546 938,879

Group and Charity – prior year

Total expenditure on charitable activities was £869,854 (2019: £938,879) of which £9,309 (2019: £Nil) was restricted and £860,545 (2019: £938,879) was unrestricted.

10 Governance costs

Committee meetings Miscellaneous governance costs Legal fees and trademark protection Trustees liability insurance Trustees training Audit fees Bank charges PayPal charges Subscriptions & licences (inc data protection) Grants in support of SDC regions Medals & plaques	Group Charity 2020 2019 2020 2019 £ £ £ £ 3,504 8,137 3,504 8,137 1,903 2,481 1,903 2,481 10,957 15,293 10,957 15,293 1,748 1,505 1,748 1,505 899 914 899 914 13,938 12,306 13,938 12,306 2,575 3,670 2,575 3,670 17 158 17 158 4,020 3,444 4,020 3,444 1,032 5,631 1,032 5,631 1,389 2,007 1,389 2,007
	41,982 55,546 41,982 55,546

34

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

11 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Corporation tax Current tax on profits for the year Adjustments in respect of previous periods Deferred tax Origination and reversal of timing differences Adjustments in respect of prior periods Taxation	Group Charity 2020 2019 2020 2019 £ £ £ £ 141,000 269,000 - - (3,288) 96 - - 5,000 (10,744) - - - - - -
	142,712 258,352 - -

Factors affecting tax charge for the year

The tax assessed for the year is lower (2019 – lower than) the standard rate of corporation tax in the UK of 19% (2019 – 19%). The differences are explained below:

Profit on taxable activities before tax Profit on taxable activities multiplied by standard rate of corporation tax in the UK of 19% (2019- 19%) Effects of: Expenses not deductible for tax purposes, other than goodwill amortisation and impairment Capital allowances for year in excess of depreciation Effect of tax rate charges Adjustments to tax charge in respect of prior periods Other timing differences leading to an increase (decrease) in taxation Distribution to parent made in Gift Aid Total tax charge for the year

2020 2019 2020 2019 £ £ £ £ 737,872 1,567,669 - - 140,196 297,857 - - 29,282 2,099 - - - - 645 8,087 - (3,288) 96 - (373) 2,463 - (23,750) (52,250) -

142,712 258,352 - -

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £6,600.

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

12 Net losses on Investments

Realised (losses)/gains Unrealised gains Loss on revaluation of investment property	Group Charity 2020 2019 2020 2019 £ £ £ £ (26,118) 3,164 (26,118) 3,164 46,293 102,752 98,130 (338,655) 46,293 102,752 98,130 (338,655)
	122,927 (237,361) 122,927 (237,361)

35

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

13 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management

Salaries and wages Social security costs Pension costs Redundancy costs	Group Charity 2020 2019 2020 2019 £ £ £ £ 1,278,026 1,407,682 413,712 388,036 133,358 144,127 38,514 37,023 130,513 - 132,878 5,386 37,417 - 37,895 5,386
	1,541,897 1,690,073 489,643 468,340

The group paid £4,163 (2019: £2,208) in respect of employer’s life assurance contributions and £8,120 (2019: £7,936) in respect of employer’s private medical contributions during the year. The charity paid £4,163 (2019: £2,208) in respect of employer’s life assurance contributions and £4,231 (2019: £3,092) in respect of employer’s private medical contributions during the year.

There were 4 employees of the group with employment benefits in excess of £60,000 (2019: 3).

Bands: £210,001 - £220,000 £110,001 - £120,000 £100,001 - £110,000 £70,001 - £80,000 £60,000 - £70,000	Group Charity 2020 2019 2020 2019 No. No. No. No. 1 1 - - 1 - 1 - - 1 - 1 1 - 1 - 1 1 1 1
	4 3 3 2

The number of staff who received in excess of £60,000 to whom retirement benefits are accruing under defined contributions schemes was 4 (2019: 3)

Employer’s pension contributions to defined contribution schemes in respect of the employees receiving in excess of £60,000	Group Charity 2020 2019 2020 2019 £ £ £ £ 58,371 51,598 20,364 8,750
	58,371 51,598 20,364 8,750

The key management personnel of the group comprise the trustees and the CEO of the charity and the directors of SDC Enterprises Limited. The total employee benefits of this group was £330,943 (2019 - £355,473).

None of the Trustees (2019: None) have been paid any remuneration or received any other benefits from the Charity. During the year 2 Trustees were reimbursed for general expenses incurred on behalf of the Charity to the sum of £135 (2019: £2,500 – 5 Trustees).

14 Staff numbers

aff numbers
Charitable activities Management administration	2020 2019 2020 2019 No. No. No. No. 8 9 8 9 35 37 4 4
	43 46 12 13

36

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

15 Intangible assets

Group Cost At 1 January 2020 As at 31 December 2020 Amortisation At 1 January 2020 Charge for the year As at 31 December 2020 Net book value As at 31 December 2020 As at 31 December 2019	Goodwill £ 209,000
	209,000
	163,717 41,800
	205,517
	3,483 45,283

16 Tangible fixed assets

Group cost or revaluation Cost at 1 January 2020 Additions Revaluation Disposals Cost at 31 December 2020 Depreciation at 1 January 2020 Charge for the year Eliminated on revaluation Depreciation on disposal Depreciation at 31 December 2020 Net book value at 31 December 2020 Net book value at 31 December 2019	Leasehold improvements Freehold property Furnishings and equipment Total £ £ £ £ 151,594 585,750 1,066,613 1,803,957 - - 70,228 70,228 - 217,750 - 217,750 - - (661,191) (661,191)
	151,594 803,500 475,650 1,430,744
	127,258 - 621,098 748,356 5,214 - 39,360 (39,360) 83,983 - 128,557 (39,360) - - (661,191) (661,191)
	132,472 - 43,890 176,362
	19,122 803,500 431,760 1,254,382
	24,336 585,750 445,515 1,055,601

37

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

16 Tangible fixed assets (continued)

Charity cost or revaluation Cost at 1 January 2020 Additions Revaluation Cost at 31 December 2020 Depreciation at 1 January 2020 Charge for the year Eliminated on revaluation Depreciation at 31 December 2020 Net book value at 31 December 2020 Net book value at 31 December 2019	Leasehold improvements Freehold property Furnishings and equipment Total £ £ £ £ 45,439 485,750 106,291 637,480 - - 5,441 5,441 - 217,750 - 217,750
	45,439 703,500 111,732 860,671
	41,798 - 49,806 91,604 1,818 39,360 (39,360) 12,419 53,597 (39,360)
	43,616 - 62,225 105,841
	1,823 703,500 49,507 754,830
	3,641 458,750 56,485 545,876

Freehold property was revalued in September 2020 by an external valuer. This was conducted by Walker Singleton Chartered Surveyors, at open market value in accordance with RICS Valuation Practice Statements of the latest edition of the RICS Valuation Professional Standards. Valuations are carried out on the basis of Market Value as defined in Valuation Practice Statements VPS 4.1.2.

The historical cost of the freehold property above at 31 December 2020 was £864,674 (2019 - £860,176).

17 Investments

nvestments
Quoted investments at market value Cash Investment in subsidiary SDC Enterprises Limited SDC International Limited Quoted investments at cost	At 1 January 2020 Additions Disposals Realised/ Unrealised gains At 31 December 2020 £ £ £ £ £ 946,779 345,452 (341,650) 20,175 970,756 23,444 - (13,100) - 10,344
	970,223 345,452 (354,750) 20,175 981,100
	445,600 - - - 445,600 99 - - - 99
	445,699 - - - 445,699
	768,714 796,298

A detailed listing of investments will be available at the AGM and is available to Members on request. The investments are held primarily to provide an investment return.

38

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

Investments in subsidiaries

SDC owns 100% of the £1 ordinary shares issued in SDC Enterprises Limited, the investment is £445,600 (2019 – £445,600). SDC Enterprises Limited (Company number 00433197) owns 100% of the £1 ordinary shares issued in Sam Weller & Sons Limited (Company number 00433197), the results of both companies are consolidated in these financial statements.

The SDC’s investment in SDC International (Company number – 04309970) represents £99 (2019 - £99) ordinary shares of £1 each which is wholly owned.

All subsidiaries are incorporated and registered in England and Wales.

The results of the trading subsidiaries for the financial period were as follows:

Turnover Expenditure Profit for the year Assets Liabilities Net assets	SDC Enterprises Limited Sam Weller & Sons Limited 2020 2019 2020 2019 £ £ £ £ 3,295,580 3,835,130 1,350,635 2,387,770 2,973,436 2,750,100 1,477,619 2,162,943
	322,144 1,085,030 (126,984) 224,827
	5,760,709 5,560,986 2,083,888 2,429,533 (1,400,321) (1,522,742) (235,442) (454,103)
	4,360,388 4,038,244 1,848,446 1,975,430

18 Investment Property

Group Valuation At 1 January 2020 Additions at cost Revaluations At 31 December 2020 Charity Valuation At 1 January 2020 Additions at cost Revaluations At 31 December 2020	Freehold Investment Property £ 1,780,345 13,948 (47,793)
	1,746,500
	Freehold investment property £ 239,250 4,498 102,752
	346,500

Group and Charity

Investment properties were revalued in September 2020 and October 2020 by an external valuer. This was conducted by Walker Singleton Chartered Surveyors, at open market value in accordance with RICS Valuation Practice Statements of the latest edition of the RICS Valuation Professional Standards. Valuations are carried out on the basis of Market Value as defined in Valuation Practice Statements VPS 4.1.2.

The historical cost of the freehold property above at 31 December 2020 was £2,415,219 (2019 - £2,401,271).

39

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

19 Stock

Raw materials and consumables Work in progress Finished goods for resale	Group Charity 2020 2019 2020 2019 £ £ £ £ 497,528 468,528 - - 179,921 175,632 - - 1,307,871 1,386,643 - -
	1,985,320 2,030,803 - -

Stock recognised in cost of sales during the year as an expense was £1,747,432 (2019 - £2,206,980).

Total carrying amount of stocks pledged as security for liabilities was £874,519 (2019 - £1,070,030).

20 Debtors

Amounts falling within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments	Group Charity 2020 2019 2020 2019 £ £ £ £ 608,467 1,050,524 27,914 32,657 - - 116,306 223,569 113,168 104,148 29,484 39,823 210,231 79,751 41,812 30,935
	931,866 1,234,423 215,516 326,984

A specific bad debt provision, amounting to £40,052 (2019: £42,694), has been raised in respect of amounts due from SDC EC. The bad debt recognised within the Statement of Financial Activity for the year was £ (2,088) (2019: £44,193).

21 Creditors: amounts falling due within one year

Amounts falling within one year Bank loans Trade creditors Taxes and Social Security Accruals and deferred income Other creditors	Group Charity 2020 2019 2020 2019 £ £ £ £ 61,601 85,411 - - 220,238 253,725 24,252 17,337 185,896 261,218 36,255 13,830 310,500 325,695 56,375 60,203 15,897 12,443 15,877 27,353
	794,132 938,492 132,759 118,723

Deferred income relates to income received for subscription and member fees which is not relatable to the year end 31 December 2020.

22 Creditors: amounts falling due after more than one year

Bank loans Deferred income	Group Charity 2020 2019 2020 2019 £ £ £ £ 808,098 873,809 - - 9,202 15,706 - -
	817,300 889,515 - -

A debenture is in place which includes a charge over all assets both present and future of the subsidiary SDC Enterprises Limited dated 9 February 2016, in respect of the bank loans held by the Group.

The bank loan above is secured on the property to which it relates to.

40

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

23 Loans

Bank loans: Amounts falling due within one year Amounts falling due 2-5 years	Group Charity 2020 2019 2020 2019 £ £ £ £ 61,601 85,411 - - 808,098 873,809 - -
	869,699 959,220 - -

24 Deferred tax

At beginning of year (Released)/charged during year At end of year	Group Charity 2020 2019 2020 2019 £ £ £ £ 58,000 68,744 - - 5,000 (10,744) - -
	63,000 58,000 - -

The provision for deferred taxation is made up as follows:

Accelerated capital allowances Other timing differences Total	Group Charity 2020 2019 2020 2019 £ £ £ £ 67,000 68,300 - - (4,000) (10,300) - -
	63,000 58,000 - -

41

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020

Notes to the Financial Statements (continued)

25 Funds Unrestricted funds Accumulated funds Designated funds Colour experience Centenary educational trust Tordoff memorial Unfunded projects reserve Total designated funds Funds retained in trading subsidiaries Restricted funds George Douglas Lecture Turner Scholefield award Veronica Bell award Future Textile Dyers fund Dyers Co. Charitable Trust Permanent endowment funds George Douglas Lecture Turner Scholefield Award Veronica Bell Award Revaluation Reserve Total funds – Group Deduct funds retained in trading subsidiaries Total funds – Charity	Fund balance Gains and Net movement Fund balance 01/01/2020 Income Expenditure Transfers Losses In funds 31/12/2020 £ £ £ £ £ £ £ 2,304,771 998,942 (874,153) (102,318) 59,535 82,006 2,386,777 7,200 - (7,387) 187 - (7,200) - 72,113 - (3,115) - - (3,115) 68,998 96,385 - - - - - 96,385 166,669 - - 118,315 - 118,315 284,984
	342,367 - (10,502) 118,502 - 108,000 450,367
	4,325,379 3,990,575 (3,854,075) 136,500 4,461,879
	6,972,517 4,989,517 (4,738,730) 16,184 59,535 326,506 7,299,023
	2,300 8,509 615 - - - - - - (570) 1 (615) - - - (570) 1 (615) 1,730 8,510 - - 40,000 (9,309) - - 30,691 30,691 - 15,000 - (15,000) - - -
	11,424 55,000 (9,309) (16,184) - 29,507 40,931
	2,128 - - - - - 2,128 2,497 - - - - - 2,497 12,876 - - - - - 12,876
	17,501 - - - - - 17,501
	- - - - 320,502 320,502 320,502
	7,001,442 5,044,517 (4,748,039) - 380,037 676,515 7,677,957
	(4,325,379) (3,990,575) 3,854,075 - - (136,500) (4,461,879)
	2,676,063 1,053,942 (893,964) - 380,037 540,015 3,216,078

42

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020

Notes to the Financial Statements (continued)

25 Funds – previous year Unrestricted funds Accumulated funds Designated funds Colour experience Centenary educational trust Tordoff memorial Unfunded projects reserve Total designated funds Funds retained in trading subsidiaries Restricted funds Fixed asset fund George Douglas Lecture Turner Scholefield award Veronica Bell award Cotton Industry War Memorial fund Dyers Co. Charitable Trust Permanent endowment funds George Douglas Lecture Turner Scholefield Award Veronica Bell Award Revaluation Reserve Total funds – Group Deduct funds retained in SDC Enterprises Ltd Total funds – Charity	Fund balance Gains and Net movement Fund balance 01/01/2019 Income Expenditure Transfers Losses In funds 31/12/2019 £ £ £ £ £ £ £ 2,453,463 960,695 (819,932) 37,759 (327,214) (148,692) 2,304,771 12,234 - (5,034) - - (5,034) 7,200 76,789 - (4,676) - - (4,676) 72,113 96,385 - - - - - 96,385 219,555 - (121,646) 68,760 - (52,886) 166,669
	404,963 - (131,356) 68,760 - (62,596) 342,367
	3,241,820 5,357,070 (4,273,511) - - 1,083,559 4,325,379
	6,100,246 6,317,765 (5,224,799) 106,519 (327,214) 872,271 6,972,517
	37,759 - - (37,759) - (37,759) - 2,300 8,509 615 - - - - - - - - - - - - - - - 2,300 8,509 615 23,760 15,000 15,000 15,000 - - (38,760) (30,000) - - (23,760) (15,000) - -
	87,943 30,000 - (106,519) - (76,519) 11,424
	2,128 - - - - - 2,128 2,497 - - - - - 2,497 12,876 - - - - - 12,876
	17,501 - - - - - 17,501
	313,660 - - - (313,660) (313,660) -
	6,519,350 6,347,765 (5,224,799) - (640,874) 482,092 7,001,442
	(3,241,820) (5,357,070) 4,273,511 - - (1,083,559) (4,325,379)
	3,277,530 990,695 (951,288) - (640,874) (601,467) 2,676,063

43

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

25 Funds (continued)

The specific purpose for which the funds are to be applied are as follows:

Designated Funds:

Colour experience

The Colour Experience combines an interactive gallery, hands on demonstrations and workshops designed to meet the STEM requirements of students across the age range from nursery to university.

Centenary Educational Trust Fund

Established in the SDC’s centenary year (1984) to provide finance to stimulate the recruitment of highly talented and well-motivated young people onto full-time courses in colour science and technology.

Tordoff Memorial Fund

Established in 1992 in memory of the late Dr Maurice Tordoff, former Chief Executive and General Secretary of the SDC. To provide finance to support students undertaking part-time education in colour science and technology.

Restricted Funds:

Future Textile Dyers

To support the apprenticeship program FTCC TCC, this money has been received from Worshipful Company of Dyers.

Dyers Co. Charitable Trust Fund

As restricted fund from the Worshipful Company of Dyers specifically in relation to support of the ASDC scheme.

George Douglas Lecture

Represents income arising from the George Douglas Lecture permanent endowment fund and the use of that income.

Turner Scholefield Award

Represents income arising from the Turner Scholefield Award permanent endowment fund and the use of that income.

Veronica Bell Award

Represents income arising from the Veronica Bell Award permanent endowment fund and the use of that income.

Cotton Industry War Memorial Fund

A designated fund for support from the Cotton Industry War Memorial Trust specifically in relation to transport for the Colour Experience and development of the VLE for the SDC Qualifications.

Permanent Endowment Funds:

George Douglas Lecture

The Lecture was started in 1948 with a fund established by the Bradford Dyers’ Association Ltd to finance a biennial memorial lecture. The lecture to be on a subject related to the dyeing and finishing of textiles. The fund now allows for promoting education in colour science and technology by the holding of public lectures.

Turner Scholefield Award

A medal, awarded annually, to an Associate of the SDC, under the age of 33 who has made the most notable contribution to the science and technology of colouring matters and their application.

Veronica Bell Award

Presented to the winner of the student International Design Competition in memory of the SDC’s first lady president, Veronica Bell.

Revaluation reserve

To record any gains from revaluations of freehold property and investment property.

44

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

26 Analysis of net assets by funds – Group

At 31 December 2020 Intangible fixed assets Tangible fixed assets Investments Investment property Current assets Current liabilities Long term liabilities Provisions for liabilities	Permanent Revaluation Unrestricted Funds Restricted Funds Endowment Funds Reserve Funds Total Funds £ £ £ £ £ 3,483 - - - 3,483 1,254,382 - - - 1,254,382 981,100 - - - 981,100 1,746,500 - - - 1,746,500 5,308,492 40,931 17,501 - 5,366,924 (794,132) - - - (794,132) (817,300) - - - (817,300) (63,000) - - - (63,000)
	7,619,525 40,931 17,501 - 7,677,957

Analysis of net assets by funds – Group – previous year

At 31 December 2019 Intangible fixed assets Tangible fixed assets Investments Investment property Current assets Current liabilities Long term liabilities Provisions for liabilities	Permanent Revaluation Unrestricted Funds Restricted Funds Endowment Funds Reserve Funds Total Funds £ £ £ £ £ 45,283 - - - 45,283 1,055,601 - - - 1,055,601 970,223 - - - 970,223 1,780,345 - - - 1,780,345 5,007,072 11,424 17,501 - 5,035,997 (938,492) - - - (938,492) (889,515) - - - (889,515) (58,000) - - - (58,000)
	6,972,517 11,424 17,501 - 7,001,442

27 financial instruments

Financial assets Financial assets measured at fair value through SOFA Financial assets measured at amortised cost Financial liabilities Financial liabilities measured at amortised cost	Group 2020 2019 £ £ 970,756 946,799 3,177,183 2,948,887
	4,147,939 3,895,686
	1,459,145 1,796,872
	1,459,145 1,796,872

45

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Notes to the Financial Statements (continued)

28 Commitments under operating leases – lessee

At 31 December 2020 the group and the charity had future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years Later than five years	Group Charity 2020 2019 2020 2019 £ £ £ £ 128,191 124,303 21,816 19,803 482,878 582,694 53,712 49,028 22,958 5,353 22,958 5,353
	634,027 712,350 98,486 74,184

The amount of non-cancellable operating lease payments recognised as an expense during the year was Group £130,433 (31 December 2019 - £125,611) and Charity £24,058 (31 December 2019 £21,111).

Commitments under operating leases – lessor

At 31 December 2020 the group and the charity had future minimum lease payments receivable under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years Later than five years	Group Charity 2020 2019 2020 2019 £ £ £ £ 8,250 37,110 8,250 37,110 - 8,250 - 8,250
	8,250 45,360 8,250 45,360

The amount of contingent rents recognised as income during the year was £62,161 (31 December 2019 - £55,657).

Capital commitments £Nil (2019: £15,866)

29 Related party transactions

During the year the Charity entered into the following transactions with related parties:

Company

Other than transactions disclosed above, the company’s other related transactions were wholly owned subsidiaries and so have not been disclosed.

30 Ultimate Control

The society of Dyers & Colourists is a Charitable body. SDC Voting Members elect the Trustees to be voting members of the Society’s Board, and the trustees ultimately control the charity.

46

The Society of Dyers & Colourists (SDC) Year ended 31 December 2020 Non-statutory pages

Members of the Society’s Committees as at end August 2021

Audit Committee

• Stuart Wilkinson – HonSec & Chair

• John Hansford – President

• Susan Bolton – Imm. Past President

• Ullhas Nimkar – President-elect

• Debbie Bamford – HonTreas

• Mick Catterall – HonTreas Designate

• Vien Cheung

• Peter Duffield

• Paul Santokhi

Finance Committee

• Debbie Bamford – HonTreas & Chair

• John Hansford – President

• Susan Bolton – Imm. Past President

Medals Committee

• Stuart Wilkinson – HonSec & Chair

• All members of both the Audit Committee

  • & Nominations Committee

• Trevor Larkins – Vice President (Projects)

• Stuart Wilkinson – HonSec

• Mick Catterall – HonTreas Designate

• Chris Carr – Trustee

• Vien Cheung

• John Easton

• Mark Yare - MD SDC Enterprises

• Kathryn Hampshire – SDC Enterprises

Projects Evaluation Group (PEG)

• Trevor Larkins – Vice President (Projects) & Chair

• Chris Carr – Trustee

• Ian Lewis – Trustee

• Kate Wells – Trustee

Nominations Committee

• Stuart Wilkinson – HonSec & Chair

• John Hansford – President

• Nilkaneth Desai

• Peter Duffield

Education, Qualifications & Accreditation Board (EQAB)

• Stephen Westland – Chair

• Parikshit Goswami - Trustee

• Ian Lewis – Trustee

• Marina Bloj

• Christine Holdstock

Membership Committee

• Stuart Wilkinson – HonSec

• Ullhas Nimkar – President-elect

• • Kathy Dickinson

• Sarah Gotheridge

• Sarah Moses

• • Alexandra Palmer

• Vicky Price

• Chelsea Sullivan

• • Fiona White

• Georgie Worker

• Jinshong Shen

• Kevin Tapley

• Roger Wardman

Future World Working Party of the Society’s Board

• John Hansford – President & Chair

• Ullhas Nimkar – President-elect

• Stuart Wilkinson - HonSec

• Debbie Bamford – HonTreas

• Mick Catterall – HonTreas Designate

• Gavin Thatcher – Trustee & Chair of Board

• Chris Carr – Trustee

• Paul Hamilton – Trustee

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Publications Committèè Roger Wardman-chair Andy Towns- Editor in chief Richard Blackburn- Review Editor Adrian Able Vien Cheung Robert christie John Easton Laura F￿nklin David Lewis James Nobbs Muriel Rigout Stephen Westland Laura Wood Jenny Cosham - Wileys Anna Smart- Wileys Sarah Watson- Wiley5 Colour Ind•x Pi8m•nt & Solv•nt Oy•s Board Adrian Able- Chair Stuart Wilkinson- Honsec Oebbie 8amford- HonTreas Terry Detrie Georg Doering Harold F￿eMan Caroline Germain Ingrid Gesing Geoffrey Hallas Ana Lacoma Tatiana Letcheva Xiang Ma Fary Stra55ell Mark Vallely Oavid Wawer-CPMA Diana Wyman- AATCC Karen skorski- SDC Enterprises Chris Waring- SDC Enterprises Publlcatlons Awards Commlttee Kelvin Tapley - Chair Roger Wardman Andy Towns- Editor in Chief John Easton Ram Sabnis David Lewis Peter Rhodes Mike Bartle JinsonJ Shen Stephen Westland John Prov05t David Hinks Martin Ferus-comelo