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2024-03-31-accounts

BRIDGE ESTATE ANNUAL REPORT

BRIDGE ESTATE

ANNUAL REPORT

for the year ended 31 March 2024

Registered Charity Number: 220716

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BRIDGE ESTATE ANNUAL REPORT

CONTENTS

Page Details

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BRIDGE ESTATE ANNUAL REPORT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024

The trustees present their annual report and financial statements of the charity for the year ended 31st March 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, 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 Standards applicable in the UK and Republic of Ireland.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The maintenance and repair of Trent Bridge and approaches remains the primary objective of the charity. Trent Bridge is the major vehicle communication route from the south of the City and is critical in bringing economic benefit to the City. This is increasingly important in light of the downturn in the global and national economy. The bridge is open to the public at large, assuring public benefit on an open access basis. There are no restrictions regarding the members of the public who may use the bridge and no fees are charged.

The Trustees’ Annual Report for the year ending 31 March 2024 confirms that any residual income is applied to the Trust’s charitable objectives as defined below, this includes the improvement of the City of Nottingham in support of the Council’s aims and objectives, as set out in the Council Plan and Medium Term Financial Strategy. This is delivered through the maintenance and protection of the Trust’s portfolio of income producing assets.

A proportion of the surplus income generated by the charity is transferred to Nottingham City Council’s (NCC) General Fund and is used for the benefit of the citizens of Nottingham. As referred to above, the surplus contributes directly to the delivery of Nottingham’s priorities as set out in the Council Plan and enables the Council to provide the citizens of Nottingham with effective and efficient services. Further surplus income has been retained in the Trust for investment in its portfolio.

The Bridge Estate fixed asset portfolio will be actively managed to secure new investment properties, increase income and reduce risk in an uncertain market.

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives.

Objectives

The initial sole objective of the Bridge Estate was the provision of funds for the maintenance and repair of Trent Bridge. However, by the late nineteenth century the income generated by the Estate was in excess of that required for maintenance of Trent Bridge and consequently the objectives of the Estate were extended by virtue of section 78 of the Nottingham Corporation Act 1882.

The Bridge Estate’s charitable objectives are now threefold:

  1. To provide for the efficient maintenance and repair of Trent Bridge and the approaches to it.

  2. To provide a contingency fund for the possible construction of such new bridge or bridges over the River Trent as may be found necessary or desirable.

  3. To apply the residue of any income as the trustees thinks best for the improvement of the City of Nottingham and the public benefit of its inhabitants.

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BRIDGE ESTATE ANNUAL REPORT

Main objectives for the financial year 2024/25 -

  1. To ensure the necessary financial provision is available if required to provide a vehicle and pedestrian communication link for the City of Nottingham via Trent Bridge.

  2. The continued development of the Trust’s property portfolio with a view to minimizing the risk of exposure to adverse economic conditions and protecting and increasing its income and capital value of its assets.

  3. Surplus revenue generated by the Charity to be invested for the public benefit of the City of Nottingham’s inhabitants.

Strategies adopted in the management of the property portfolio

The Bridge Estate’s stated objectives of setting up a contingency fund for the maintenance and repair of Trent Bridge and to accumulate a fund to build a new bridge, should this be necessary, is effectively met by the management of the property portfolio. In practice, although properties could either be sold or mortgaged to fund such expenditure, the current local government context means that there are more efficient and effective ways of raising the funds required to maintain or to replace Trent Bridge. NCC is able to earmark funds from the Local Transport Plan for this purpose and substituting Bridge Estate funds would unnecessarily run down the value of the portfolio. Trent Bridge forms part of the adopted highway network, with maintenance and repairs overseen by the Highway Authority, with the Bridge Estate providing funds as necessary for the carrying out of these works.

Funds generated by the Bridge Estate holding, either through day-to-day operations or sale/mortgage would, in this context, only be applied where other funding routes have been exhausted. For the latter option, Trustees recognise that the ability to generate the level of sales required to replace the Trent Bridge would be difficult to achieve in the short-term and in any case could not meet the full cost of replacing the structure – further confirming the need of working, where possible, within the current local government financial context. There is a further restriction on the ability to generate funds in this way through the possibility that historic restrictions on the disposal of specific ‘endowed’ properties may exist.

The property portfolio includes a number of commercial properties including: retail; office; industrial; ground leases; agricultural holdings; and a miscellaneous range of other properties.

Investment risk whilst held in a single investment class (except money held on interest awaiting reinvestment) is in effect spread through the diverse range of property type, location and tenure.

To maximise return on investment, the Charity is obliged to let properties at full market rent and lettings on full repairing and insuring terms where it is practical to do so. In the case of multi occupied premises where the landlord is responsible for external repairs, heating, cleaning common parts, insurance etc., the costs are generally recovered by way of additional service charge.

The rents of properties leased for a term of years are reviewed in accordance with the terms of the agreement and current market conditions and short term ‘periodic’ tenancies are generally reviewed every 3 years. In the case of expiring leases, these are either renewed on negotiated terms or marketed for reletting where the original lessee does not wish to continue. In all cases, terms will be negotiated to secure the best outcome for the Charity including where possible an increased rent unless there are other objectives that the Trustees wish to secure.

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BRIDGE ESTATE ANNUAL REPORT

ACHIEVEMENTS and PERFORMANCE

The sole activity of the Bridge Estate is investing, through property ownership, to generate income that is utilised for the objectives of the Charity and to increase rental income and to grow the capital value of its assets, to further the charitable purposes to maintain Trent Bridge and for the benefit of the citizens of Nottingham. Strategic Assets and Property, a division of NCC’s Development and Growth Department, manage the property portfolio on behalf of Bridge Estate. A dedicated Chartered Surveyor is assigned to this role.

In summary, the following has been undertaken over the past 12 months (April 2023 – March 2024):

There is an ongoing strategic review of the portfolio to identify assets held by the Trust which could be sold and generate investment capital. Should disposals be approved by the Trustees, total capital reserves will provide the Trust with the opportunity to secure positive reinvestment in the portfolio, either through the acquisition of new assets or the improvement or refurbishment of existing properties. The policy remains to achieve market rates for rental, ensuring the charity receives value for money across its asset base.

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BRIDGE ESTATE ANNUAL REPORT

FINANCIAL REVIEW

The financial statements of the Bridge Estate are included in the following pages. The statements include comparative figures for the previous year and consist of the following:

The Trustees confirm that the Trust’s assets are available and adequate to fulfill the obligations of the Trust. Nottingham City Council is required to publish International Financial Reporting Standards (IFRS) compliant accounts. The Bridge Estate forms part of NCC’s Group Accounts, and therefore the accounts have been consolidated on this basis. No adjustments were required to these accounts upon consolidation.

Policy on reserves

The Charity may hold reserves or funds to even out the financial impact of significant costs for any particular year. The Charity’s objectives state that any residue of any income should be used for the improvement of the City of Nottingham and the public benefit of its inhabitants, therefore any remaining net income over what is required to be set aside for prudent asset management is transferred to NCC’s General Fund.

The actual Surplus transferred was £571,000 for 2023/24 (£750,000 2022/23). Further details on reserves can be found in the notes to the accounts.

Investment Policy

The Investment Policy is to seek to achieve an absolute return over the long term in order to meet increases in expenditure and maintain the Trust’s fund in real terms. Any funds generated by the sale of property are temporarily invested until a new investment opportunity is identified by the property manager, in consultation with the Trusts and Charities Committee. When investing Bridge Estate Funds, NCC adhere to their Investment Strategy which complies with the Local Government Act 2003 in support of obtaining the best yield for the Trust.

Risk Management

The Bridge Estate adopts the NCC’s Risk Management Policy, tailored as appropriate for the Trust. The Trustees are committed to a programme of risk management to protect the Charity’s assets. A Risk Register is held which identifies the key risks and the measures in place to mitigate such risks. Procedures are also in place to ensure that appropriate advice and support is provided to Trusts and Charities Committee as and when required.

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BRIDGE ESTATE ANNUAL REPORT

Review of financial position

Below is a summary of the income generated and resources expended:

2023/24 2022/23
(£) (£)
INCOMING RESOURCES (1,750,550) (1,850,245)
RESOURCES EXPENDED
Surplus transferred to NCC General
Fund		 571,000 750,000
Raising Funds 806,154 388,351
Charitable Actvites 160,437 131,805
Other 46,243 51,110
Increase / (Decrease) in Loss Allowance (161,203) 260,879
Net Contributon to/ (from)reserves 327,919 268,100
1,750,550 1,850,245

PLANS FOR FUTURE PERIODS

A property investment portfolio is a dynamic resource and needs to be actively managed if it is to develop and resist the effects of economic change. The principal focus should be on proactive management of the portfolio’s income profile, maximising income from existing properties, acquiring prime assets in favour of secondary stock where possible and developing a mix of investments aimed at creating stability, secure income, capital and revenue growth and minimised risk.

The current portfolio includes some of these elements:

The Trust holds some good quality assets evidenced by the Alexander Fleming Building at the Nottingham Science Park, retail premises on Lister Gate/Wheeler Gate and offices at Century House on Chapel Bar and Castle Marina.

The strategy is based on the following principles:

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BRIDGE ESTATE ANNUAL REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure of the charity

Bridge Estate is a charity of which NCC elected members are representing the Council as sole trustee of the Bridge Estate Charity.

All transactions relating to the Bridge Estate are subject to the same Financial Regulations and procedures as those relating to land and property held by NCC. The Annual Report and Financial Statements are reported to and approved by Councillors’ of the Trusts and Charities Committee each year.

Governing document

Royal Charter Dated 21 February 1551.

The earliest mention discovered of the Bridge Estate is in 1302. From that date various bequests of land and property were made, the income from which was devoted to the maintenance of bridges over the River Trent.

In 1550, Edward VI made a grant by charter of the “lands, tenements and hereditaments” of two monasteries which had been dissolved by his father Henry VIII. The grant was made to the “Mayor and Burgesses of the town of Nottingham, and to their successors for ever”, and was stated to be to fulfill a promise of Henry VIII “in consideration of the great charges and expenses daily sustained by his well-beloved the Mayor and Burgesses of his town of Nottingham in and about the mending, sustaining and repairing of their bridges over the water of Trent".

Bridge Estate was thus created by Royal Charter on 21 February 1551 with the then Corporation as sole trustee.

It was established in 1945 that Bridge Estate was and had from the beginning been a Charity. Consequently,

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BRIDGE ESTATE ANNUAL REPORT

the property of the Estate and the Council elected members as Trustees, are subject to the law affecting charitable trusts, the jurisdiction of the Charity Commissioners and the provisions of the Charities Act 2011, various statutes and the provisions of Charity Law.

Trustees’ selection methods

Nottingham City Council (NCC) elected members are the Council’s representatives for the Bridge Estate.

NCC has elected members who are elected on a 4 year cycle. The following table details the councillors / trustees for the financial year 1 April 2023 to 31 March 2024 and also includes all post year trustee movements, following local elections:

Councillor Adele Williams Councillor Linda Woodings
Councillor AJ Matsiko Councillor Maria Joannou
Councillor Andrew Rule Councillor Maria Watson
Councillor Angela Kandola Councillor Mat Shannon
Councillor Angharad Roberts(resigned May-23) Councillor Merlita Bryan(resigned May-23)
Councillor Anne Peach(resigned May-23) Councillor Michael Edwards
Councillor Anwar Khan Councillor Michael Savage
Councillor Audra Wynter Councillor Nick Raine
Councillor AudreyDinnall Councillor Mohammed Saghir(resigned May-23)
Councillor Azad Choudhry (resigned May-23) Councillor Nadia Farhat
Councillor Carole McCulloch Councillor Naim Saqab Salim
Councillor Cate Woodward(resigned May-23) Councillor Nayab Patel
Councillor Cheryl Barnard Councillor Neghat Khan
Councillor Corall Jenkins Councillor Nicola Heaton(resigned May-23)
Councillor Dave Liversidge(resigned May-23) Councillor Patence Uloma Ifediora
Councillor David Mellen Councillor Pavlos Kotsonis
Councillor David Trimble(resigned May-23) Councillor Phil Jackson(resigned May-23)
Councillor DevontayOkure Councillor Rebecca Langton(resigned May-23)
Councillor Ethan Radford Councillor Roger Steel(resigned May-23)
Councillor Eunice Campbell-Clark(resigned May-23) Councillor RosemaryHealy (resigned May-23)
Councillor Eunice Regan Councillor SajAhmad
Councillor Faith Gakanje-Ajala Councillor Sajid Mohammed
Councillor Farzanna Mahmood Councillor SallyLongford(resigned May-23)
Councillor Fozia Mubashar Councillor Salma Mumtaz
Councillor Georgia Power Councillor Sam Harris
Councillor Graham Chapman Councillor Sam Lux
Councillor Gul Khan Councillor Sam Webster(resigned May-23)
Councillor HayleySpain Councillor Samina Riaz
Councillor Hassan Ahmed(resigned May-23) Councillor Samuel Gardiner
Councillor Helen Kalsi Councillor Sana Nasir
Councillor Imran Jalil Councillor Sarita-Marie Rehman-Wall
Councillor Jane Lakey (resigned May-23) Councillor ShugufahQuddoos
Councillor Jawaid Khalil(resigned May-23) Councillor Steve Batlemuch
Councillor JayHayes Councillor Sue Johnson(resigned May-23)
Councillor Kevin Clarke Councillor Sulcan Mahmood
Councillor KirstyJones(Notngham Independents) Councillor TobyNeal(resigned May-23)

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BRIDGE ESTATE ANNUAL REPORT

Councillor Kirsty L Jones (Nottingham Peoples Councillor Wendy Smith (resigned May-23) Alliance) Councillor Leslie Ayoola Councillor Zafran Khan Councillor Liaqat Ali

Trusts and Charities Committee

Councillors are appointed to membership of the Trusts and Charities Committee by full Council to fulfil the Council’s responsibilities as Trustees. The Constitution allows that where in-year changes are required to memberships, either at the request of the relevant political group or because a member has resigned or ceased to be eligible for membership, the Corporate Director of Finance and Resources has the authority to action those changes subject to political balance being preserved where applicable and to the changes made being reported to the next meeting of Council. Details of membership will be updated and published on the Council’s website on an ongoing basis. The following is the current list of the Trusts and Charities Committee appointed members (following the May 2023 Local Election) who approve the Annual Report and financial statements for the financial year 1 April 2023 to 31 March 2024:

Councillor Zafran Khan (Chair) Councillor Faith Gakenje-Ajala (resigned Oct-23) Councillor Farzanna Mahmood (resigned May-26) Councillor Salma Mumtaz Councillor Sana Nasir Councillor Sarita-Marie Rehman-Wall (resigned May-26) Councillor Steve Battlemuch (appointed May-24) Councillor Fozia Mubashar (appointed May- 24) Councillor Liaqat Ali (appointed May-26) Councillor Devontay Okure (appointed May-26) Councillor Andrew Rule Councillor Kirsty Jones (Previous Chair – resigned May-24) Councillor Anwar Khan (resigned May-24 and reappointed Nov-25)

Induction and training of Trusts and Charities Committee

Following appointment, councillors are invited to attend an induction which includes training on their role and responsibilities on behalf of the Trustees, with regard to the public benefit requirement. The historical background, policies and procedures of Bridge Estate are also covered, and the councillors receive copies of Charity Commission published guidance.

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BRIDGE ESTATE ANNUAL REPORT

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Name Bridge Estate
Charity Number 220716
Registered Address Nottingham City Council
Loxley House
Station Street
Nottingham
NG2 3NG
Charity’s Trustees Councillors of Nottingham City Council
Day to Day Management Director of Economic Development & Property
Directorate
Loxley House
Station Street
Nottingham
NG2 3NG
Auditors Rogers Spencer
Newstead House
Pelham Road
Nottingham
NG5 1AP
Financial Advisor Corporate Director of Finance and Resources
Nottingham City Council
Loxley House
Station Street
Nottingham
NG2 3NG
Bankers Lloyds Bank
Parliament Street Nottingham
12-16 Lower Parliament Street
Nottingham
NG1 3DA

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BRIDGE ESTATE ANNUAL REPORT

RESPONSIBILITIES OF THE TRUSTEES

The Trustees’ Responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements 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 that 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 governing document. 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 confirm, so far as they are aware, that:

Going Concern Statement

The Trustees have assessed the charity’s ability to continue as a going concern and are satisfied that it has adequate resources to remain in operation for the foreseeable future. The financial statements have therefore been prepared on a going concern basis.

In reaching this conclusion, the Trustees have considered the charity’s financial position, cash flows and forecasts. The Bridge Estate holds a substantial investment property portfolio, valued at £25.36 million at 31 March 2024. While the year includes a revaluation loss of £11.6 million, this is non-cash in nature and does not affect the charity’s ability to meet its obligations.

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BRIDGE ESTATE ANNUAL REPORT

The charity continues to generate stable rental income, with total income of £1.75 million in 2023/24, and maintains positive cash balances of £1.48 million and net current assets of £0.75 million at year end. These provide sufficient liquidity to meet short-term liabilities.

The Trustees have reviewed budgets and cash flow forecasts for a period of at least twelve months from the date of approval of these financial statements. These forecasts, which include assumptions on rental income, expenditure, and planned asset management activity, demonstrate that the charity will be able to meet its liabilities as they fall due.

Taking account of the strength of the asset base, available cash resources, and forecast income, the Trustees have not identified any material uncertainties that would cast significant doubt on the charity’s ability to continue as a going concern.

Approved by the Trusts and Charities Committee and signed on behalf of Nottingham City Council by:

Date: 25 August, 2026.

Cllr Zafran Nawaz Khan (Chair), Signed for the Trustees

The notes form part of these accounts.

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BRIDGE ESTATE ANNUAL REPORT

Statement of Financial Actvites for the year ending 31 March 2024

2023/24 2022/23
Unrestricted
Funds
Endowment
Funds
Total Funds		 Unrestricted
Funds
Endowment
Funds
Total Funds
£
£
£		 £
£
£
Income and endowments from:
Other Trading Actvites (1,692,624)
-
(1,692,624)		 (1,784,350)
-
(1,784,350)

Investments		 (57,926)
-
(57,926)		 (39,600)
-
(39,600)
Other -
-
-		 (26,295)
-
(26,295)
Total (1,750,550)
-
(1,750,550)		 (1,850,245)
-
(1,850,245)
Expenditure on:
Raising Funds -
806,154
806,154		 -
388,351
388,351
Charitable Actvites 160,437
160,437		 41,048
90,757
131,805

Charitable Actvites - Transfer to NCC		 571,000
-
571,000		 750,000
-
750,000

Increase / (Decrease) in Loss
Allowance		 (161,203)
-
(161,203)		 260,879
-
260,879
Other -
46,243
46,243		 -
51,110
51,110
Total 409,797
1,012,834
1,422,631		 1,051,927
530,218
1,582,145
Net (income) /expenditure (1,340,753)
1,012,834
(327,919)		 (798,318)
530,218
(268,100)
Transfer between Funds 1,012,834
(1,012,834)
-		 631,198
(631,198)
-
Other Recognised (Gains)/Losses
(Gains)/losses on Revaluaton of
Investment Propertes		 -
11,616,100
11,616,100		 -
(5,008,698)
(5,008,698)
(Gains)/losses of following Fair Value
assessment of Financial Investments		 -
(89,205)
(89,205)		 -
6,241
6,241
Other (gains)/losses 11,801
-
11,801		 -
(526)
(526)
Net Movement in Funds (316,118)
11,526,895
11,210,777		 (167,120)
(5,103,963)
(5,271,083)
Reconciliaton of Funds
Total Funds Brought Forward (829,689)
(35,823,385)
(36,653,074)		 (662,569)
(30,719,422)
(31,381,991)
Total Funds Carried Forward (1,145,807)
(24,296,490)
(25,442,297)		 (829,689)
(35,823,385)
(36,653,074)

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BRIDGE ESTATE ANNUAL REPORT

Balance Sheet as at 31st March 2024

Note 2023/24
2022/23
(£)
(£)
Fixed Assets
Property Investments
6
Investments at Fair Value through Statement of Financial
Activities
7
Total Fixed Assets
Current Assets
Debtors (net of Bad Debt Provision)
8
Cash at Bank
8
Total Current Assets
Liabilities
Creditors - Amounts falling due within one year
9
Net Current Assets
Total Assets Less Current Liabilities
Creditors - Amounts falling due after one year
9
Long Term Borrowing
9
NET ASSETS
The Funds of the Charity
Endowment Fund
Unrestricted Funds
TOTAL CHARITY FUNDS		 25,360,000
36,976,100
815,274
726,069
26,175,274
37,702,169
1,953,374
1,264,140
1,475,893
1,147,033
3,429,267
2,411,173
(2,679,103)
(1,796,844)
750,164
614,329
26,925,438
38,316,498
(40,879)
(40,879)
(1,442,262)
(1,622,545)
25,442,297
36,653,074
(24,296,490)
(35,823,385)
(1,145,807)
(829,689)
(25,442,297)
(36,653,074)

Approved by the Trusts and Charities Committee and signed on behalf of Nottingham City Council by:

Date: 25 June 2026

Stuart Fair - Corporate Director of Finance and Resources

Date: 25 August 2026 Cllr Zafran Nawaz Khan (Chair), Signed for the Trustees

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BRIDGE ESTATE ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

1. Accounting Policies

General Principles

The Annual Report summarises the Bridge Estate transactions for 2023/24 financial year together with its financial position at 31 March 2024.

This section explains the accounting policies applied in producing the Annual Report for the Bridge Estate. Accounting policies are the principles, bases, conventions and rules by which transactions are recognised, measured and presented in the accounts.

Basis of preparation and assessment of going concern

The accounts have been prepared in accordance with the charity's governing document, 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 (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and UK Generally Accepted Accounting Practice. The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.

The cash flow statement forms part of the Nottingham City Council's group accounts.

The Trust constitutes a public benefit entity as defined by FRS102.

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

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.

Income Recognition

Income receipts are accrued and accounted for in the period to which they relate. Payments received in advance are recognised as a liability on the balance sheet within creditors.

Rental income is recorded when the invoices are raised and become due for payment.

Expenditure Recognition

All expenditure is accrued and accounted for in the period during which they are consumed or received. Accruals have been made for all material sums unpaid at the year-end for goods or services received or work completed. Receipts received in advance are recognised as an asset on the balance sheet within debtors. Expenditure is classified under the following activity headings:

Raising Funds

Costs of raising funds includes premises expenses, which includes day to day maintenance, insurance and external audit fees. These are initially charged against the Endowment Fund in the SoFA, as recommended in the Charities SORP, but transferred to Unrestricted Funds within Gross Transfer between Funds.

Charitable Actvites

The costs of governance arrangements, which relate to the general running of the charity, as opposed to direct management functions inherent in generating funds, service delivery and programme. These activities provide the governance infrastructure, which allows the charity to operate and to generate the information required for public accountability.

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BRIDGE ESTATE ANNUAL REPORT

Charitable Actvites – Transfer to NCC

The net expenditure or income of the Bridge Estate is transferred to NCC’s General Fund for the benefit of the citizens of Nottingham.

Other

Expenditure which does not fall into any of the above categories.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Other recognised Gains/(losses)

The gains/(losses) on investment assets, represents the differences between proceeds received on disposals and their market value at the beginning of the year.

The gains/(losses) on revaluation of investment assets represents material changes in property valuations.

Fixed Assets

Investment propertes

Investment properties are those used solely to earn rentals and/or for capital appreciation for the Bridge Estate. Investment properties are measured initially at cost. They are not depreciated but are revalued annually according to market conditions at year-end.

The 2023/24 valuations have been carried out in accordance with current RICS. Gains and losses on revaluation and on disposal are shown within the SOFA. However as revaluation and disposal gains and losses are not allowed by statute to impact on the financial activities of the Bridge Estate, they do not form part of the income and expenditure totals, but provide details within the SOFA of the movement on the Endowment Fund. Any sale proceeds are posted to the Endowment Fund.

Rental income from investment properties is credited to investment income within the SOFA.

Where land or property is held as a community asset, dedicated for the enjoyment of the public in perpetuity they are given a value of £NIL.

Other investments

Other investments are included in the Balance Sheet at market value and include loans and government stocks.

Accruals of Expenditure and Income

The accounts of the Bridge Estate are maintained on an accruals basis. This means that sums due to or from the Bridge Estate during the year are included whether or not the cash has actually been received or paid in the year. Where income and expenditure has been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the balance sheet. Cash received or paid and not yet recognised as income or expenditure is shown as a creditor (receipt in advance) or debtor (payment in advance) in the balance sheet and the SOFA adjusted accordingly. Fees, charges and rents due from customers are accounted for as income at the date that the Bridge Estate provides the associated goods or services.

This policy is not followed for certain quarterly payments, including gas and electricity, where expenditure is recorded at the date of meter reading rather than being apportioned between financial years. This policy is consistently applied each year and, therefore, does not have a material effect on the year's accounts.

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BRIDGE ESTATE ANNUAL REPORT

Where it is doubtful that a debt will be settled, the balance of debtors is written down and a charge made to the SoFA for the income that might not be collected. This bad debt provision is offset against the debtor balance on the balance sheet.

Cash

Cash is represented by deposits held within the Bridge Estate bank account.

Funds of the Charity

Endowment fund

The capital of the Bridge Estate is held as a permanent endowment fund. There is no power to convert the capital into income; the fund must generally be held indefinitely.

Unrestricted income fund

This fund has been established so that the cost of repairing Trent Bridge was spread out and does not impact on the finances of the Charity in a particular year. In 2006/07 an additional Renewal and Repairs Fund was set up to meet the cost of repairs to the housing stock held by the Bridge Estate. Annual contributions are made to the fund and repairs costs are charged to the SoFA in the year they are carried out, with transfers being taken from the fund.

The income from the fund is unrestricted income but it is expendable at the discretion of the active trustees in the furtherance of the charity’s objectives.

2. Tax status of the Bridge Estate

Bridge Estate is a registered charity and is therefore exempt from income tax and capital gains tax on income and gains falling within S531 ITA 2007 and S256 CGA 1992. Nottingham City Council is the sole trustee of the Bridge Estate and, in accordance with VAT notice 749, is entitled to recover VAT incurred on the expenditure of the Bridge Estate under section 33 of the VAT Act 1994.

3. Summary of Fund Movements

2023/24
2022/23
Endowment
Fund
Unrestricted
Funds
TOTAL
Endowment
Fund
Unrestricte
d Funds
TOTAL
£
£
£
£
£
£
Balance B/fwd
Incoming
Resources
Outgoing
Resources
Transfers
Gains and Losses
Other Movements
Balances C/fwd		 (35,823,385)
(829,689)
(36,653,074)
(30,719,422)
(662,569)
(31,381,991)
-
(1,750,550)
(1,750,550)
-
(1,850,245)
(1,850,245)
1,012,834
409,797
1,422,631
530,218
1,051,927
1,582,145
(1,012,834)
1,012,834
-
(631,198)
631,198
-
11,526,895
-
11,526,895
(5,002,457)
-
(5,002,457)
-
11,801
11,801
(526)
-
(526)
(24,296,490
)
(1,145,807)
(25,442,297)
(35,823,385)
(829,689)
(36,653,074)

Incoming Resources

As a general rule, incoming capital resources to the Bridge Estate are generated by the sale of investment properties or the payment of premiums in respect of the re-gearing of long leaseholds. The Bridge Estate capital fund is a permanent endowment fund which means that it cannot usually be spent as income. Thus, any income generated by the sale of freehold land or buildings, or the re-gearing of long leaseholds

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BRIDGE ESTATE ANNUAL REPORT

on payment of a premium, must be reinvested in the purchase or improvement of freehold land and buildings.

At the discretion of the Charity Commission, funds may be spent on infra-structure assets but any sum spent will have to be recouped and the capital fund replenished.

Other Recognised (Gains)/Losses

The annual revaluation of the property portfolio has been completed in 2023/24 resulting in a net loss on revaluation of assets of £11,616,100.

Unrestricted income fund

During 2023/24 the Bridge Repairs Fund received a contribution of £94,511 which is set aside for future works to the Bridge (£67,293 contribution 2022/23), while the unrestricted funds had a contribution of £233,408 (£200,807 2022/23).

4. Income and Expenditure Detailed Analysis

2023/24
2022/23
£
£
INCOME
Rent (net of movement in Loss Allowance)
Service Charges
Interest Received
Other
EXPENDITURE
Raising Funds
Agency and Contracted Services
Grounds Maintenance
Investment Management Costs
Business Rates
Energy Costs & Water
Property Maintenance (inc Bridge)
Rent Collecton
Supplies and Services
Charitable Actvites
Surplus transferred to NCC General Fund
Audit Costs
Support Costs
Management and Administraton
Other
Interest Payable
Movement to Funds
Contributon to / (from) Bridge Repairs Fund
Contributon to / (from) Unrestricted Fund		 (1,824,064)
(1,497,411)
(29,763)
(26,060)
(57,926)
(39,600)
-
(26,295)
(1,911,753)
(1,589,366)
4,787
5,213
197,121
250,128
445,793
46,122
102,693
19,495
22,534
22,534
33,226
44,859
571,000
750,000
11,450
-
148,987
131,805
46,243
51,110
94,511
67,293
233,408
200,807
1,911,753
1,589,366

5. Allocation of governance and support costs

The breakdown of Charitable Activity support costs and how these were allocated between governance

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BRIDGE ESTATE ANNUAL REPORT

and other costs is shown below:

2023/24
Total
Governance
Related (*)
Other
Support Costs
Basis of Apportonment
£
£
£
Computer Costs
Recharged Staf Costs
Management Fees
Audit Fees
Property Services Costs		 17,100
17,100
-
EMSS Sofware Usage
55,140
23,548
31,592
Staf Time
5,433
5,433
Investment Management Cost
11,450
11,450
-
Audit Fees
71,981
-
71,981
Staf Time
161,104
52,098
109,006
2022/23
Total
Governance
Related (*)
Other
Support Costs
Basis of Apportonment
£
£
£
Computer Costs
Recharged Staf Costs
Property Services Costs		 17,100
17,100
Sofware Usage
55,140
23,548
31,592
Staf Time
59,565
17,500
42,065
Asset Valuaton Costs/Staf Time
131,805
58,148
73,657

(*) Governance Related Costs are met entirely from Unrestricted Funds.

6. Investment Property

Investment property represents assets owned by the Bridge Estate, primarily property and buildings all situated in the United Kingdom. The portfolio of property is mainly investment properties which are valued by independent external valuers in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Standards Manual (the Red Book). Properties held by the Bridge Estate are non-operational properties and as such, the valuation is on the basis of open market value. This area is managed by the Director of Economic Development and Property.

Investment properties in the portfolio are valued at market value in accordance with the Charities SORP. Some properties have a de-minimis value of £NIL as they are community assets, dedicated for the enjoyment of the public in perpetuity.

Assets that are sold are re-valued pending sale and written out of the accounts at this value.

Analysis of the movement in Investment Property 2023/24
2022/23
(£)
(£)
Carrying value (market value) at beginning of year
Add: Capital Expenditure Incurred
Add/deduct: Net gains/(losses) on revaluaton
Carrying value (market value) at end of year		 36,976,100
31,865,896
-
101,506
(11,616,100)
5,008,698
25,360,000
36,976,100

The following properties whose value is greater than £1m, are considered to be material in the context of

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BRIDGE ESTATE ANNUAL REPORT

the investment property list:

the investment property list:
Value Value
Property 2023/24 2022/23
£ £
Woolsthorpe Close, Of Wigman Road, Bilborough 4,323,000 4,300,000
Units 21-29, Whitemoor Court, Nuthall Road 3,000,000 4,082,000
Eastcrof Depot, London Road 3,125,000 3,400,000
The Alexander Fleming Building, Notngham Science and Technology Park,
University Boulevard		 1,260,000 1,888,000
34-38 Lister Gate 1,650,000 1,645,000
Land: 3 Acres at Bull Close Road, Lenton Lane Industrial Estate, Notngham 415,000 1,470,000
Castle Gate House, 24-30 Castle Castle, Notngham 1,380,000 1,460,000
Century House, 8-18 Chapel Bar 900,000 1,450,000
Territorial Army Centre, Wigman Road 510,000 1,387,000
Eastcrof Incinerator Complex,London Road 935,000 1,033,000

7. Other Investments

2023/24
2022/23
£
£
Government Stocks
COIF Accumulaton Units		 1,385
1,385
813,889
724,684
815,274
726,069
Analysis of the movement in Other Investments 2023/24
2022/23
£
£
Carrying value (market value) at beginning of year
Add/deduct: Net gains/(losses) on revaluaton
Carrying value (market value) at end of year		 726,069
732,310
89,205
(6,241)
815,274
726,069

8. Analysis of current assets

Debtors 2023/24
2022/23
£
£
Trading Actvites
Amounts due from subsidiary and associated undertakings		 1,854,860
998,866
98,514
265,273
1,953,374
1,264,140
Cash 2023/24
2022/23
£
£
Cash at bank 1,475,893
1,147,033

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BRIDGE ESTATE ANNUAL REPORT

9. Analysis of current liabilities and long-term creditors

Current Liabilites 2023/24
2022/23
£
£
Amounts due to subsidiary and associated undertakings
(including subsidiary Receipts in Advance)
Other creditors
Receipts in Advance		 (1,963,328)
(1,440,650)
(468,907)
(140,144)
(246,600)
(216,050)
(2,679,103)
(1,796,844)
Long Term Creditors 2023/24
2022/23
£
£
Rent Bonds
Long Term Borrowing		 (40,879)
(40,879)
(1,442,262)
(1,622,545)
(1,483,141)
(1,663,424)

10. Analysis of net assets between funds

2023/24
2022/23
Endowment
Fund
Unrestricted
Fund
Endowment
Fund
Unrestricted
Funds
£
£
£
£
Investment Propertes
Other investments
Debtors (net of Bad Debt Provision)
Cash at Bank
Creditors - Amounts falling due within one year
Creditors - Amounts falling due afer one year
Long Term Borrowing		 25,360,000
36,976,100
-
815,274
726,069
-
1,953,374
-
1,264,140
1,475,893
(75,956)
1,222,989
(436,522)
(2,242,581)
(180,283)
(1,616,561)
(40,879)
-
(40,879)
(1,442,262)
(1,622,545)
-
24,296,490
1,145,807
35,823,385
829,689

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BRIDGE ESTATE ANNUAL REPORT

11. TRANSACTIONS WITH RELATED PARTIES

NCC elected members represent the Council as sole trustees of the Bridge Estate and any related party transactions must be disclosed in accordance with Charity SORP.

A loan of £3,922,881 was approved in 2012/13 to assist in the purchase of an investment property, this loan is for a period of 20 years and for accounting purposes is treated as long term borrowing. The payment started annually on the 31 March 2014. The payments will be made up of £180,283 principal and 2.70% p.a. interest on the average loan balance in the year. In 2023/24 the Bridge Estate paid £46,243 interest (£51,110 2022/23), which is shown within the SoFA under Other Expenditure and shortterm creditors, while the outstanding long-term borrowing at the 31 March 2024 is £1,442,262 (£1,622,545 2022/23) which is shown in the balance sheet.

Monies due from NCC and other group entities (Robin Hood Energy and Nottingham City Homes) at the end of the financial year to the Bridge Estate was £ 98,514 (£265,274 2022/23). Monies owed to NCC and group entities was £1,963,328 (£1,440,650 2022/23).

In addition to transactions involving investments and cash balances, there are other transactions between the Charity and the City Council in respect of the day-to-day operations of the Charity. Trade Debtors balances include £1,056,651.74 of rental income that was collected during the financial year by NCC that was transferred over in the following financial year.

In the year to 31 March 2024 various City Council departments and other Council group entities paid a sum of £535,536 (£565,861 2022/23) in respect of investment properties let by the Charity at current market rents subject to periodic reviews and related service charges. This income is included in the SoFA.

NCC charged the Bridge Estate £155,671 in the year to 31 March 2024 (£131,805 2022/23) in respect of officers’ time and management and maintenance of properties. Of this total it is estimated that £52,098 (£58,148 2022/23) is attributable to the governance of the Charity. These costs relate to the preparation of the final accounts, valuation fees, legal fees and attendance and preparation for the Trusts and Charities Committee meetings.

The Charity had a charge of £4,787 (£5,213 2022/23) for grounds maintenance and contract cleaning to NCC. These transactions are shown within Raising Funds in the SoFA.

Surplus of income over expenditure during the year is transferred to NCC’s General Fund for the improvement of the City of Nottingham and the public benefit of its inhabitants £571,000 (£750,000 2022/23).

During the current financial year, trustees received remuneration of £nil (£nil 2022/23) and had expenses reimbursed of £nil (£nil 2022/23).

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BRIDGE ESTATE ANNUAL REPORT

Independent Auditor’s Report to the Trustees of Bridge Estate

Opinion

We have audited the financial statements of Bridge Estate (the ‘charity’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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.

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BRIDGE ESTATE ANNUAL REPORT

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 other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Independent Auditor’s Report to the Trustees of Bridge Estate (continued)

Responsibilities of trustees

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BRIDGE ESTATE ANNUAL REPORT

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below, which includes how we have assessed risk and our approach to responding to risks identified:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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BRIDGE ESTATE ANNUAL REPORT

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

Use of our report

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

----- Start of picture text -----
………………………..
Rogers Spencer Newstead House
Statutory Auditor Pelham Road
Nottingham
NG5 1AP
28 August 2026
Date
----- End of picture text -----

Rogers Spencer is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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