SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
(Company limited by guarantee and not having a share capital)
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their report and the financial statements of the charity for the year ended 31st December 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.
Reference and administration information
Charity name: Shorthorn Society of the United Kingdom of Great Britain and Ireland Charity registration number: 213216 Company registration number: 9597 Registered office and Society Pavilion Operational address: Avenue M Stoneleigh Park Kenilworth Warwickshire CV8 2RG Directors / Trustees P Armstrong I R G Collins D H Craig Mrs E A E Davies S E Dixon Appointed 4 November 2021 J R Fisher G James R G Kite D Madeley N Madeley Miss F Mannerings R S T Morgan T C Moscrop J R Osborne A Reilly J E Robinson Resigned 5 July 2021 A G Rothen S Royle Mrs S H M Slade S V B Thomas D Wainwright A H J Whittle D Winnington J P Wyatt Mrs W A Young
Directors / Trustees
President
D H Craig
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
Company Secretary
Mrs R E Rimmer
Independent examiner
Richard Miller MA (Oxon) FCA, Dafferns LLP, Chartered Accountants, One Eastwood, Harry Weston Road, Binley Business Park, Coventry, CV3 2UB.
Bankers
HSBC Bank plc. Coventry
Activities and charitable objects
The principal activity and charitable objects of the Society are to encourage, promote and improve the breeding of Shorthorn cattle in the United Kingdom of Great Britain and Ireland, or elsewhere, and to compile and maintain a Herd Book of recognised and pure-bred Shorthorn cattle.
Public benefit
The trustees consider they have complied with their duty to have due regard to the guidance on public benefit, as published by the Charity Commission, in exercising their powers and duties.
Achievements and performance
The Dairy Industry in 2021 experienced the driving forces of rising input costs with both processors and famers alike feeling the strain as the cost of fuel, energy, fertiliser, labour, transport all increased throughout 2021. This pressure looks set to continue into 2022. Whilst these circumstances have pushed milk prices up there has not been enough to incentivise expansion. Milk prices are just covering the costs increases, however, if milk prices continue to rise and costs can be covered, and yields begin to increase positivity, producers will begin to invest again.
The advantage of the native Dairy Shorthorn is that many Dairy Shorthorn herds are run on a low input system, so we are not seeing the exodus from the industry within our breed like other high input breeds which incur the higher costs. Rising costs stabilised the increase in registrations in 2021 that we saw in 2020 and due to Brexit and leaving Europe the Society are unable to accept Irish registrations which did have a detrimental effect on registrations in 2021. New UK members continue to steadily join the Society, helping in the replacement of the Irish members that have been lost through Brexit.
Record sales of sexed semen through The Society’s subsidiary company Shorthorn Sires Ltd will inevitably have an outcome of more female pedigree animals on the ground, that we hope will be registered with the Society in the coming 12 to 18 months. TB continues to be an issue for many dairy farmers. Investment value increased during 2021 following the lower valuation in 2021, the Society are hoping to be in the position to put many borrowed from investments back into further investments in 2021.
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and performance
Society expenses have increased in 2021, this is due to partly to returning to shows that had not been held in 2020 due to COVID, there was an increase in staff wages and an increase in marketing which included promotional Semen brochures that were then posted out to members and potential semen purchasers. Society Staff in 2021 comprised of a salaried office manager/ administrator, Part time bookkeeper/breed manager, Part time Field Officer and Part time publicity manager.
Promotion of the breed continued in many formats during 2021, from Shows, advertising in the farming press, livestock market shows & sales, continuing with the posting out of the successful semen brochure along with newsletters, photographic competition and the continued networking with industry contacts.
Building of the Genomic database continues, along with the development of the international committee, once the database has enough data this will assist the breed in its development.
As 2021 progressed we saw the return of Shows and young members being able to take part in calf shows and young handlers’ classes, and it was good the All-Breed All Britain Calf show for the young members to take part in at the end of 2021, the continued development of the youth will be focussed on going into 2022 as the country continues to open up following COVID.
Social media continues to be a big factor in our promotion and communication with members with many referring to it for show results and market sales reports, very positive feedback is received about the Shorthorn Social Media from both old and young alike.
Financial review
The net income for the year amounted to £74,491. This amount has been added to reserves brought forward leaving fund balances of £396,803 at the end of the year. The trustees consider the results to be satisfactory.
Reserves policy
The Society aims to hold financial reserves that cover up to one year’s outgoing resources. At 31 December 2021 the Society held free reserves amounting to £396,803.
Structure Governance and Management
Governing document
The Society is a charitable company limited by guarantee and does not have a share capital. The Society was incorporated on 15 June 1875 and registered as a charity on 8 January 1963. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed by its Articles of Association.
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
REPORT OF THE DIRECTORS AND TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
Recruitment and appointment of the Council
The directors of the company are also charity trustees for the purpose of charity law and under the company’s Articles are known as members of the Council.
Each year some council members retire by rotation and are eligible for re-election. They are elected by a ballot of those members entitled to vote.
Trustee induction and training
New Trustees are briefed by the President on their obligations as Council members and the future plans and objectives of the Society. Minutes of previous meetings are also available for new Council Members upon request.
Risk review
The trustees have conducted a review of the major risks to which the charity is exposed and have established systems to mitigate these risks.
Every effort is made to ensure that all risks are kept to a minimum. The Council consider that insurance cover and reserves are adequate to ensure the continued operation of the Society in the event of the occurrence of any unexpected incident.
The uncertainty over the COVID-19 pandemic presents risks to the Society’s operations and income streams. The Society’s Trustees review and monitor these on an ongoing basis.
Trustees will be conducting meetings and discussions via online conferencing to reduce the need to meet face to face. Registration and membership income have been reviewed and should remain stable in the short term. Ongoing marketing, sales and promotion of the breed will focus on online and social media platforms in order to replace some of the exposure the breed would normally have had from attendance at shows and events. Trustees monitor Government guidelines to ensure members can sell their animals in a COVID secure manner. Online conferencing is being used for the AGM and is being considered by Trustees to deliver educational and management information to members in lieu of organised workshops and farm visits.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by the Trustees on 10 June 2022, and signed on its behalf by:
A H J Whittle, Director / Trustee
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INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2021, which are set out on pages 6 to 14.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Richard Miller MA (Oxon) FCA, For and on behalf of Dafferns LLP Chartered Accountants, One Eastwood, Harry Weston Road, Binley Business Park Coventry, CV3 2UB Dated 10 June 2022
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | funds | |
|---|---|---|
| INCOME FROM: | 2021 | 2020 |
| £ | £ | |
| Donations and legacies | ||
| Donations | 500 | - |
| Gift aid | 1,109 | - |
| Charitable activities | ||
| Members subscriptions | 13,797 | 14,196 |
| Herd book entry fees | 21,940 | 30,005 |
| Classification fees | 5,044 | 5,676 |
| Other fees | 325 | 285 |
| Coates’ herd book | 40 | 75 |
| Shorthorn journal | 6,960 | 5,875 |
| Merchandise | 259 | 440 |
| Shows and events | 575 | 100 |
| World conference 2019 | - | - |
| Sundry income | 117 | 62 |
| Management fees | 17,500 | 15,324 |
| Profit on sale of fixed assets | - | 9,399 |
| Investment income | ||
| Interest on deposits | 151 | 25 |
| Dividend income | 7,980 | 8,237 |
| Gift aid donation from trading subsidiary | 54,027 | 26,935 |
| Total income | 130,324 | 116,634 |
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | funds | |
|---|---|---|
| RESOURCES EXPENDED | 2021 | 2020 |
| £ | £ | |
| Charitable activities | ||
| Shorthorn journal | 6,531 | 6,388 |
| Shows and events | 2,427 | 568 |
| World conference 2019 | - | - |
| Classifications | 5,139 | 6,088 |
| Merchandise | 440 | 462 |
| Publicity | 6,435 | 3,688 |
| Breed development | 1,101 | 1,091 |
| Support costs (not allocated) | ||
| Salaries and national insurance | 19,186 | 18,437 |
| Breed secretary’s fees and expenses | 25,620 | 21,873 |
| Social media fees and expenses | 3,974 | 2,861 |
| Rent and rates | 5,590 | 10,960 |
| Light and heat | 63 | 183 |
| Insurance | 2,118 | 2,007 |
| Telephone and postage | 2,848 | 3,421 |
| Printing and stationery | 523 | 955 |
| Staff travelling and entertaining | - | 73 |
| Repairs and maintenance | 5,213 | 3,573 |
| Bank charges | 1,015 | 358 |
| Sundry expenses | 294 | 259 |
| Lease of equipment | 993 | 1,002 |
| Council meetings expenses | 343 | 450 |
| Independent examination | 3,800 | 2,960 |
| Legal and professional fees | 1,919 | 2,322 |
| Bad debts | - | 490 |
| Depreciation | 530 | 1,413 |
| Total expenditure | 96,102 | 91,882 |
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | funds | ||
|---|---|---|---|
| Note | 2021 | 2020 | |
| £ | £ | ||
| Income | 130,324 | 116,634 | |
| Expenditure | 96,102 | 91,882 | |
| 34,222 |
24,752 | ||
| Net gains / (losses) on investments | 40,269 | (3,577) | |
| Net income / movement in funds | 74,491 | 21,175 | |
| Fund balances at 1 January 2021 | 322,312 | 301,137 | |
| Fund balances at 31 December 2021 | 396,803 | 322,312 |
The notes on pages 10 to 15 form an integral part of these financial statements
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND (REGISTERED NUMBER: 00009597)
BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Intangible assets 7 Tangible assets 8 Investments 9 Current assets Stock Debtors 10 Charities deposit Bank balances and cash Current liabilities Creditors - amounts falling due within one year 11 Net current assets Net assets Financed by: Reserves Unrestricted funds 12 |
2021 £ - 38,855 8,929 120,843 168,627 53,279 |
£ 5 1,594 279,856 281,455 115,348 396,803 396,803 |
2020 £ - 34,750 8,864 72,379 115,993 35,397 |
£ 5 2,124 239,587 241,716 80,596 322,312 322,312 |
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 31st December 2021.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors and trustees acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of the accounts.
These financial statements have been prepared in accordance with the provisions applicable to small companies’ subject to the small companies’ regime and in accordance with FRS 102 SORP.
The financial statements were approved by the Council on 10 June 2022 and were signed on its behalf by:
A H J Whittle, Director / Trustee
The notes on pages 10 to 15 form an integral part of these financial statements.
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1. General information and basis of preparation
The Shorthorn Society of the United Kingdom of Great Britain and Ireland is a private company, limited by guarantee, registered in England and Wales. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are to encourage, promote and improve the breeding of Shorthorn cattle in the United Kingdom of Great Britain and Ireland, or elsewhere and to compile and maintain a Herdbook of recognised and purebred Shorthorn cattle.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006, and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling (£) which is the functional currency of the charity and rounded to the nearest pound.
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.
2. Accounting policies
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds can only be used in accordance with the restriction imposed upon them.
Income recognition
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies
Gift aid payments
Gift aid payments are recognised as distributions to owners from retained earnings with there being no legal obligation to make payments.
The accounting policy for gift aid payments also results in the company recognising a taxation charge on its profits for the year. However, the application of the exception under paragraph 29.14A of FRS 102 provides relief in respect of the accounting for the tax charge. This results in an overall nil impact on the charge for tax in the Income Statement. This exception is only applicable as it is probable that the gift aid payment will be made by the company to the parent charity within 9 months of the reporting date.
Expenditure recognition
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably.
Intangible fixed assets
The intangible fixed asset comprises the copyright of the Coates Herd Book and is stated at cost.
Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Leasehold buildings Written off in 2020 Equipment 10% - 20% straight line
Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SOFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
The investment in the subsidiary is measured at cost less impairment.
Stocks
Stock has been valued at the lower of cost and net realisable value.
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.
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies
Operating leases
Rentals payable and receivable under operating leases are charged to the SOFA on a straight-line basis over the period of the lease.
Pensions
The company operates defined contribution pension schemes. Contributions payable during the year are charged in the statement of financial activities in the period to which they relate.
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.
Related company and consolidation
The company owns 100% of the issued ordinary share capital of Shorthorn Sires UK Limited (incorporated in the United Kingdom). The company and its subsidiary comprise a small group. The company has therefore taken advantage of the exemption provided by section 398 of the Companies Act 2006 not to prepare group accounts.
3. Net income
Net income is stated after charging: Depreciation of tangible fixed assets Operating lease costs And after crediting: Profit on sale of fixed assets |
2021 £ 530 993 - |
2020 £ 1,413 942 9,399 |
|---|---|---|
4. Independent examiners remuneration
The independent examiners remuneration amounts to an independent examination fee of £1,800 and accountancy and other services of £2,000.
5. Trustee remuneration and other benefits
No trustees’ remuneration or other benefits were paid during the year.
Trustees’ expenses
-
- Reimbursed travel expenses
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
6. Staff numbers and costs
| The average number of persons employed by the Society during the year was: Administration Staff costs were: Salaries and subcontract Employers pension No employee received emoluments of more than £60,000. angible fixed assets Copyright at cost – Coates’ Herd Book |
1 18,630 556 19,186 5 |
1 17,900 537 18,437 5 |
|---|---|---|
7. Intangible fixed assets
8. Tangible fixed assets
| Equipment £ Cost At 1 January 2021 7,851 Additions - Disposals - At 31 December 2021 7,851 Depreciation At 1 January 2021 5,727 Charge for the year 530 Disposals - At 31 December 2021 6,257 Net book value At 31 December 2021 1,594 At 31 December 2020 2,124 |
Total £ 7,851 - - 7,851 5,727 530 - 6,257 1,594 2,124 |
|---|---|
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
9. Investments
| 9. Investments | ||
|---|---|---|
Listed investments held 1 January 2020 Purchases at cost Sales proceeds Revaluation Listed investments held 31 December 2020 (all quoted on a recognised stock exchange) Shares in group company Shares in subsidiaries Name: Shorthorn Sires UK Limited Company number: 02937523 (England and Wales) Nature of business: Selling of Shorthorn semen Class of shares: Ordinary - Holding: 100% Aggregate capital and reserves Profit / (loss) for the year 10. Debtors Trade debtors Amount owed by group company Prepayments 11. Creditors: amounts falling due within one year Trade creditors Deferred income Taxation and social security Value added tax Other creditors Accruals 12. Funds All funds are unrestricted |
2021 £ 238,587 - - 40,269 278,856 1,000 279,856 79,810 70,516 2021 £ 20,777 14,042 4,036 38,855 4,953 40,030 582 3,182 - 4,532 53,279 |
2020 £ 242,164 - - (3,577) 238,587 1,000 239,587 63,321 54,027 2020 £ 15,161 15,692 3,897 34,750 7,569 18,280 252 5,522 121 3,653 35,397 |
13. Other financial commitments
Total amount of financial commitments and contingencies is £5,982
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SHORTHORN SOCIETY OF THE UNITED KINGDOM OF GREAT BRITAIN AND IRELAND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
14. Related company and consolidation
The Society owns 100% of the issued share capital of Shorthorn Sires Limited, formerly Red Cattle Genetics (Stoneleigh) Limited (incorporated in the United Kingdom) which sells Shorthorn semen. Its trading results for the year, as extracted from the unaudited accounts are as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Turnover | 144,668 | 131,723 |
| Cost of sales | 48,476 | 56,986 |
| Gross profit | 96,192 | 74,737 |
| Administrative expenses | 25,676 | 20,710 |
| 70,516 | 54,027 | |
| Interest receivable | - | - |
| 70,516 | 54,027 | |
| Gift aid donation | 54,027 | 26,935 |
| Retained income | 16,489 | 27,092 |
| Prior year adjustment | - | - |
| Reserves 1 January 2021 | 63,321 | 36,229 |
| Reserves 31 December 2021 | 79,810 | 63,321 |
15. Related party transactions
There were no material related party transactions during the year.