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2023-12-31-accounts

The Society of Dyers & Colourists (SDC)

Annual Report &

Financial Statements

as revised 21 May 2024

For the Year ended 3 ~~1~~ [st] December 2023

Charity Number 212331 Royal Charter Number RC000567

The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

Contents

Foreword by SDC Chief Executive Officer ........................................................................................... 3 2023 SDC Performance Summary ....................................................................................................... 5 Society of Dyers and Colourists Annual Report .................................................................................. 7 Honorary Officers ............................................................................................................................ 7 Trustees during 2023 ...................................................................................................................... 7 Co-opted Board Members .............................................................................................................. 7 Chief Executive Officer .................................................................................................................... 7 Principal Office ................................................................................................................................ 7 Auditors ........................................................................................................................................... 8 Bankers............................................................................................................................................ 8 Investment Managers ..................................................................................................................... 8 Governance ..................................................................................................................................... 8 Charitable Objectives ...................................................................................................................... 8 Structure and Governance .............................................................................................................. 8 SDC Performance .......................................................................................................................... 11 The SDC Trading Companies ......................................................................................................... 12 Charity Financial Activity ............................................................................................................... 13 Environmental, Social and Governance Report ............................................................................ 15 Reserves Policy .............................................................................................................................. 16 Project development 2023 ........................................................................................................... 17 Review of Activities ....................................................................................................................... 18 Investment Policy .......................................................................................................................... 28 Fundraising .................................................................................................................................... 29 Risk Assessment ............................................................................................................................ 29 Human Resources and Equality, Diversity and Discrimination Policy ........................................... 29 Data security ................................................................................................................................. 29 GDPR ............................................................................................................................................. 29 Health and Safety .......................................................................................................................... 30 UK Pension Auto-enrolment ......................................................................................................... 30 Remuneration Policy ..................................................................................................................... 30

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

Foreword by SDC Chief Executive Officer

The year 2023 was very much about moving into the new normal post covid for the Society, as in person events started to resume and the SDC Staff started to travel once again to ITMA in Italy, the SDC Hong Kong Conference and we saw the holding of the first UK Technical Conference.

In 2022’s Annual Report I also referred to global events that are impacting everyone, and in that respect 2023 continued, not only unabated, but with even more global disruption and uncertainty. The conflict in Ukraine continued and was joined by other Middle East conflicts. Their existence affected items such as the prices of almost everything in inflation, to my flight to and from Hong Kong being much longer in time, and more costly, than in the past due to routes that have to be taken.

On a positive note, the financial markets were less thrown by these international events in late 2023 than in the prior year and SDC investments actually grew in value, as opposed to the huge fall in value in 2022. Once again though the SDC only utilised dividends from these financial investments thus allowing the core financial investment value to grow.

The SDC Governance in 2023 was still very much in virtual mood, with attendance at committees now almost exclusively by remote attendance. This saved attendees time and made their lives more efficient, whilst reducing SDC expenses and avoided long running UK train strikes for committee attendees. However, some discussion topics, were less fruitful in my view.

Attendance at the ongoing SDC Webinar programme reduced from the very large numbers during Covid, as people had more to attend to in their workplaces and social lives. The SDC Webinar programme remained in place though, with each webinar recorded. In 2023, unlike many other organisations, the SDC did not cancel a single Webinar due to lack of registrants and we now, by the end of March 2024, have a catalogue of 38 Webinar Recordings on the SDC website (access is free of charge to SDC Members, so this is also being used as a driver to gain new members).

The Annual Report does, and should, look forward, as well as back over the past year. 2024 is a significant year for the SDC in that it is the 140[th] year of the Society and the 100[th] year of the Colour Index™. Hence, 2024 is going to be a busy year with an expanded AGM also covering displays and presentations on SDC activity and plans. The year has in store three conferences: an International Conference in Manchester in June; a UK Technical Conference in Bradford in October; plus, an International Conference in Leeds the SDC are hosting for the Dyes in History and Archaeology Group.

The Society has also been developing a renewed Strategy, commencing with a Board Day in November 2023 followed up by a more detailed development day for SDC Staff and Committees in April 2024. It is intended to provide many communication and sharing opportunities on this Strategy as 2024 progresses.

The work on the revision of the Society’s Royal Charter, By-laws and Rules is also progressing at an ever-increasing pace following a very long period of review by a task group of the Audit Committee. Initial draft changes are now with legal experts to ensure all is covered and in the appropriate form and relevant Governance document. SDC Members will receive many opportunities to understand these changes in the coming months before also being asked to vote on the proposed changes.

At the end of 2022 the SDC website was completely renewed and re-launched in early 2023 but, as anyone who has been involved in websites will be aware, a launch of a new site is not the end, but

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The Society of Dyers & Colourists 2023 Annual Report & Financial Statements

just the start! Much of the past year has been spent on getting the member experience smoothened and enhanced. The Digital Archive for example now has a much-improved search and categorisation, with almost 2,750 items for members to view (some items are open to non-members also). This is not just about more items, but about enhancing those items. Past Medal awardees are now being listed with their citations and images being added. All our Past Presidents are listed, and we are adding images to them also, along with links to their medals awarded and notes on their background where available.

We have also started work on the SDC Textile Collection in early 2024. This will catalogue and digitise items held by the SDC in Perkin House, many of which are ‘back home’ there after many years of being away. In time members will have access to the collection as items are put online in a new purpose designed database, plus there will be growing opportunities to view and access items in person. As this work proceeds, we have been astounded at the historical gems found in the SDC collection in terms of their age, significance and condition, so be prepared to be amazed at them when we make them accessible to many more people.

November 2023 saw our Annual Awards and Celebration Dinner in York once again. Immediately post the event and to the end of January 2024 members were asked for feedback on the venue, timing and other aspects. The responses were very varied and the ability to make changes limited by available time and other events. In 2024 these events will be slightly earlier in November, but a very busy month of October, for both the SDC and the wider industry, prevents a move of the event any earlier this year. Accommodation suggestions have already been provided to members so they can pre-book at reasonable rates, this being based on feedback from the survey.

I look forward to your participation in online and in-person events across this significant year for the Society and encourage you to share the schedule of activities with others and encourage them to join the SDC community.

Dr Graham Clayton Chief Executive Officer.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

2023 SDC Performance Summary

SDC Membership

SDC Course Participants

Office Rental within Perkin House

SDC Media Performance

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

SDC Communications

Environmental, Social and Governance (ESG)

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

Society of Dyers and Colourists 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 2023. 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. Financial performance is continually under review against these. 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 Ullhas Nimkar (appointed AGM 2022 to AGM 2023) President Chris Carr (appointed AGM 2023 to AGM 2024) Immediate Past President John Hansford (from AGM 2022 to AGM 2023) Immediate Past President Ullhas Nimkar (from AGM 2023 to AGM 2024) President Elect Susan Kay-Williams (appointed AGM 2023) Honorary Secretary Stuart Wilkinson (appointed AGM 2018 until AGM 2021 and reappointed AGM 2021 until AGM 2024) Honorary Treasurer Michael Catterall (appointed AGM 2021 to 2024)

Trustees during 2023

Chris Carr – appointed at the AGM 2018 and re-appointed AGM 2021 until AGM 2024[#] Ela Dedhia – appointed at the AGM 2022 and retires AGM 2025 Eamon Furey – appointed at the AGM 2022 and retires AGM 2025 Parik Goswami – appointed at the AGM 2020 and re-appointed AGM 2023 until AGM 2026 Linda Hodgson - appointed AGM 2023 until AGM 2026 Ian Lewis - retired by rotation AGM 2020 and re-appointed until AGM 2023 Siva Pariti – appointed at the AGM 2022 and retires AGM 2025 Adam Pursell – appointed at the AGM 2023 until AGM 2026 Paul Santohki – appointed at the AGM 2022 and retires AGM 2025 Gavin Thatcher – appointed at the AGM 2018 and re-appointed AGM 2021 until AGM 2024 Katherine Wells – appointed at the AGM 2020 and re-appointed AGM 2023 until AGM 2026*

*Denotes the nine trustees on the Society’s Board post AGM 2023

Chris Carr stood down as a Trustee at AGM 2023 to enable him to take up the post of SDC President as a person is unable to hold more than one Office.

Co-opted Board Members

Paul Hamilton was appointed Vice-President (Projects) at the AGM 2022 and was re-appointed at AGM 2023 for a further year.

Chief Executive Officer

Graham Clayton

Principal Office

Perkin House, Longlands Street, Bradford, BD1 2LU

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

Auditors

Thomas Coombs, 3365 The Pentagon, Century Way, Thorpe Park, Leeds, Yorkshire, LS15 8ZB NB. The previous Auditors, Watson Buckle Limited, were re-appointed at the AGM 2023 but on 19 October 2023 informed the SDC that Watson Buckle were withdrawing from the Charity market. A rapid search for new Auditors late in the year was successful in the appointment of Thomas Coombs, established in 1878 with a long-standing charity support portfolio.

Bankers

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

Investment Managers

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

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 electronic media. The charitable objectives are contained within the Royal Charter of 1963 and are:

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 on the Society’s Board (ie trustees), rounded up to the nearest whole number, present either in person or electronically in real time (Rule 115).

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

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 Society’s finances (Rule 48). The composition of the Finance Committee and its appointment is made annually by the Society’s 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 and Strategic Plan. 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.

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 main website and 3 new Governance training sessions were held in 2023, with the recordings available for members of the Board, Audit and Finance Committees online.

Governance Review

A Governance Task Group Working Party of the SDC Audit Committee has spent some considerable time examining the SDC Royal Charter, By-laws and Rules. The Working Party was formed by the SDC Audit Committee in December 2020 and concluded its work, reporting to a meeting of the SDC Audit Committee, in February 2024. Three fully revised Governing documents are now being drafted by the Society’s legal advisors, with the work almost complete in April 2024. These documents will then be presented to the Society’s Board and, if accepted, communicated at many opportunities to SDC Members before being taken to a specific General Meeting of SDC Voting Members for final approval following which the Royal Charter and By-laws will be submitted to the Privy Council for their approval.

SDC Committees

The following committees comprise the SDC Governance bodies:

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

It is very much appreciated, and here recognised, that these committees operate due to the substantial input of volunteers. The number of committee meetings above conceals the duration of the volunteer input with preparation as well as the meetings themselves.

All SDC Committees meet within Microsoft Teams. This means there is a single committee meeting place and depository of Agendas, meeting papers and Minutes for each meeting and future reference.

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 conceals the fact that more than a few volunteers are on several different committees. The SDC website lists all SDC Staff and all SDC Committee members (91 in total in 2023) as one Team (with the ability to filter by committee) which is appropriate, as it is the whole Team of staff and volunteers who deliver the Society’s activity and impact.

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. Such volunteers are typically exceedingly rich in experience whilst also extremely welcoming of new and early career volunteers. The committees of regions are now also listed on the SDC website under ‘About Us’ and ‘The Team’ as they do form part of the whole SDC Team.

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 quite 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 had not been adhered to for many years, but the Governance of the Society is ensuring success in getting this schedule reinstated. Regions have held their own AGMs and provided a Statement of Accounts but at different times across the year. In 2024 the UK regions will all have held their AGMs ahead of the main SDC AGM, as will have many international regions.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

SDC Performance

Mission

Educating the world in the science of colour.

Objectives

The objectives of the SDC for 2023 were to:

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

2) To Collaborate with SDC members and the wider colour community, whilst developing the SDC Communities for the SDC future world.

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

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

5) To Build and deliver a sustainable business model 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.

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:

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

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.

The SDC Trading Companies

SDC Enterprises Group Ltd

The consolidated results of SDC Enterprises Group (incorporating SDCE Enterprises Limited (SDCE) and Sam Weller & Sons Limited (SW)) show a small reduction in revenue, < 1%, as 2nd half-year trade returned to more normal levels after the post Covid ‘mini boom’. Margins were reduced through the combined impact of cost inflation and returning exhibition costs, running ahead of sales price inflation. Despite this, pre-tax profitability remained healthy.

As SDCE looked to refresh its branding, and security identification, with a simplified logo, the 20-year-old licence agreement with the Society for use of the previous version of the Society’s logo ended in February 2023. Funding to the Society was maintained, at 10% above the 2022 level, by an increase in Gift Aid. SDCE remain fully committed to supporting the Society’s charitable activities, though the Board of SDCE must balance this distribution of resources versus the needs of the long-term development plan for commercial activities. Total funds provided to the Society, by SDCE, in 2023 were £550,000, or 71 % of the Society’s total income (excluding revaluations).

During 2023 the acquisition of Northern Dyers (ND) was completed, providing strategic growth opportunities in wet processing activities, and enabling the reallocation of space within the Spinksmire Mill site. This ability to reallocate space is key to maximising the efficiency and cost effectiveness of developing the entire site. Work began on a renovation to a unit for use in the production of Multifibre. Renovations work will accelerate in 2024 with the refurbishment of the former Quarmby and Sykes dyehouse, to accommodate ND. This will allow for limited modernisation and increased scope of activities at ND, whilst freeing the optimal site for building a new weaving shed for SW. This property development and new capital plant requirement will require significant new investment from SDCE. SDCE aims to fund this from retained profits and a minimal amount of borrowing.

SDCE’ Board judge that the pressure on SDCE’ resources should not reduce the ability to maintain its funding of charitable activity. For 2024 a 9% increase in funds provided to the Society has been agreed, subject to trading results. The Board also recognise that, any medium-term risk to funding charitable activity, is also negated by the considerable reserves the Society has built up for that specific purpose.

The Society’s total equity in SDCE Group remains strong, with shareholder funds standing at £7,696,548 versus the Society’s investment of £445,600.

The Directors are confident that the implementation of the commercial strategy, as agreed with the Society, is delivering tangible results. The ongoing investment is affordable and will provide long-term growth for SDCE, whilst protecting and enhancing the Society’s shareholding value in the Group.

Mark Yare March 2024

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

SDC International Ltd

The SDC wholly owned company, SDC International Ltd is UK based and 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 activity was severely curtailed in 2020, just as it was planned to grow, due to the pandemic. In following years there were conferences and exhibition activity planned and arranged, but again cancelled due to the pandemic. In 2023 SDC International was evident, through Indian registered SDC International India pvt Ltd, at large Indian exhibitions and conferences and SDC necessary financial support started to reduce. A plan being delivered in 2024 exists for further exhibitions and conferences that will result in repayment of the monies owed to the Society by SDC International and also further contributions to the work of the Society over and above that in the longer term.

2023 saw organisation of income realising Indian exhibitions in Ludhiana and Tirupur by SDC International India pvt Ltd. In 2024 SDC International India pvt Ltd is organising a large exhibition and conference in Dhaka, Bangladesh in November entitled C3M-Expo showcasing Chemicals, Compliance and Machinery. This event is forecast to see SDC International Ltd start to provide an income stream to the Society.

Charity Financial Activity

The Society’s Board monitor monthly the financial activities of the charity via the Finance Committee and SDC Management Accounts. The Finance Committee and Society’s Board take appropriate action as necessary.

Investments

Over the year 2023 the Charity’s net downward movement of all funds was less than 2022, being £106,642 lower 2023 vs 2022 ( cf £207,298 lower in 2022 cf 2021). Charity income was up £54,180 in 2023 at £801,889 although expenditure rose by £115,671.

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. The 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 that 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 investment objective of the SDC with Brewin Dolphin managed funds remains unchanged:

“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.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

The trustees would also like the portfolio to produce an income to assist in the smoothing of the charities annual cash flow.”

Net losses on Brewin Dolphin managed investments in 2022 was £139,087 which turned to modest gains of £41,348 in 2023.

Quoted investments at market value, plus cash held associated with those investments, rose £35,060 in 2023. The total value of Brewin Dolphin managed investments on 31st December 2022 was £940,637, hence this was 3.7% growth in 2023. In addition, these investments realised dividends of £26,624, resulting in total SDC return on these investments managed by Brewin Dolphin of 6.6% over the year.

The audit requirement for the annual revaluation of the Perkin House asset, the outcome of which is based on market prices, produced little change this past year. In 2022 the total value of Perkin House was assessed to be £1,000,000, with £310,000 of that in the investment (i.e. rented or immediately rentable) part of the building. By the end of 2023 the total value of Perkin House was given as £1,039,721, hence a 4% annual growth in total value of the building asset.

Perkin House rental income has risen from mid-2015, with rental income to the SDC rising to £81,741 in 2023, hence up 12% on 2022 and up 21% from the 2021 income levels. The investment portion of the Perkin House value above is given as £320,866 at 31[st] December 2023, making rental income a 25% Return on Investment.

The largest SDC investment is in SDC Enterprises Group Ltd, the wholly owned subsidiary of the SDC Charity. The investment value of SDC Enterprises Ltd has, for many years, been given in the annual accounts as £445,600 and this has not changed. SDC Shareholder funds in SDC Enterprises Group Ltd now are at £7,696,548. In 2023 the Charity received from SDC Enterprises Group Ltd Licence Fee of £42,708 plus Gift Aid at £507,292, making a total return of £550,000 (£5 0 0, 000 in 2022). This equates to 7% of shareholder funds.

Other Financial Activity

Auditors examining 2022 accounts recommended a VAT review. The SDC moved some years ago, at HMRC behest, to partial exemption of VAT. The calculations of such are not simple and a regular review is recommended and was undertaken with support of Watson Buckle VAT experts in early 2022. VAT submissions since have adhered to the recommendations from that VAT review, including increased payments to HMRC in SDC VAT submissions.

Membership income was effectively static in 2017 after several years of gradual decline. Partly due to membership subscription price rises, membership income was £41,156 in 2018 and in 2019 £45,042. In 2020 it rose marginally to £46,039 but in 2021 membership income fell to £39,706, largely due to companies not renewing memberships. The Society’s Board also made the price for Individual NonVoting and Individual Voting membership identical to encourage members to upgrade at no additional cost. Membership income in 2022 amounted to £39,639 and in 2023 rose only marginally to £40,097. Hence, 2023 membership income was up annually by only 1% and was at a level 12% below the 2020 peak of recent years. As the chart below shows though the overall trend is therefore now one of arresting the decline in membership income, despite the harmonisation of Voting and Non-Voting individual membership subscription rates.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

----- Start of picture text -----
Membership income
£50,000
£45,000
£40,000
£35,000
£30,000
£25,000
£20,000
£15,000
£10,000
£5,000
£-
2018 2019 2020 2021 2022 2023
----- End of picture text -----

Membership renewals are now enabled via the SDC website and members can pay by debit or with credit card and set payments to auto-renew. Each membership subscription also has monthly, annual and every three-year option for payment. It has been very promising to see that many members are renewing with auto-renewal enabled.

Books sales income in 2023 was largely supported by Malcolm the Weaver book sale income which was up slightly at £4,340. The aged SDC textbook stock is now a very small income stream to the SDC, and the new titles are all produced and sold via Wiley Publishing. By 2023 many SDC books were made available via the SDC website as eBooks, reducing the price for them (and reduced further for current SDC Members) and also permitting immediate access to the eBook. This has made this aged book stock available at lower prices to those interested in accessing their content.

Salary costs of the charity (including social security costs and pensions) rose only marginally (<0.5%) in 2023 when Charity costs amounted to £370,994 (see note 13 of the Accounts). Whilst salaries and pension costs rose through annual pay rises, social security costs fell with changes in Government policies. Charity staff numbers remained unchanged throughout 2023.

In 2020 the global pandemic hit SDC Enterprises Group Ltd sales. Consequently, the SDC parent charity received zero Gift Aid in 2021. In 2022 the trading activities of the SDC Enterprises Group Ltd rose income by half a million to £6,148,251, falling again by almost 1% in 2023 to £6,100,943. Associated trading costs rose in 2023 by almost 12% to £4,880,886. In 2023 SDC Enterprises Group Ltd assimilated into the Group fully the acquisition of Northern Dyers on its Spinksmire site. This also changed a tenant in Northern Dyers into a part of the Group, hence the reclassification of Group fixed assets in Note 16 of the Accounts.

Environmental, Social and Governance Report

Energy Usage and Emissions

In 2023 Perkin House consumed 56,699 kWh of electricity – this included the SDC and all Perkin House tenants. The supply of electricity in 2023 was via 3 different energy companies: Valda Energy (8% of annual consumption); Opus Energy (9% of annual consumption) and Drax Power Station (83% of annual consumption).

In September 2023 a Resource Efficiency Audit was undertaken of Perkin House via the West Yorkshire Combined Authority Sustainability Support Service. That report was based on data that extended back

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

beyond January 2023 and placed the electricity consumption of Perkin House at 50,316 kWh, so 11% lower than just 2023 data. The predicted annual CO2 generation from that level of electricity usage was 10.2 tonnes.

Electricity in 2023 supplied through Drax Power Station, Selby was, according to a Drax statement, 92.1% from renewable resources (cf an average for all UK suppliers of 40.8%) with 6.6% being of the supply mix from natural gas, 0.6% from coal, 0.2% from nuclear and 0.5% from other fuels. Drax electricity supply generated 34g of CO2 per kWh cf the average of 186g CO2 per kWh for all UK suppliers. The Drax energy usage alone (which is 83% of Perkin House consumption) therefore would produce just 1.6 tonnes of CO2 annually. The result is a much lower CO2 generation figure (84% lower) than predicted.

Gas consumption in 2023 from actual gas invoices amounted to 56,699 kWh leading to 10.4 tonnes of CO2 emissions. Gas use is entirely connected to Perkin House heating via two gas boilers. Measures to reduce gas consumption and hence related CO2 are under evaluation.

The CO2 survey suggested that 5,820 kWh pa of gas generated heat could be saved from improved insulation on the roof-based air handling system on Perkin House and this work has just been completed in Q1 of 2024. This kWh reduction of course also saved heating costs and reduces CO2 emissions. The installation of a solar power system is also being scoped now that solar panels have improved, and electricity costs have risen dramatically.

Waste & Recycling

The Perkin House waste is collected weekly, and cardboard is separated and sent for recycling. Other waste is sent as mixed waste but sorted and graded by the collection service providers.

Resource Consumption

The SDC has largely reduced the consumption of many of the resources historically used. Integral to this has been the move to digital provision of many aspects of the SDCs activities. This has, for example, hugely reduced the need for photocopier paper and ink, as well as a huge reduction in travel to meetings. Post Covid the level of online meetings continues to be high and is often the preference of those with whom we are meeting. A consequence of this has been a huge reduction in travel and subsistence costs. In 2023 efforts were made to travel more and meet more people face to face, but, even with the ITMA exhibition in Italy in June 2023, travel was at a much lower level than in prepandemic years. SDC Committee meetings are also now attended online by most participants whereas pre-pandemic most would attend in person.

Travel costs in 2023 were 16% higher than in 2022 at £16,621. However, this is historically low with 2019 travel costs being £41,025. Travel via public transport is used whenever practically possible and now online meetings, thus reducing time, cost and pollution from travel, are sometimes even the first option as opposed to an alternative option.

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.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

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.

The Group reserves are represented by the Group funds of £10,021,215 on 31[st] December (2022 - £9,564,319). Group cash at bank and in hand, on 31[st] December 2023, amounted to £3,433,387 (2022 - £3,750,454) whilst the cash at bank and in hand for the Charity alone was £260,502 on 31[st] December 2023 (£353,492 on 31[st] December 2022). Total resources expended by the charity alone in 2023 were up 14% at £955,879 (2022 £840,208), although removing expenditure undertaken from restricted funds from this figure shows an underlying rise of 12%.

The SDC had free cash at bank and in hand (not designated for current or future PEG Projects), plus Brewin Dolphin managed investments, and taking into account debtors and creditors, on December 31[st] , 2023, that amounted to 10 months of 2023 expenditure and thus slightly below the reserves policy above.

Where funds held are restricted these are shown in the Annual Accounts (See Note 26 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. The Unfunded Projects Reserve had few allocated projects in 2023 although has projects that will incur expenditure in 2024.

Project development 2023

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), which has assessed development projects and prioritised them. The Board have identified and designated total funds for these projects to ensure they can be concluded. The projects are key to SDC impact and delivery over the future years, ensuring delivery of charitable objectives and growth in sustainable income.

In 2022 a thorough re-write of the SDC websites (including Governance and Blog sub-sites) was concluded after some delays to bring the sites up 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. This went live in late 2022/early 2023 and incorporated also linkages to Mailchimp to effectively replace the membership database, thus reducing costs and increasing functionality simultaneously. During 2023 there was still much work that was done on the ‘new’ website ensuring membership subscriptions were in place for all members and renewal reminders and dates correct. As the Society moves on into 2024 the website is now operating much more effectively, and content is being added and expanded.

In 2023 the PEG Group agreed to progress several projects to enhance SDC Membership, Early Career Mentoring, the SDC Archive, a UK Technical Conference and an International Conference in mid-2024. A further project is to examine the potential and interest in further development of the Design Coloration Certificate course.

Membership promotion events were held in Birmingham in October 2023 and a similar London event was not possible until mid-March 2024. Both events saw individuals who were either lapsed members or never members attend with some success of new memberships. Both events however also experienced poor attendance of those registered as the events were provided free of charge to

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

attendees and hence not attending was at no cost to those who had registered. The events therefore did produce new/renewed memberships but at a cost of time and money.

The Early Career Mentoring Project has now been shelved as whilst it was approved by PEG getting a group to take ownership of the project and take it forward proved an issue. The Design Coloration Certificate Course further development was also mothballed as interest in looking at further developments waned. The one module developed already is now to be offered to members free of charge as a membership benefit.

A UK Technical Conference was held in Bradford in November 2023 and will be held again in October 2024 at the same location. The PEG funds ensured the conference was under pinned financially and sponsorships ensured it was delivered at minimal cost to the Society.

The Textile Collection in Perkin House is being catalogued and made available for others to access via procurement of an archive database and a fixed term appointment of a SDC Archivist. This work is predominately underway in 2024.

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 2021 no bursaries were awarded as the pandemic prevented activity by applicants – indeed one bursary was refunded to the Society due to the recipient not being able to undertake the planned activity. In 2022 there was an increase but still only 3 bursaries were awarded as activity once again resumed. In 2023 there was strong specific marketing promotion of the bursaries to grow the number of applications, but the number of bursaries in 2023 was only 4 as follows:

1 See page 15 of the December 2023 edition of The Colourist for more details. The Colourist Magazine can be accessed by current SDC Members on the SDC website in the Digital Archive section.

2 See Bursary Catch-up! Monika Dolbniak and Caroline Coyne – SDC W35 by Monika Dolbniak and Caroline Coyne and the related Blog on the SDC Website

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

knowledge on early colour photography which occurred some 67 years before James Clerk Maxwell’s invention of colour photography.

These bursaries support colour science education of the recipients. The sharing of their activity and reports at events and through The Colourist magazine and Blogs on the SDC website 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. In 2023 Colour Training Courses were provided to one company in the UK, and to 5 individuals and one company in China, as well as three individuals in Pakistan. It should be noted that SDC International India pvt Ltd also provided similar training to many individuals in India and Sri Lanka.

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. There now stands a collection 38 SDC Webinar Recordings on the SDC website which are available free of charge to current SDC Members and at a nominal £20+VAT charge to non-members. The eight SDC Webinars first aired live in 2023 are listed below:

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

These two courses form the first year (FTCC) and second and third years (FTCC) of a restructured 3- year course.

Eleven students studied the first year (FTCC) course for the academic year 2022 – 2023, completing in June 2023. Five of these were from England, two from Scotland, two from Northern Ireland, one from the Republic of Ireland and one from Thailand. Four students were studying the TCC Course, including one from New Zealand, one from Zimbabwe and two from England.

This spread of numbers supports the theory that the market is still interested in such qualifications but is cautious about longer term commitment (financially and in terms of their staffs time) unless prior engagement has proven some merit to the qualification. This is further reflected in the ASDC qualification take up (see below) where caution by industry has seen a fall in numbers.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

ASDC Qualification

Textile Coloration Science and Technology (Level 6) – leading to Associateship of the Society of Dyers and Colourists (ASDC) - is a three-year (minimum) distance learning course, leading to a benchmarked honour’s degree level qualification. The programme has received the Ecctis benchmarking assessment that it is a Level 6 qualification (equivalent to a good honours degree, as defined within the Framework for Higher Education Qualifications). Ecctis introduced a time limit on such benchmarking, such that the benchmarking of the ASDC would expire at the end of 2022. However, hard work by the Education, Qualifications and Accreditation Board of the SDC, along with SDC staff, ensured the benchmarking of the ASDC was renewed successfully for another five years. Ultimately gaining this qualification allows students to 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: Dyeing of Natural Fibres, Dyeing Theory, Textile Printing, Dyeing of Synthetic Fibres, Chemistry of Colourants and Colour Physics.

The cost of the degree equivalent ASDC is much lower than a university degree, plus students typically ‘earn as they learn’ in employment and their employer therefore also reaps immediate benefits from their studies. However, the impact on industry from pandemic recovery is considered to be behind the lower uptake of the ASDC currently until confidence in business resumes.

Five students graduated from the ASDC Course in 2021 which reduced to two students graduating in 2022 (one with ASDC and one with LSDC). These graduates of the ASDC Course all have more senior roles within their companies. In the first half of 2023 just one student was enrolled on the ASDC Course but was joined by a second course participant in October 2023. This was the first recipient of a Maurice Tordoff bursary to undertake the ASDC and was an outstanding graduate of the TCC course.

Publications

Four issues of The Colourist, an SDC member benefit, are produced per year, with production now outsourced to an external marketing company. The external team work closely with all SDC staff in the content collation and even undertake interviews and photography on behalf of the SDC to make production happen. In 2022 the 4 editions of the Colourist amounted to 76 pages in total whereas in 2023 this was increased very marginally to 77 pages in the usual 4 editions.

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 . Members were 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. However, WTiN no longer produce International Dyer and so new editions are not available.

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. The Wiley’s goals for Coloration Technology have been to grow readership of the journal, ensure the right authors submit papers and enhance the Society’s reputation.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

Coloration Technology moved to Institutional Print Only from 2023. Institutions access Coloration Technology via a specific subscription or, more commonly, through a license that allows the institute to access a whole host of Wiley’s titles, which includes Coloration Technology.

Individual subscribers are very much in the minority and will only be provided with electronic access, as is commonplace for the vast majority of Wiley’s journals today. Wiley do offer a Print-on-Demand option however where hard copies of issues or articles can be obtained.

The Coloration Technology Impact Factor has been an important publishing metric and one that has seen positive growth over the years. In 2022 (latest data) the Impact Factor was 1.8 vs 2.049 in 2021. Wiley is now a Declaration on Research Assessment (DORA) signatory whose guiding principles involve moving away from journal-based metrics and specifically the Journal Impact Factor. Article level metrics and individual author contribution are now the metrics of choice.

Articles in Coloration Technology were available in 2023 to 6,803 institutions offered access, an increase of 1% on 2022. It can also be seen that access via an ‘All Journals license’ and Transformational Agreements rose whilst other licence access fell – a scenario seen in many publications. The reach by region had some slight changes but remained relatively constant.

The trend of Article views of Coloration Technology articles continues to grow, as can be seen in the chart below. The countries around the globe who access Coloration Technology continues to be large with a similar annual profile as shown for 2023 below.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

The number of accepted articles continues to grow steadily with the number rejected without review decreasing in 2023. China, Turkey and India were the three top countries where submissions arose.

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. In 2023 the number of pages in Coloration Technology across the year rose from 678 in 2022 to 732, a rise of 8%.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

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 1[st] 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 continued as secretary to this committee although has now retired at the end of 2022.

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

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

Events

The SDC events showcase research and best practice in coloration. They also 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, especially for members, with a strong focus on supporting students and young professionals. The SDC also jointly organises events and participates in events organised 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

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

lectures on coloration and colouring matters and for discussion of the same ”. In 2023 this Object in the Royal Charter was delivered partly online via SDC Webinars which are listed in the above in this Annual Report.

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. In 2023 events were held: ‘Chemical Compliance and Biobased Solutions in Ludhiana, India in February 2023; ITMA Textile Colourants & Chemicals Forum Conference, at ITMA Milan, Italy in June 2023; ‘DyeChem World Exhibition – Tiruppur Edition’ in July 2023 organised in conjunction with SDC International Ltd; in Hong Kong with the SDC Hong Kong Region ‘Minds to Markets: From Coloration to Business Applications in the ESG World’ December 2023. Other 2023 SDC involved events included sponsorship of the July Colour 2023 conference at the University of Leeds and the Hong Kong Fashion Summit 2023 on 11 & 12 October 2023.

In 2024 it is the Society’s 140[th] year and the Colour Index™ sees it centenary. There will be several SDC connected events including:

Other SDC involved events in 2023 included regional meetings in the UK and overseas, notably a resurgence of activity in the Sri Lanka Region in late 2023 from which it hoped the Region can once again become active.

Membership

The SDC membership has continued its decrease, as prior Annual Reports have shown, albeit with some signs in the data of a plateau in numbers. The SDC gained 84 (88 in 2022) new individual SDC Members in 2023 this experiencing member recruitment levels of pre-2020. The total number of individual Members over time can be seen in the plot below – over 50 memberships decline per year up to and including 2022, reducing to an overall decline of 37 in 2023. The Chartered status individual memberships have also fallen in number, at a rate of over 20 per year in the last decade and comprised 34 of the overall 37 decline in 2023.

Work on Membership profiles now held on the SDC website has improved data quality also. All members have been contacted when their membership comes round for renewal and after it has lapsed with a series of communications encouraging them to renew. This has also been applied to

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

those whose membership lapsed in recent years and a number have come back into membership in the last 12 months.

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Membership at 31 December
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In the recent past the case for taking up SDC membership has arguably been weak, and work has been put into strengthening that offer. The Colourist Magazine is now only available to members, and some have rejoined to regain access to that once again. Webinars are available free of charge to members, but non-members and lapsed members now need to pay for access – again increasing membership renewals. Privileges of membership are now relinquished on the day the membership lapses which is driving members to renew and auto-renew to retain access to their benefits.

A SDC Membership Committee was proposed in late 2020 and came into being in 2021, many years after such last existed. In late 2020 a Governance Task Group of the SDC Audit Committee was also put in place to update and re-draft the Society’s Rules, By-Laws and Royal Charter clauses to put to the SDC Membership at a General Meeting for approval. This was to include the re-structure and naming of some membership categories. That work continues and Audit Committee and the Society’s Board are aiming to see that concluded and passed to the SDC Membership as soon as possible. The need for this has also been raised due to the sad passing of Queen Elizabeth II, since the Royal Charter is awarded from a specific monarch. As with all Royal Charter bodies the SDC therefore needs to apply for a new Royal Charter from King Charles III and to incorporate desired changes at that time would be optimal.

That review of the SDC Governance documents is nearing completion with the Governance Working Party having reported to Audit Committee in early 2024. Those proposed changes have now (April 2024) been reviewed by external charity lawyers and are being checked and proofread before being presented to the Society’s Board and from there to a General Meeting of the SDC Voting Members. Before that meeting members will have plenty of time to review the revised documents and will be briefed in detail on changes made.

One change the Society’s Board made in 2022, was that the fee differential for Voting Members and Non-Voting Members be abolished. All Voting Members now pay the same membership fee as NonVoting Members, unless they possess a CCol whereby they pay the same level of fee as they did previously as Voting Members. This has increased applications to be regraded from Non-Voting Membership to Voting Membership and the system for such has been further accelerated such that some re-gradings have now been approved within 24 hours. All new Voting Members names are

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

reported to the next meeting of the Society’s Board. It is important to note that the threshold to become a Voting Member has not been changed but the drive to have Non-Voting Members apply for upgrading their membership, and the turnaround time to evaluate such applications, has been greatly improved. The number of non-voting members is therefore declining.

Membership value for money

Going forward more is being 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.

Before the discounts above are taken into consideration, the cost of individual membership to the SDC is ca £39 pa before any staff time at all is taken into consideration. Student membership is priced at less than this, so many members support our student members through their membership subscriptions. For all other membership types, once staff time is added, the cost of membership exceeds the subscription price. SDC membership 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 24 at the end of 2023 (22 at end of 2021) and Educational Provider (College / University) memberships numbered 23 (12 at the end of 2022). The movements in these

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

memberships were notable in that companies were the first not to renew during the pandemic and the first to start to re-join or join as the pandemic lifted. The Educational Provider memberships were slower to not-renew and are only just starting to come back. The latter is also influenced by a need for Educational Providers to now be SDC Members in order to submit entries to the International Design Competition.

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1200
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78 70 66 98 49 92 86 56 88 84
31 34 28 19 17 10
0
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Total Members Ccol New Members New Students Voting Members
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Sponsorship

The Worshipful Company of Dyers have generously sponsored the Society over many 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 is as welcome as their funding. In 2020 the Worshipful Company commenced support of 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. Seven such students were supported in 2023 (six in 2022) and the fund now sits at £17,801 (down from £27,752 in 2022, but still with

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

sufficient resource to support UK based applicants). Applicants living in England can receive up to 60% of their fees paid and in the case of those unemployed have all their fees paid.

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, 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).

In 2024 onwards as part of the SDC Strategic Plan, the relationships with partner and affiliate bodies will be clarified and expanded to ensure this Royal Charter Object is further adhered to and also that the work of the Society can be expanded.

Investment Policy

The SDC funds include 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 value on 31[st] December 2022 was £940,637 and by the end of 2023 this had risen 3.7% to £975,697. In addition, during 2023 £26,624 was received into general funds from dividends arising from these investments (£25,285 in 2022). Including this income the return on investments in 2023 was 6.6% in 2023 (whereas 2022 was a loss of 8.5%).

The SDC investments are intended for the long term. In recent years there have been huge international impacts on investments (the Corona virus pandemic, wars in Ukraine and the Middle East and associated international higher interest rates and their consequences on economies) but in late 2023 some recovery was seen in the markets.

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SDC Investments managed by Brewin
Dolphin
£1,100,000
£1,050,000
£1,000,000
£950,000
£900,000
£850,000
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2020 2021 2022 2023
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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

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.

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. In 2023 Gift Aid was received and this assisted in smoothening the SDC finances and lowering risk once again, although the UK and international economies were not without financial pressures and turbulence.

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.

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.

HR support and expert advice is provided by an external HR company. This includes remote and onsite 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. management of the call for nominations and related voting for trustees and other positions on committees). No issues arose from any breaches of data security in the year.

GDPR

The EU General Data Protection Regulations (GDPR) came into force in May 2018. The SDC prepared for this new data regulation for many months. The data managed by the Society remains to be held and used under GDPR regulations.

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The Society of Dyers & Colourists 2023 Revised Annual Report & Financial Statements

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 few actions to be taken based on Low-Medium-High risk prioritisation. 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. In April 2024 some internal building work uncovered some potential asbestos, which is in the process of being tested by an accredited body. 2021 saw the Building Manager post outsourced to Entire FM, still with a Building Manager present in Perkin House Monday-Thursday mornings. In early 2024 this post has been migrated to a SDC post as Entire FM went into administration and the company set up in its place, Alkota, was not paying staff wages on time and still owes its staff some wages in April 2024.

UK Pension Auto-enrolment

The UK Government phased in auto-enrolment for employee pension schemes over some years. In 2023 all of the SDC staff members were in the SDC Peoples Pension scheme.

Remuneration Policy

The salaries of all SDC staff are set based on a Finance Committee and Society Board approved overall budget based on itemised lines including staff salaries. The SDC utilises a Remuneration Committee to approve staff salary rises. The SDC Remuneration Committee is comprised of the Honorary Treasurer, Honorary Secretary (and Chair of the Renumeration Committee), Chair of the Society’s Board, SDC President, Immediate Past President and President Elect plus the CEO. In 2022, against an environment of inflation and rises wage settlements, a pay benchmarking report was commissioned by Croner and this has also been the case in 2023 and 2024. This has informed the Renumeration Committee of pay positioning of SDC staff (at median and upper/lower quartile pay levels cf the UK, Region and Bradford) and lead to a 5% pay rise awarded in 2023.

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Statement of Trustees' Responsibilities

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

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 of the charity for that period.

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

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 Charities (Accounts and Reports) Regulations 2008 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 24 May 2024 and signed on its behalf by:

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The Society of Dyers & Colourists (SDC) Year ended 31 December 2023

Independent Auditor's Report to the Trustees of The Society of Dryers & Colourists (SDC)

Opinion

We have audited the financial statements of The Society Of Dyers And Colourists (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, the trustees are responsible for the preparation of the 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 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 charity or to cease operations, or have no realistic alternative but to do so.

32

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023

Independent Auditor's Report to the Trustees of The Society of Dryers & Colourists (SDC)

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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:

Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non‐ compliance with laws and regulations related to the application of charitable funds and data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We assessed the susceptibility of the charity's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates, especially accrued and deferred income.

To address the risk of fraud through management bias and override of controls, we:

• Performed analytical procedures to identify any unusual or unexpected relationships

• Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business.

• Investigated the rationale behind significant or unusual transactions.

• Challenged assumptions and judgements made by management in determining significant accounting estimates, in particular in relation to accrued and deferred income.

In response to the risk of irregularities and non‐compliance with laws and regulations, we designed audit procedures which included, but were not limited to:

• Discussions with management of known or suspected instances of non‐compliance with laws and regulations.

• Reading the minutes of meetings of those charged with governance.

At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non‐compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non‐compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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 Report of the Independent Auditors.

33

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023

Independent Auditor's Report to the Trustees of The Society of Dryers & Colourists (SDC)

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 auditors' 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.

Thomas Coombs Limited Statutory Auditor Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds West Yorkshire LS15 8ZB

Date: 24 May 2024

34

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023

Consolidated Statement of Financial Activities for the year ended 31 December 2023 (including Income and Expenditure Account)

Notes
Income From:
Donations
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Taxation
11
Total Expenditure
Net gains/losses on investments
12
Gains/Losses on revaluation of fixed
assets
17
Net income for the year
Transfers between funds
26
Net Movement in funds
Reconciliation of funds:
Total funds brought forward at 1
January 2023
26
Total funds carried forward at 31
December 2023
26		 Permanent
2023
2022
Unrestricted
Restricted
endowment
Revaluation
Total
Total
funds
funds
funds
reserve
Funds
Funds
£
£
£
£
£
£
22,000
-
-
-
22,000
20,164
118,144
-
-
-
118,144
128,085
6,100,943
-
-
-
6,100,943
6,148,251
225,772
-
-
-
225,772
195,647
9,598
-
-
-
9,598
34,332
6,476,457
-
-
-
6,476,457
6,526,479
4,962,125
-
-
-
4,962,125
4,444,158
871,976
9,951
-
-
881,927
760,076
222,857
-
-
-
222,857
324,174
6,056,958
9,951
-
-
6,066,909
5,528,408
-
-
-
41,348
41,348
(139,087)
-
-
-
6,000
6,000
24,288
419,499
(9,951)
-
47,348
456,896
883,272
-
-
-
-
-
-
419,499
(9,951)
-
47,348
456,896
883,272
9,332,489
37,992
17,501
176,337
9,564,319
8,681,047
9,751,988
28,041
17,501
223,685
10,021,215
9,564,319

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 40 to 60 form part of these financial statements.

35

The Society of Dyers & Colourists (SDC)

Year ended 31 December 2023

Charity Statement of Financial Activities for the year ended 31 December 2023 (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
17
Net income for the year
Transfers between funds
26
Net Movement in funds
Reconciliation of funds:
Total funds brought forward at 1
January 2023
26
Total funds carried forward at 31
December 2023
26		 Permanent
2023
2022
Unrestricted
Restricted
endowment
Revaluation
Total
Total
funds
funds
funds
reserve
Funds
Funds
£
£
£
£
£
£
529,292
-
-
-
529,292
170,164
118,144
-
-
-
118,144
128,085
111,745
-
-
-
111,745
99,460
42,708
-
-
-
42,708
350,000
801,889
-
-
-
801,889
747,709
81,239
-
-
-
81,239
80,132
864,689
9,951
-
-
874,640
760,076
945,928
9,951
-
-
955,879
840,208
-
-
-
41,348
41,348
(139,087)
-
-
-
6,000
6,000
24,288
(144,039)
(9,951)
-
47,348
(106,642)
(207,298)
-
-
-
(144,039)
(9,951)
-
47,348
(106,642)
(207,298)
2,730,122
37,992
17,501
176,337
2,961,952
3,169,250
2,586,083
28,041
17,501
223,685
2,855,310
2,961,952

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 40 to 60 form part of these financial statements.

36

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Consolidated Balance Sheet as at 31 December 2023

Notes
Fixed Assets
Intangible Assets
15
Tangible Assets
16
Heritage Assets
17
Investments
18
Investment Property
19
Current Assets
Stock
20
Debtors
21
Cash at bank and in hand
Liabilities
Creditors: amounts failing due within one year
22
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
23
Provisions for liabilities
Deferred tax
25
Total Assets
The funds of the charity:
26
Unrestricted funds
Accumulated fund
Funds retained in SDC Enterprises Group
Designated funds
Revaluation reserve
Total unrestricted funds
Restricted funds
Permanent endowment funds
Total Charity Funds		 2023
2022
£
£
£
£
43,645
30,083
3,322,493
1,430,021
63,500
35,500
975,697
940,637
320,866
1,811,243
4,726,201
4,247,484
2,496,222
1,958,599
1,284,076
1,329,368
3,433,387
3,750,454
7,213,685
7,038,421
(1,101,631)
(878,732)
6,112,054
6,159,689
10,838,255
10,407,173
(626,426)
(686,854)
(190,614)
(156,000)
10,021,215
9,564,319
2,180,706
2,315,275
7,165,905
6,602,367
405,377
414,847
223,685
176,337
9,975,673
9,508,826
28,041
37,992
17,501
17,501
45,542
55,493
10,021,215
9,564,319
-
-		 2023
2022
£
£
£
£
43,645
30,083
3,322,493
1,430,021
63,500
35,500
975,697
940,637
320,866
1,811,243
4,726,201
4,247,484
2,496,222
1,958,599
1,284,076
1,329,368
3,433,387
3,750,454
7,213,685
7,038,421
(1,101,631)
(878,732)
6,112,054
6,159,689
10,838,255
10,407,173
(626,426)
(686,854)
(190,614)
(156,000)
10,021,215
9,564,319
2,180,706
2,315,275
7,165,905
6,602,367
405,377
414,847
223,685
176,337
9,975,673
9,508,826
28,041
37,992
17,501
17,501
45,542
55,493
10,021,215
9,564,319
-
-
10,407,173
(686,854)
(156,000)
9,564,319
2,315,275
6,602,367
414,847
176,337
9,508,826
37,992
17,501
55,493
9,564,319
-

The financial statements were authorised for issue and signed on behalf of the Society's Board on 24 May 2024 .

The notes on pages 40 to 60 form part of these financial statements.

37

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Charity Balance Sheet as at 31 December 2023

Notes
Fixed Assets
Intangible Assets
15
Tangible Assets
16
Heritage Assets
17
Investments
18
Investment Property
19
Current Assets
Stock
20
Debtors
21
Cash at bank and in hand
Liabilities
Creditors: amounts failing due within one year
22
Net current assets
Net Assets
The funds of the charity:
26
Unrestricted funds
Accumulated fund
Designated funds
Revaluation reserve
Total unrestricted funds
Restricted funds
Permanent endowment funds
Total Charity Funds		 2023
2022
£
£
£
£
20,056
30,083
713,377
668,855
63,500
35,500
1,421,396
1,386,336
320,866
360,000
2,539,195
2,480,774
4,257
10,068
158,244
222,599
260,502
353,492
423,003
586,159
(106,888)
(104,981)
316,115
481,178
2,855,310
2,961,952
2,180,706
2,315,275
405,377
414,847
223,685
176,337
2,809,768
2,906,459
28,041
37,992
17,501
17,501
45,542
55,493
2,855,310
2,961,952
-
-		 2023
2022
£
£
£
£
20,056
30,083
713,377
668,855
63,500
35,500
1,421,396
1,386,336
320,866
360,000
2,539,195
2,480,774
4,257
10,068
158,244
222,599
260,502
353,492
423,003
586,159
(106,888)
(104,981)
316,115
481,178
2,855,310
2,961,952
2,180,706
2,315,275
405,377
414,847
223,685
176,337
2,809,768
2,906,459
28,041
37,992
17,501
17,501
45,542
55,493
2,855,310
2,961,952
-
-		 2023
2022
£
£
£
£
20,056
30,083
713,377
668,855
63,500
35,500
1,421,396
1,386,336
320,866
360,000
2,539,195
2,480,774
4,257
10,068
158,244
222,599
260,502
353,492
423,003
586,159
(106,888)
(104,981)
316,115
481,178
2,855,310
2,961,952
2,180,706
2,315,275
405,377
414,847
223,685
176,337
2,809,768
2,906,459
28,041
37,992
17,501
17,501
45,542
55,493
2,855,310
2,961,952
-
-		 2023
2022
£
£
£
£
20,056
30,083
713,377
668,855
63,500
35,500
1,421,396
1,386,336
320,866
360,000
2,539,195
2,480,774
4,257
10,068
158,244
222,599
260,502
353,492
423,003
586,159
(106,888)
(104,981)
316,115
481,178
2,855,310
2,961,952
2,180,706
2,315,275
405,377
414,847
223,685
176,337
2,809,768
2,906,459
28,041
37,992
17,501
17,501
45,542
55,493
2,855,310
2,961,952
-
-
2,855,310 2,961,952
2,180,706
405,377
223,685		 2,315,275
414,847
176,337
2,809,768 2,906,459
28,041
17,501		 37,992
17,501
45,542 55,493
2,855,310 2,961,952
- -

The financial statements were authorised for issue and signed on behalf of the Society's Board on 24 May 2024 .

The notes on pages 40 to 60 form part of these financial statements.

38

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Consolidated Statement of Cash Flows for the year ended 31 December 2023

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
Finance income
Tax expense
Tax paid
Amortisation
Depreciation charge
Decrease/(Increase) in stocks
Decrease/(Increase) in debtors
(Decrease)/increase in creditors
Net cash provided (used in) operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from the sale of investments
Purchase of subsidiary
Cash acquired in purchase of subsidiary
Proceeds from the sale of fixed assets
Purchase of investments
Purchase of investment property
Interest received
Movement in cash held within investments
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments of loans
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		 2023
2022
Total funds
Total Funds
£
£
456,896
883,272
(28,000)
(24,288)
-
8,606
(41,348)
130,481
-
(850)
(68,769)
(10,330)
222,857
324,174
(234,220)
(161,458)
11,269
-
123,845
100,218
(494,991)
(308,550)
247,813
(193,220)
83,892
(52,805)
Group
279,244
695,250
(241,992)
(301,941)
(83)
156,103
74,894
(432,699)
-
343,101
-
-
850
(147,681)
(90,421)
(280,942)
(45,041)
68,769
10,330
(2,134)
(117)
(537,475)
(351,529)
(58,836)
(62,035)
(58,836)
(62,035)
(317,067)
281,686
3,750,454
3,468,768
3,433,387
3,750,454
-

The notes on pages 40 to 60 form part of these financial statements.

39

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 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 significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Basis of consolidation

The group financial statements consolidate the accounts of the Society of Dyers and Colourists and its subsidiaries 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 2023. 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.

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.

The objectives of the various designated, restricted and permanent endowment funds are set out in note 26.

40

Notes to the Financial Statements (continued)

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023

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:

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 £507,292 (2022 - £150,000).

Expenditure

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 charity's overheads. Support costs are those of managing and administering the SDC and represent expenses incurred attributable to the management of 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
Freehold land - not depreciated
Plant & machinery - 15% - 33.3% straight line
Furnishing and general equipment - 15% - 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.

41

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 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.

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.

Heritage assets

Heritage assets are initially recognised at cost and carried at historical cost subject to any depreciation or impairment. The charity has adopted a policy of valuation.

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.

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.

Debtors and creditors receivable / payable within one year

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

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). Trustees have assessed the UEL of goodwill to be 5 years.

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful life as follows:

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

42

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

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 currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

Pension costs

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the charitable 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.

Research and developments

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

Tax - Charity

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Tax - Trading subsidiaries

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

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from the date of authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

43

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

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 £3,322,493 (2022-£1,430,021).

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 £2,496,222 (2022 - £1,958,599).

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 and historical experience. The carrying amount is £1,284,076 (2022 - £1,329,368).

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Financial Instruments

Financial assets

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

44

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

3. Income from donations

3.
Income from donations
Gifts and donations
Included within gifts and donations is £Nil (2022 - £Nil) of restricted income.
4.
Income from charitable activities
Day of Celebration
Seminars and conferences
Books and publications:
Academic books
Malcolm the Weaver books
Coloration Technology
Training
Membership subscriptions
UK Government grants
Qualifications
Other		 Group
Charity
2023
2022
2023
2022
£
£
£
£
22,000
20,164
529,292
170,164
2023
2022
2023
2022
£
£
£
£
3,536
3,200
3,536

3,200

10,873
1,054
10,873
1,054
-
-
-
-
709
1,841
709
1,841

4,340
4,019
4,340

4,019

31,891
35,543
31,891
35,543
25,663
32,778
25,663
32,778
40,097
39,639
40,097
39,639
-
9,504
-

9,504

510
100
510

100
525
407
525
407

Group
Charity
118,144
128,085
118,144
128,085

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

Analysis of Income by activity (Group and Charity - current and previous year)

2023 2022
£ £
Seminars & conferences 10,873 1,054
Training 25,663 32,778
Qualifications 510 100
Education 37,046 33,932
Day of celebration 3,536 3,200
Membership subscriptions 40,097 39,639
Membership 43,633
 42,839
Books academic 709 1,841
Books - Colour experience Malcolm Weaver 4,340 4,019
Coloration technology 31,891 35,543
Publications 36,940 41,403
UK Government grants - 9,504
Other 525 407
Other 525
 9,911
Total 118,144 128,085
5. Income from other trading activities
Group Charity
2023 2022 2023 2022
£ £ £ £
Trading income from subsidiaries 6,100,943 6,148,251 - -

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

45

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

6. Income from investments

6. Income from investments
Group Charity
2023 2022 2023 2022
£ £ £ £
Rental Income 130,379 160,032 81,741
 72,723
Interest received 68,769 8,991 3,380 1,452
Other interest receivable - 1,339 - -
Dividends from listed investments 26,624
 25,285
 26,624 25,285
225,772 195,647 111,745 99,460
All income from investments was unrestricted in the current and preceding year.
7. Other income
Group Charity
2023 2022 2023 2022
£ £ £ £
License fee received from subsidiary - - 42,708 350,000
Government grants 2,698 27,432 -
 -
Other income from subsidiaries 6,900 6,900 - -
9,598 34,332 42,708 350,000

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

8.
Expenditure on raising funds
Outsourced general marketing
Bradford Council car park lease
Investment property costs
Broker fees
Trading by subsidiaries		 2023
2022
2023
2022
£
£
£
£
28,474
38,905
28,474
38,905
4,551
4,539
4,551
4,539
42,479
30,882
42,479
30,882

5,735
5,806
5,735

5,806
4,880,886
4,364,026
-
-

Group
Charity
4,962,125
4,444,158
81,239
80,132

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

9. Expenditure on charitable activities

Books Colour Experience
Coloration Technology
Qualifications costs
Training costs
Salary costs (including redundancy costs)
Travel and subsistence
Operational costs
Depreciation
(Profit) on disposal of tangible fixed assets
Governance costs (Note 10)
Bursaries / Awards
Seminar and conference costs
Day of Celebration
Other SDC committees
Irrecoverable input VAT
Outsourced service costs:
Facilities management services
External accountancy and consultancy fees
General admin support
HR helpline services
Bookkeeping services
The Colourist		 2023
2022
2023
2022
£
£
£
£
-
13,174
-
13,174
30,576
31,672
30,576
31,672

4,788
9,785
4,788
9,785

4,615
4,699
4,615
4,699

378,114
377,073
370,994

377,073
16,621
14,318
16,621
14,318
163,767
115,603
163,767
115,603

25,704
34,161
25,704
34,161
-
(450)
-
(450)
56,357
28,798
56,357
28,798
12,559
16,254
12,559
16,254
32,918
1,793
32,918
1,793
36,659
22,548
36,659

22,548
2,942
1,317
2,942
1,317
27,231
14,417
27,231
14,417
20,124
19,149
20,124

19,149
5,737
3,018
5,570
3,018
6,302
2,958
6,302
2,958
3,895
5,609
3,895
5,609
35,098
32,282
35,098
32,282
17,920
11,898
17,920
11,898
Group
Charity
881,927
760,076
874,640
760,076

46

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

9 Expenditure on charitable activities

Analysis of expenditure by activity:

Group and Charity - current year

Seminars & conferences
Training costs
Qualification costs
Education
Membership Management
Day of Celebration
The Colourist
Bursaries/awards
Membership
Books Academic
Books Childrens
Coloration Technology
Publications
Administrative costs
Total		 Direct costs
Staff costs
Shared costs
Support costs
(Governance)
Total
£
£
£
£
£
32,918
44,391
49,110
9,003
135,422
4,615
91,735
61,206
11,221
168,777
4,788
15,125
12,649
2,319

34,881
42,321
151,251
122,965
22,543
339,080
-
-
76,805
42,170
7,731
126,706
36,659
20,947
31,629
5,798

95,033

17,920
27,929
25,173
4,615
75,637
12,559
13,964
14,563
2,670
43,756
67,138
139,645
113,535
20,814
341,132
-
-
2,093
983
180
3,256
-
6,279
2,950
541
9,770
30,576
33,486
30,097
5,517

99,676
30,576
41,858
34,030
6,238
112,702
-
-
45,361
36,890
6,762
89,013
140,035
378,115
307,420

56,357
881,927

Group and Charity - prior year

Education
Membership and Qualifications
Publications
Administrative costs		 Direct costs
Staff costs
Shared costs
Support costs
Total
(Governance)
£
£
£
£
£
11,898
99,893
64,212
7,629

183,632
55,079
126,115

81,067
9,632
271,893
44,846
121,887
78,349
9,309
254,391
-
29,177

18,755
2,228
50,160
111,823
377,072
242,383
28,798

760,076

Total expenditure on charitable activities was £881,927 (2022 - £760,076) of which £9,951 (2022 - £11,877) 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		 2023
2022
2023
2022
£
£
£
£
2,496
2,705
2,496
2,705

694
2,207
694
2,207
18,002
4,744
18,002

4,744
1,963
1,707
1,963
1,707

4,173
-
4,173
-
15,448
14,267
15,448
14,267
2,612
2,249
2,612
2,249
-
17
-
17
3,687
2,476
3,687
2,476
225
1,703
225
1,703
7,057
(3,277)
7,057
(3,277)
Group
Charity
56,357
28,798
56,357
28,798

47

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 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		 2023
2022
2023
2022
£
£
£
£
188,243
240,400
-

-

-
(226)

-
-
-
-
-
-
34,614
84,000
-
-
-
-
-
-
Group
Charity
222,857
324,174
-
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than the standard rate of corporation tax (2022 - higher than) in the UK of 25% (2022 - 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 25% (2022-19%)
Effects of:
Expenses not deductible for tax purposes, other than
goodwill amortisation and impairment
Difference in accelerated CA's due to non qual dep'n
Effect of tax rate charges
Under/(over) provision in prior year
Other timing differences leading to an increase
(decrease) in taxation
Super deduction difference
Rounding
Distribution to parent made in Gift Aid
Losses not provided for
Goodwill amortisation
Capital allowances on investment property additions
Total tax charge for the year		 2023
2022
2023
2022
£
£
£
£
1,301,349
1,589,933

-
-
325,337
302,087
-
-
929
888
-
-
1,353
645
-

-
(10,762)
37,439
-
-
-
(226)
-
-
20,326
-
-
-
(46)
(16,881)
-
-
-
222
-

-
(126,823)
-
-
-
15,982
-
-
-
311
-
-

-
(3,750)
-
-
-
222,857
324,174
-
-

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

12
Net losses on Investments
Realised gains/(losses)
Unrealised gains/(losses)
Gain/(loss) on revaluation of investment property		 2023
2022
2023
2022
£
£
£
£
-
2,470
-
2,470
41,348
(132,951)
41,348

(132,951)

-
(8,606)
-
(8,606)
Group
Charity
41,348
(139,087)
41,348
(139,087)

48

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 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		 2023
2022
2023
2022
£
£
£
£
1,579,266
1,334,933
316,154

307,396

150,698
141,750
23,723
34,450
152,738
126,778
31,117
27,827
Group
Charity
1,882,702
1,603,461
370,994
369,673

The group paid £3,886 (2022 - £3,691) in respect of employer's life assurance contributions and £11,880 (2022 - £5,545) in respect of employer's private medical contributions during the year. The charity paid £3,886 (2022 - £3,691) in respect of employer's life assurance contributions and £3,719 (2022 - £2,330) in respect of employer's private medical contributions during the year.

There were 3 employees of the group with employment benefits in excess of £60,000 (2022 - 3).

Bands:
£220,001 - £230,000
£190,001 - £220,000
£110,001 - £120,000
£90,001 - £100,000
£70,001 - £80,000
£60,001 - £70,000		 2023
2022
2023
2022
No.
No.
No.
No.
-
1
-

-

1
-
-

-
-
1
-
1

1
-
1
-
-
1
-
1

1
-
1
-
Group
Charity
3
3
2

2

The number of staff who received in excess of £60,000 to whom retirement benefits are accruing under defined contributions schemes was 3 (2022 - 3).

Employer's pension contrubutions to defined
contribution schemes in respect of the
employees receiving in excess of £60,000		 2023
2022
2023
2022
£
£
£
£
55,464
50,267
16,094
15,328
Group
Charity
55,464
50,267
16,094
15,328

The key management personnel of the group Includes a director from SDC Enterprises, CEO of SDC Charity and Deputy CEO of Charity. The total employment costs to the group was £453,038 (2022 - £416,076).

None of the Trustees (2022 - None) have been paid any remuneration or received any other benefits from the Charity. During the year 6 Trustees (2022 - 1) were reimbursed for expenses incurred on behalf of the Charity to the sum of £1,784 (2022 - £1,213). During the year 11 Trustees (2022 - 11) were invoiced for subscriptions totalling £506 (2022 - £1,081). At the year end there was £Nil due from Trustees, at the previous year end £Nil was due from Trustees.

14. Average staff numbers

Charitable activities
Management administration		 2023
2022
2023
2022
No.
No.
No.
No.
6
6
6
6
42
33
2
2
Group
Charity
48
39
8
8

49

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

15. Intangible assets

Group
Cost
At 1 January 2023
Additions
As at 31 December 2023
Amortisation
At 1 January 2023
Charge for the year
As at 31 December 2023
Net book value
As at 31 December 2023
As at 31 December 2022
Charity
Cost
At 1 January 2023
Additions
As at 31 December 2023
Amortisation
At 1 January 2023
Charge for the year
As at 31 December 2023
Net book value
As at 31 December 2023
As at 31 December 2022		 Goodwill
Website
Total
Development
£
£
£
209,000
30,083
239,083
24,831
-
24,831		 Goodwill
Website
Total
Development
£
£
£
209,000
30,083
239,083
24,831
-
24,831
233,831
30,083		 263,914
209,000
-
1,242
10,027		 209,000
11,269
210,242
10,027		 220,269
23,589
20,056		 43,645
-
30,083
 30,083
Website
Development
£
30,083
-
30,083
-
10,027
10,027
20,056
30,083

50

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

16. Tangible fixed assets

Group cost or revaluation
Cost at 1 January 2023
Additions
Reclassification/transfer
Disposals
Acquired through business combination
Cost at 31 December 2023
Depreciation at 1 January 2023
Charge for the year
Eliminated on disposal
Acquired through business combination
Depreciation at 31 December 2023
Net book value at 31 December 2023
Net book value at 31 December 2022		 Plant,
machinery
Leasehold
Freehold
and
Total
improvements
property
equipment
£
£
£
£
81,925
740,000

2,506,676
3,328,601
-
-
241,992
241,992
-
1,771,319
-
1,771,319
-
-
(1,200)
(1,200)
-
-
1,302,274
1,302,274
81,925
2,511,319
4,049,742
6,642,986
65,186
-
1,833,394

1,898,580

5,412
-
118,433
123,845
-
-
(1,200)
(1,200)
-
-
1,299,268
1,299,268
70,598
-
3,249,895

3,320,493
11,327
2,511,319
799,847
3,322,493
16,739
740,000
673,282
1,430,021

Freehold property was revalued in December 2022 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. It was agreed to use the previous year figures as the report was issued in March 2023.

During the year ended 31st December 2023 there was a change in the use of property previously classified as investment property, as a result of 3rd party tennants becoming tennants within the group. As such property previously held as investment property was reclassified as freehold property.

Included within the net book value of land and buildings of subsidiaries consolidated is £1,821,319 in respect of freehold land and buildings. The freehold property was valued at £1,500,000 by Walker Singleton on 27 October 2020 on an open market basis. Since this date there have been additions to the freehold property at a cost of £321,319.

The historical cost of the freehold property above at 31 December 2023 was £2,551,376 (2022 - £653,996).

Charity cost or revaluation
Cost at 1 January 2023
Additions
Transfer from investment property
Cost at 31 December 2023
Depreciation at 1 January 2023
Charge for the year
Eliminated on revaluation
Depreciation at 31 December 2023
Net book value at 31 December 2023
Net book value at 31 December 2022		 Furnishings
Leasehold
Freehold
and
improvements
property
equipment
Total
£
£
£
£
45,439
640,000
113,278

798,717

-
-
10,199

10,199
-
50,000
-

50,000
45,439
690,000
123,477
858,916
45,439
-
84,423
129,862
-
-
15,677
15,677
-
-
-
-
45,439
-
100,100
145,539
-
690,000
23,377

713,377
-
640,000
28,855
668,855

Freehold property was revalued in December 2023 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 2023 was £653,996 (2022 - £653,996).

51

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

17. Heritage assets Group and charity

Brought forward as 1 January 2023 (as restated)
Additions
Disposals
Revaluation
Carried forward 31 December 2023		 Heritage
Assets
£
35,500
22,000
-
6,000
63,500

Heritage assets include a collection of historical artifacts held by the charity that have been donated over the years and acquired dating back to the inception of the charity.

Heritage assets were revalued in January 2024 by an external valuer for insurance purposes. The valuation was conducted by Gary Don Auctioneers and Valuers.

Heritage assets not been recognised in the balance sheet

A collection of heritage assets are not recognised in the balance sheet, information on their valuation is not available and such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the charity. These assets include items of museum exhibits which are uncatalogued and would be extremely difficult to value due to the nature of the collection.

18. Investments

Investments
Quoted investments at market value
Cash
Investment in subsidiaries
SDC Enterprises Limited
SDC International Limited
Quoted investments at cost		 Realised/
At 31
At 1 January
Unrealised
December
2023
Additions
Disposals
gains
2023
£
£
£
£
£
934,073
147,681

(156,103)
41,348
966,999
6,564
185,859
(183,725)
-

8,698
940,637
333,540
(339,828)
41,348

975,697
445,600
-

-
-
445,600
99
-
-
-

99
445,699
-
-
-
445,699
854,889
-
-
-

853,058

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.

Investments in subsidiaries

SDC owns 100% of the £1 ordinary shares issued in SDC Enterprises Limited, the investment is £445,600 (2022 £445,600). SDC Enterprises Limited (Company number 00433197) owns 100% of the £1 ordinary shares issued in Sam Weller Limited (Company number 00433197), the results of both companies are consolidated in these financial statements.

On 19th July 2023, SDC Enterprises acquired 100% of the £1 ordinary shares issued in Northern Dyers Limited (Company number 02256990). The results of Northern Dyers Limited from the date of acquisition are consolidated in these financial statements.

The SDC's investment in SDC International (Company number - 04309970) represents £99 (2022 - £99) ordinary shares of £1 each which is wholly owned.

All subsidiaries are incorporated and registered in England and Wales.

52

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

19.

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

Turnover
Other Income
Expenditure
Profit for the year
Assets
Liabilities
Net assets
Investment Property
Group
Valuation
At 1 January 2023
Additions at cost
Revaluations
Transfers (to)/from freehold property
At 31 December 2023
Charity
Valuation
At 1 January 2023
Additions at cost
Revaluations
Transfers (to)/from freehold property
At 31 December 2023		 2023
2022
£
£
6,100,943
6,148,251
123,625
130,519
(5,146,076)
(5,038,576)		 2023
2022
£
£
6,100,943
6,148,251
123,625
130,519
(5,146,076)
(5,038,576)
1,078,492
1,240,194
9,508,211
8,807,075
(1,811,663)
(1,681,727)
7,696,548 7,125,348
Freehold
Investment
Property
£
1,811,243
280,942
-
(1,771,319)
320,866
Freehold
investment
property
£
360,000
10,866
-
(50,000)
320,866

Group and Charity

Investment property was revalued in December 2022 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. It was agreed to use the previous year figures as the report was issued in March 2023.

The historical cost of the freehold investment property above at 31 December 2023 was £323,336 (2022 - £1,950,638).

As described in note 16 investment property has been reclassified as freehold property during the year ended 31st December 2023.

20.
Stock
Raw materials and consumables
Work in progress
Finished goods for resale		 2023
2022
2023
2022
£
£
£
£
681,517
660,121
-
-
229,937
187,240
-
-
1,584,768
1,111,238
4,257
10,068
Group
Charity
2,496,222
1,958,599
4,257
10,068

Total carrying amount of stocks pledged as security for liabilities was £2,491,965 (2022 - £1,948,531).

53

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

21. Debtors

Debtors
Amounts falling within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments		 2023
2022
2023
2022
£
£
£
£
1,061,470
1,079,072
13,887

12,206

-
-
85,155
143,097
118,086
154,688
41,633
44,175
104,520
95,608
17,569
23,121

Group
Charity
1,284,076
1,329,368
158,244
222,599

A specific bad debt provision, amounting to £40,052 (2022 - £40,052), 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 £Nil (2022 -£Nil).

22. 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		 2023
2022
2023
2022
£
£
£
£
60,791
59,199
-
-
412,178
330,224
22,776

33,173

143,061
196,922
14,214

28,653
465,202
273,132
54,074
27,686

20,399
19,255
15,824
15,469
Group
Charity
1,101,631
878,732
106,888

104,981

Deferred income relates to income received for subscription and member fees which is not relatable to the year end 31 December 2023.

23. Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Bank loans 2023
2022
2023
2022
£
£
£
£
626,426
686,854
-

-
Group
Charity
626,426
686,854
-
-

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.

24. Loans

Loans
Bank loans:
Amounts falling due within one year
Amounts falling due 2-5 years		 2023
2022
2023
2022
£
£
£
£
60,791
59,199
-
-
626,426
686,854
-
-
Group
Charity
687,217
746,053
-

-

54

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

25. Deferred tax

Deferred tax
At beginning of year
(Released)/charged during year
At end of year
Accelerated capital allowances
Other timing differences
Losses c/fwd
Total
for deferred taxation is made up as follows:		 2023
2022
2023
2022
£
£
£
£
156,000
72,000
-
-

34,614
84,000
-

-

Group
Charity
190,614
156,000

-
-
2023
2022
2023
2022
£
£
£
£
190,614
159,000
-
-
-
(2,000)
-
-
-
(1,000)
-
-

Group
Charity
190,614
156,000
-
-

The provision for deferred taxation is made up as follows:

55

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

26.
Funds - current year
Unrestricted funds
Accumulated funds
Designated funds
Centenary educational trust
Tordoff memorial
Unfunded projects reserve
Total designated funds
Revaluation Reserve
Total unrestricted funds - Charity
Restricted funds
George Douglas Lecture
Turner Scholefield Award
Future Textile Dyers Fund
Permanent endowment funds
George Douglas Lecture
Turner Scholefield Award
Veronica Bell Award
Total funds - Charity
Funds retained in trading subsidiaries
Total funds - Group		 Fund balance
Gains and
Net movement
Fund balance
01/01/2023
Income Expenditure Transfer
Losses
In funds
31/12/2023
£
£
£
£
£
£
£
2,315,275
801,889
(943,359)
6,901
-
(134,569)
2,180,706
63,478
-
(2,569)
-
(2,569)

60,909

96,385
-
-
(1,500)
-
(1,500)
94,885
254,984
-
-
(5,401)
-
(5,401)
249,583
414,847
-

(2,569)

(6,901)
-
(9,470)
405,377
176,337
-
-
47,348
47,348
223,685
2,906,459
801,889

(945,928)

-
47,348
(96,691)
2,809,768
1,730
-
-
-
-
-
1,730
8,510
-

-

-
-
-
8,510
27,752
-
(9,951)
-
(9,951)

17,801
37,992
-
(9,951)
-
-
(9,951)
28,041

2,128
-

-

-
-
-
2,128
2,497
-

-
-
-
-
2,497

12,876
-

-
-
-

-

12,876
17,501
-
-
-
-
-
17,501
2,961,952
801,889
(955,879)
-
47,348
(106,642)
2,855,310
6,602,367
5,674,568
(5,111,030)

-
-
563,538
7,165,905
9,564,319
6,476,457
(6,066,909)
-
47,348
456,896
10,021,215

56

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

26.
Funds - previous year
Unrestricted funds
Accumulated funds
Designated funds
Centenary educational trust
Tordoff memorial
Unfunded projects reserve
Total designated funds
Revaluation Reserve
Total unrestricted funds - Charity
Restricted funds
George Douglas Lecture
Turner Scholefield Award
Future Textile Dyers Fund
Permanent endowment funds
George Douglas Lecture
Turner Scholefield Award
Veronica Bell Award
Total funds - Charity
Funds retained in trading subsidiaries
Total funds - Group		 Fund balance
Gains and Net movement
Fund balance
01/01/2022
Income Expenditure Transfer
Losses
In funds
31/12/2022
£
£
£
£
£
£
£
2,396,350
747,709
(823,954)
(31,588)
26,758
(81,075)

2,315,275

67,855
-
(4,377)
-
-
(4,377)
63,478

96,385
-
-
-
-
-
96,385

236,205
-
-
18,779
-
18,779
254,984
400,445
-
(4,377)
18,779
-
14,402
414,847
305,085
-

-
12,809
(141,557)
(128,748)
176,337
3,101,880
747,709

(828,331)

-

(139,087)
(195,421)
2,906,459
1,730
-
-
-
-
-

1,730

8,510
-
-
-
-
-
8,510

39,629
-
(11,877)
-
-
(11,877)
27,752
49,869
-
(11,877)
-
-
(11,877)
37,992
2,128
-
-

-

-

-

2,128
2,497
-
-

-

-

-

2,497
12,876
-

-
-
-
-
12,876
17,501
-
-
-
-

-
17,501
3,169,250
747,709
(840,208)
-
(139,087)
(207,298)
2,961,952
5,511,797
5,778,770
(4,688,200)
-

-
1,090,570
6,602,367
8,681,047
6,526,479
(5,528,408)
-

(139,087)
883,272

9,564,319

57

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

26 Funds (continued)

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

Designated Funds:

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.

Unfunded projects reserve

This fund is designated for additional Gift Aid received over and above the Society’s Board agreed baseline level required for general running of the Society. These reserves are then available via the Project Evaluation Group (PEG) for specific projects to develop the SDC products and services.

Restricted Funds:

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.

Future Textile Dyers Fund

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

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.

58

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

28.

27. Analysis of net assets by funds - Group

At 31 December 2023
Intangible fixed assets
Heritage assets
Tangible fixed assets
Investments
Investment property
Current assets
Current liabilities
Long term liabilities
Provisions for liabilities		 Permanent
Revaluation
Unrestricted
Restricted
Endowment
Reserve
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
43,645
-
-
-
43,645
63,500
-
-
-
63,500
3,322,493
-
-
-
3,322,493
975,697
-
-
-
975,697
320,866
-
-
-
320,866

7,158,192
37,992
17,501
-
7,213,685
(1,101,631)
-
-
-
(1,101,631)
(626,426)
-
-
-
(626,426)

(190,614)
-
-
-
(190,614)
9,965,722
37,992
17,501
-
10,021,215

Analysis of net assets by funds - Group - previous year

At 31 December 2022
Intangible fixed assets
Heritage assets
Tangible fixed assets
Investments
Investment property
Current assets
Current liabilities
Long term liabilities
Provisions for liabilities		 Permanent
Revaluation
Unrestricted
Restricted
Endowment
Reserve
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
30,083
-
-
-
30,083
35,500
-
-
-
35,500

1,430,021
-
-
-
1,430,021
940,637
-
-
-
940,637

1,811,243
-
-
-
1,811,243

6,982,928
37,992
17,501
-
7,038,421

(878,732)
-
-
-
(878,732)

(686,854)
-
-
-
(686,854)

(156,000)
-
-
-
(156,000)
9,508,826
37,992
17,501
-
9,564,319

Analysis of changes in net debt

Long term borrowings
Short term borrowings		 Net debt at
Cash flow
Net debt 31
1 January
December
2023
2023
686,854
(60,428)
626,426

59,199
1,592

60,791
746,053
(58,836)
687,217

59

The Society of Dyers & Colourists (SDC) Year ended 31 December 2023 Notes to the Financial Statements (continued)

29. Commitments under operating leases - lessee

At 31 December 2022 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		 2023
2022
2023
2022
£
£
£
£
156,445
127,873
12,829
12,523
152,829
120,639
12,829
12,523
46,750
151,146
23,417
35,480
Group
Charity
356,024
399,658
49,075
60,526

The amount of non-cancellable operating lease payments recognised as an expense during the year was Group £228,030 (2022 - £134,393) and Charity £12,680 (2022 - £19,043).

Commitments under operating leases - lessor

At 31 December 2023 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		 2023
2022
2023
2022
£
£
£
£
11,004
79,607
11,004
15,232

964
261,405
964
21,155
-
287,375
-
-

Group
Charity
11,968
628,387
11,968
36,387

The amount of contingent rents recognised as income during the year was £81,741 (2022 - £104,167). Capital commitments £Nil (2022 - £Nil)

30. Related party transactions

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

Charity

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

31. 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.

60