**Registered number: 00588731 Charity number: 221462** **Christian Publishing & Outreach Limited (A company limited by guarantee)** ## **Unaudited** **Trustees' report and financial statements** **for the 2 month period ended 31 December 2020** **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Contents** ||Page| |---|---| |**Reference and administrative details of the Company, its Trustees and advisers**|1| |**Trustees' report**|2 - 6| |**Trustees' responsibilities statement**|7| |**Independent examiner's report**|8 - 9| |**Consolidated statement of financial activities**|10| |**Consolidated balance sheet**|11 - 12| |**Company balance sheet**|13 - 14| |**Notes to the financial statements**|15 - 36| ## **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Reference and administrative details of the Company, its Trustees and advisers for the 2 month period ended 31 December 2020** ## **Trustees** Mr M R Elms, Chairman Mrs R J Steeden Mrs C J Breuning Mr T W Russoff Mr T H Rayner Mr S R Allaby Mrs A C Allchorn (appointed 17 June 2021) ## **Company registered number** 00588731 ## **Charity registered number** 221462 ## **Registered office** 1 Easting Close, Worthing, England, BN14 8HQ ## **Chief executive officer** Mr A J Hare ## **Key management personnel** Mr A J Hare, CEO Mr P T Arkinstall, Chief Partnership Officer Mr S J Smith, Chief Creative Officer ## **Accountants** Kreston Reeves LLP, 9 Donnington Park, 85 Birdham Road, Chichester, West Sussex, PO20 7AJ ## **Bankers** Barclays Corporate, PO Box 165, Crawley, West Sussex, RH10 1YX Unity Trust Bank plc, Nine Brindleyplace, Birmingham, B1 2HB ## **Solicitors** Bate & Albon Solicitors, 4-8 Broadwater Street East, Worthing, West Sussex, BN14 9AA (Property) Edward Connor Solicitors, 39 The Point, Market Harborough, Leicestershire, LE16 7QU (General) Page 1 ## **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Trustees' report** ## **for the 2 month period ended 31 December 2020** The Trustees present their annual report together with the unaudited financial statements of the Company for the 2 month period 1 November 2020 to 31 December 2020. The Annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. During the period, the Group changed its period end from 31 October to 31 December. The current period results represent 2 months. Therefore the comparatives are not entirely comparable. ## **Structure, Governance and Management** ## **Governing Document** Christian Publicity Ltd was established in 1957 and changed its name to become Christian Publishing & Outreach Ltd (CPO) in 2014. CPO is a charitable company limited by guarantee and governed by a Memorandum & Articles of Association. It is a registered charity with the Charity Commission for England & Wales. ## **Organisational structure** CPO has been providing inspiring communications to churches and the wider Christian community in the UK since 1957. The main activities are:- - An online Shop selling cards, posters, banners, notice boards and many ranges of other products - A creative and design studio developing products for the Shop and a comprehensive creative service for - Christian Charities and Church organisations - A Print and Fulfilment service for Church organisations and Charities - A Publishing and Distribution activity for magazines CPO currently carries out all primary purpose activities of the charity. All non-primary purpose trading is conducted through a subsidiary company, Heritage Studios Ltd. Separate accounts are available for the subsidiary company. ## **Objectives and aims** CPO has always existed to “Advance the Gospel of our Lord Jesus Christ - by display, publicity, and advertising, - by assisting churches and other organisations - for the advancement of the Christian faith - with their display, publicity, and advertising, and - by such other means being charitable as may be determined by the charity.” As an organisation whose focus is communication, CPO inevitably seeks to improve the relevance of the language it uses. A more modern rendering of that original wording would be:- _“Helping Christians Help People Encounter Jesus_ " Page 2 ## **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Trustees' report (continued) for the 2 month period ended 31 December 2020** Our mission is to create inspiring communications, using all media types, which convey the gospel in an attractive and compelling way to everyone, irrespective of their familiarity with Christianity. In fulfilling our objects and mission we seek to: - make a national impact by providing Churches with inspirational resources in order to revitalise its - communications and take the good news of Jesus Christ out into the world - help Christian organisations creatively communicate their services to supporters and the wider Church - network - be the UK’s leading developer and provider of innovative Christian resources and media. - be a dynamic, flexible, proactive, client centric, organisation committed to excellence and productive - partnerships. ## **Governance** The charity is administered by a trustee board which is appointed in accordance with the Articles of Association. The trustees are responsible for the proper handling of the affairs of the charity. The trustees are responsible to the charity commissioners for the maintenance of the charitable objects of the charity. All trustees are volunteers who give their time freely. No-one was paid to contribute as a trustee during the year. ## **Recruitment and appointment of new Trustees** There were six trustees during the period and one new trustee has been appointed since then. The board of trustees recognises the ongoing need to continue to seek out people with the requisite skills and experience to add to the governing body of the charity and we were pleased to welcome a new trustee with a strong governance background and good connections across the UK Christian world. ## **Induction and training of new trustees** All new trustees seek to familiarise themselves with the work of the charity and its subsidiary company. This includes meeting both the directors and key employees and understanding the processes and systems that are in place. ## **Chief Executive and Senior Management Team** A Chief Executive appointed by the board of trustees leads a senior management team that is appointed to manage the charity on behalf of the trustees. The Chief Executive reports to the trustees on a regular basis and formally at trustee board meetings. Pay and remuneration of the senior management team is set with reference to the prevailing market rates for similar third sector roles, responsibilities and levels of experience and is reviewed and approved by the trustees. ## **Trustee meetings** The trustee board meets regularly whether physically or virtually. The Chief Executive attends each meeting with members of the Management Team invited as required by the Trustees. Group policies are reviewed annually, in four batches during the year. Trustees use operational knowledge provided by the staff team, to inform and make strategic and policy decisions. Trustees are required to declare conflicts of interest at any meeting and withdraw from decisions where a conflict of interest arises. ## **Overview (including COVID-19 Impact)** The last Annual Report noted that a staff consultation process had been necessary as a result of the Covid pandemic and had concluded with the Trustees launching a restructured CPO, totally committed to maintaining the original vision, on 1 August 2020. Page 3 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Trustees' report (continued) for the 2 month period ended 31 December 2020** ## **Strategy** Regular Strategy reviews by the trustees and Management Team have ensured that decisions about how to respond to the immediate pressures caused by the Covid pandemic, on top of the financial pressure endemic in the previous business model, have been based on a solid strategic foundation. The external professional review was also invaluable in affirming the Board’s plans. ## STRUCTURE A key aspect to the restructured CPO was the emphasis on protecting and nurturing CPO’s 3 key assets. This is demonstrated by the three ‘Chief Officer’ positions in the new structure:- _**Chief Creative Officer**_ - To expand our Creative assets (physical and digital) This was a very deliberate switch from ‘Design’ to ‘Creative’ to reflect that communications today are much broader than graphic design and cover the whole range of ‘creative’ skills (e.g., video, song, music, spoken word, etc). CPO now works with a wide range of external consultants and experts. _**Chief Partnership Officer**_ - Our ‘one-stop’ service (our default answer is ‘yes, we can sort that!) CPO has a reputation as a ‘one-stop’ shop after decades of rising to communications challenges from churches and charities. That applies equally to digital or print situations presented to us; and our Christmas 2020 campaign, “Share the Light” connected the two through the use of QR codes. _**Chief Marketing Officer**_ - Our database assets (20,000 churches and over a hundred charities) An industry expert has commented on the strong loyalty of the churches on the CPO database who respond strongly to the regular emails sent to them. Very often, those emails include references to the many charities with whom we work as partners to ‘advance the gospel’. ## PROJECTS The Management Team is focussed on developing three key projects for the Board to deliver the aims of the restructured organisation:-. ## _**Creative Thought Leadership**_ We use our creative gifts and technological know-how to help Charities and churches remain true to their values while bringing their message and vision to life across today’s complex communications landscape. ## _**Digital Transformation**_ When the first lockdown took effect in March and April 2020, CPO mailed out a handbook to help churches to continue to provide their services in the new virtual church landscape. As that morphed into ‘hybrid’ church, CPO continued to support them with digital and social media as well as providing guidance on language and tone: both critical for communicating well in the new digital world ‘outside the church building’. ## _**Kingdom Collaboration**_ CPO believes that collaboration and co-operation are essential as it seeks to see God’s kingdom grow and works with other organisations to supply services to churches as well as signposting partners with greater resources. ## CULTURE ## _**Agile**_ The restructuring resulted in a 1/3rd reduction in staffing and a ‘flat’ ‘two-step’ operational structure. The result is a more agile management of the business and increased responsibility and accountability by all employees. Decision making and client service are much improved as a result. ## _**Business Focused**_ The restructuring also improved the focus on ensuring that every activity of the organisation is subject to financial/business scrutiny and to generating future, financially prudent, revenue streams. Page 4 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Trustees' report (continued) for the 2 month period ended 31 December 2020** ## _**Client Centric**_ The many notes of thanks and appreciation from churches are testimony to the attention given by our staff to understanding and meeting the many different needs of church customers and the repeat business from our charity clients supports the similar notes we continuously receive from them. ## **Staff** The trustees wish to place on record their thanks for and appreciation of the hard work and dedication of all the staff who have served with CPO during significant challenges. Their care and attention for CPO has been mirrored in the way they service our church and charity clients. The ongoing success of the organisation is very largely attributable to them ## **Related parties** As noted above all primary purpose trading is held directly within Christian Publishing & Outreach (the charity) and there is one active wholly owned subsidiary company, Heritage Studios Ltd, for non-primary purpose trading. Heritage Studios publishes Funeral Service Journal. ## **Risk Management** The charity has a range of risk management policies and procedures, and reviews these regularly to ensure they remain current and appropriate. Relevant action is taken where necessary. Every area of work has a detailed list of all the activities, the risks associated with that area and the action taken to mitigate risk. These include fire assessment, business continuity, major illness, working with VDUs, COSHH, PPE and manual handling. Health and Safety is reviewed regularly at both senior management and trustee board meetings. An extensive external health & safety audit was undertaken at CPO’s new premises in the summer of 2018, and this has been continued. ## **Public Benefit** The Trustees have considered the guidelines issued by the Charity Commission with regard to public benefit and how the charity complies with these requirements. They are confident that they have complied with the duty in section 17(5) of the Charities Act 2011 with regard to public benefit. The charity makes available to Christian organisations its range of materials and services without the exclusion of any denomination within the Christian religion. ## **ACHIEVEMENT AND PERFORMANCE** The activities of the charity are wide-ranging across a number of areas. During the year to date we have been able to demonstrate significant progress in fulfilling the mission of CPO. ## **Financial Review** ## **Summary** The financial resources available to CPO during the year have enabled us to continue our mission and support churches and charities in their work to advance the gospel. We are grateful to God for his continued provision through this uniquely difficult period and bringing us to a new position from which we can continue to do that. CPO’s financial resources improved through the 2 months covered by this report - from £123,275 to £187,595. The changes implemented in the restructuring were designed to ensure that CPO was operating on a ‘breakeven’ basis in a non-pandemic world. Performance since then has been encouraging and early indications are that this will be achieved. Page 5 Chrlstl•n Publlshlng & Outrga¢h Llmlled {A company limlted by guarant•g) Trusto9s' report (￿ntin￿Od) for the 2 month p•rlod onded 31 Decem￿ 2020 Golng concérn The Trust88 Board r8coanl￿I Ihat the prevKWS strwknre of ts ￿ganisa￿n was d8￿etIng resources and took aclK)n to address this and effect a transith)n to a new and more sustainaue business model. These accounts only recognise months of trading under the new business nK#Jel, but the Trustee Board are ￿couraged frorn the subsequent monitorÈng of resulls that the g(xrwJ concern basis remains appropriate for the accounts as detailed in the Acwjnting Pc4ic4e Reserves pollcy Totsl lunds at the balance sheet date were £187.595131 October 2020: £123.275). Of these. £nil (31 October 2020.. £nll} are held as restricted funds and £170.871 {31 October 2020.. £181.705) are hekj as tangible fixed assets. This leaves free reserves of £16.724 (31 Oclob8r 2020. 8 def#>t on free res8rv8s of £58.430). The Trusiees keep the level of the th8rity reseNes under rewew. They have reduc*d significanuy since the c8sh generated from the Sa￿ of the freehI￿d property in the summer of 2018 as the Trustees have drawn on them to finance Ihroijgh the financia challenges of the years wecedir¥J the restrucbjring implemented at the teginning of August 2020. Plans forfuture wlods The Trustees and Operational Management are committed to the Strategy defined at*Jve and are confident that the ￿tnjClUred organisaknon can continue lo provhje an ever growing and valued service to churches and charities in ftjrtherance of its mission. Inforniatlon on fvndralslng pract1￿$ The charrty receives donations thr(wh its websile. fr(￿ custom￿$ opting to I￿nd up the value of tsir orders. and occasionally from major donors and trusts. Due to the limited nature of th8 fUndrai￿r￿j acbth wrenty urKlert8ken. dogs not fomialy monitor ccKnpliance with the Code of Fundraising Prac￿e. The chafity does not consider that any of rts fundraising activrties consts.tute unreasonable intrusK)n on a person's privacy. unreas(Thbly pe￿￿￿ent approaches. or undue pressure to give. Requests are only maje to those are already customers and supporters of the charity and people can unsubscribe at any time. Th8 (tharity (k)es not wlth any ccffimerual participators or professional ndraisers. Approved by order ofthe m8mters ￿ thè t￿ard of Trustees signed on thair bahalf by: r-￿,,,a,1 pi4, Mr M Elms. Chairman Z3-of -21 Christian Publbhlng & Outreath Ltmlted (A company Ilmltsd by guarn*) Statement of T￿￿. r¢sponslbllllles for tho 2 month per5¢d •ndod 31 Docomb•r 2020 The Twstees Iwho are also tha dir8(AcKs of the Company for the purposes of company W) are responsible for preparing the Trustees, report ￿ the financial StateM￿ts in ac¢C￿￿nCe ￿￿th applicable law and United Kinwlom Ac￿Unting Standards (United Generdly Accepted AcLxJuntbng Practic*). Company law requires the Trustees to prepare finarKaal statements for each financial 2 month peri¢)d. Under company law. the Trustees must not approve the finan(xal statements unl8SS they are satisfied that they give true and falr ￿eW of the state of affairs of the Gr￿P and the Company and of thelr incoming rescmjrces and application of resour￿, induding their income aTrJ 8xpw¥J1￿re. f¢x that In preparing th￿0 financial statements. the Trustees are required to: select suita￿8 accountiThJ FdKÉes and then atvty them CLThiStenty: obsefve the meth¢)ts and princiF4es of the Charilies SORP (FRS 102): make judgments and acc￿lnting estimates that are reasonable and prudent state ￿ether aprAicable UK Accwnting Standarts {FRS 1021 have been followed. subject to any material depathres disclosed and explained in the fillancial statoments; p￿pare the finanoal ststements the going (x)rK*m basis u￿e$S it is inapproprth to pyesume that the Grr)up w￿1 L￿tinUe in busine5S. The Trustees are responsible ￿ keeping adequate acc￿n￿r￿j recAyds that are sufficient to show and explain the Group and the Companvs transactions and discb)se wth reasonable accuracy at any tim8 thè financial positi.on of the Group and the Company and enatle them to 8nsure that the finanaal statements comply with the Companies Act 20LK. They a￿ also responsib￿ for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the Weven￿n and detection of fraud and other irregularibes. Approved by order of the members of ts t*Jard ofTrustees aTrJ ort its behalf by: IAr M elms, Chairlnan Date: L3_0l-U P4e7 **Christian Publishing & Outreach Limited** **(A company limited by guarantee)** ## **Independent examiner's report** **for the 2 month period ended 31 December 2020** ## **Independent examiner's report to the Trustees of Christian Publishing & Outreach Limited ('the Group')** I report to the charity Trustees on my examination of the consolidated accounts of the Group comprising the Christian Publishing & Outreach Limited ('the parent Company') and its subsidiary undertakings for the 2 month period ended 31 December 2020. ## **Responsibilities and basis of report** As the Trustees of the parent Company (and its directors for the purposes of company law) you are responsible for the preparation of the consolidated accounts of the Group in accordance with the requirements of the Companies Act 2006 ('the 2006 Act') and you have chosen to prepare consolidated accounts for the Group. You are satisfied that the accounts of both parent Company and the Group are not required by either company or charity law to be audited and have chosen instead to have an independent examination. Having satisfied myself that the consolidated accounts 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 the Group's accounts carried out under section 152 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 152(5)(b) of the 2011 Act. An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no option as to whether the consolidated accounts present a 'true and fair' view and my report is limited to those specific matters set out in the independent examiner's statement. ## **Independent examiner's statement** Since the Trustees have opted to prepare consolidated accounts for the Group your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of England and Wales, which is one of the listed bodies. 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: 1. accounting records were not kept in respect of the parent Company and its subsidiaries as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Page 8 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Independent examiner's report (continued) for the 2 month period ended 31 December 2020** This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the parent Company and the Company's Trustees as a body, for my work or for this report. Signed: Dated: 24 September 2021 Simon Webber BA (Hons), DCha, FCA ## **Kreston Reeves LLP** Chartered Accountants Chichester Page 9 ## **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Consolidated Statement of financial activities (incorporating income and expenditure account) for the 2 month period ended 31 December 2020** |**Note**
**Income from:**
Donations and legacies
2
Charitable activities
3
Investments
4
**Total income**
**Expenditure on:**
Raising funds
5
Charitable activities
6
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2 months**
**ended**
**31 December**
**2020**
**£**
**1,878**
**310,784**
**-**
**312,662**
**6,403**
**241,939**
**248,342**
**64,320**
**123,275**
**64,320**
**187,595**|**Total**
**funds**
**2 months**
**ended**
**31 December**
**2020**
**£**
**1,878**
**310,784**
**-**
**312,662**
**6,403**
**241,939**
**248,342**
**64,320**
**123,275**
**64,320**
**187,595**|Total
funds
18 months
ended
31 October
2020
£
119,336
2,553,276
333
2,672,945
11,365
2,987,718
2,999,083
(326,138)
449,413
(326,138)
123,275| |---|---|---|---| The Consolidated statement of financial activities includes all gains and losses recognised in the 2 month period. The notes on pages 15 to 36 form part of these financial statements. Page 10 **Christian Publishing & Outreach Limited (A company limited by guarantee) Registered number: 00588731** ## **Consolidated balance sheet as at 31 December 2020** |**Note**
**Fixed assets**
Tangible assets
12
**Current assets**
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
17
**Net assets**
**Total net assets**
**Charity funds**
Restricted funds
19
Unrestricted funds
19
**Total funds**|**30,653**
**105,398**
**243,357**
**379,408**
**(274,922)**|**31**
**December**
**2020**
**£**
**170,871**
**170,871**
**104,486**
**275,357**
**(87,762)**
**187,595**
**187,595**
**-**
**187,595**
**187,595**|30,307
171,536
169,497
371,340
(335,435)|31 October
2020
£
181,704
181,704
35,905
217,609
(94,334)
123,275
123,275
-
123,275
123,275| |---|---|---|---|---| Page 11 Chrlstlan Publl$hlng & outr•￿ Umlted (A Company Ilmlted by guarant￿) Reglstered number: 00588731 Consolldated balanc• sh••t {contlnued) as at 31 December 2020 The Company was entitled to exempknn from audlt under 4TT of the C(ynpanles Act 2006. The membors have rnt requtred the company to obtain an audit for the 2 month perk)d in qu8slknn in accordance th section 476 of Companies Act 2006. The Trustees ackn￿￿edge their reswnsibilik5 for 0)m￿1￿j *ilh the requirements of thè Act *lth re5PgCt to accounting records and prepara1K￿ of financial statements. The fir￿ncIal ststements have been wepared in accordm wlth the rKovi5Th5 aptAicaiAe to entities subject to the small ct)mpanles regime. The financial slatements were apwoved arKI aulhori￿ for issue by the Trustees and SIg￿d on their behalf by.. ,,L) qr M Elms, Chalrman Date.. 22-ofj -z/ The rtotes on pages 15 to 36 fomi t*rt of these financaal statements. P￿12 ## **Christian Publishing & Outreach Limited (A company limited by guarantee) Registered number: 00588731** ## **Company balance sheet as at 31 December 2020** |**Note**
**Fixed assets**
Tangible assets
12
Investments
13
**Current assets**
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
**Net current assets / liabilites**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
17
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
19
Unrestricted funds
19
**Total funds**|**30,653**
**63,158**
**202,427**
**296,238**
**(254,247)**|**31**
**December**
**2020**
**£**
**170,871**
**1**
**170,872**
**41,991**
**212,863**
**(87,762)**
**125,101**
**125,101**
**-**
**125,101**
**125,101**|30,307
132,688
132,866
295,861
(318,352)|31 October
2020
£
181,704
1
181,705
(22,491)
159,214
(94,334)
64,880
64,880
-
64,880
64,880| |---|---|---|---|---| Page 13 Chrlstlan Publlshlng & Outreach Llmlled (A company limited by guarantee) Reglstered number: 00588731 C¢)mpany balance sheet {conlinued) as at 31 December 2020 The Company was entiljed to exemOKK) from ajdlt under seckn 477 of the Companies Act 2006. The members have not requlred the (x)mpanyto obtsin ￿ al￿11 for the 2 rM¥th tn question in aG¢cffdance th section 476 of Companies Ad 2006. The Trustees ￿k￿lIA8dge th￿r rwinsthlities for ¢￿7[1￿r￿j with Ihe requirements of the AGI wlh r8SFeCt to accounting records and preparation of finanriai stat9￿nts. The finanryal statements hav8 been Fwared in accordance ¥￿th the prov￿￿)nS appllcable to entth5 subject to the small companies regiff*. The financial statements were approved and aUthNiS￿ for issue by the TNstees and signed on their behalf by: ,I.IA ir M Elms. Chalnnan Date= 27-&4-2 J The notes on pages 15 to 36 f(Km part of these firtanraal stsiements. P￿14 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **1. Accounting policies** ## **1.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Christian Publishing & Outreach Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all financial periods presented unless otherwise stated. ## **1.2 Company status** The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. ## **1.3 Going concern** As explained in the Trustees' Report, a full restructuring of the charity took place in August 2020. The changes implemented ensure that the charity can operate on at least a 'break-even' basis in a nonpandemic world with a new and sustainable business model from which to look for growth. Performance since then has been encouraging and early indications are that, based on sales forecasts and expected cost savings, the charity will have sufficient income to cover its costs in 2021. Furthermore, when including the subsidiary results, a small surplus is forecast for the group. The sales element of the forecasts is based on several assumptions and include an allowance for growth, but the customer base is now more diverse and the organisation more reactive to changes in customer requirements. The charity's free reserves are no longer in deficit. It received a bounce back loan in the prior period and this funding is repayable over a five-year period meaning working capital is secure in the short to medium term. Accordingly the Trustees remain confident that the operation continues to be a going concern for a period of at least twelve months from the date of approval of these accounts and beyond. ## **1.4 Income** All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Government grants are recognised in the Consolidated statement of financial activities as the related expenditure is incurred. Page 15 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **1. Accounting policies (continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. ## **1.6 Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. ## **1.7 Basis of consolidation** The financial statements consolidate the accounts of Christian Publishing & Outreach Limited and all of its subsidiary undertakings ('subsidiaires'). The charitable company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own income and expenditure account. The income and expenditure account for the 2 month period/18 month period, for the charitable company, was net income of £60,221 (2020 - net expenditure of £336,995). ## **1.8 Goodwill** The goodwill was originally purchased in 2011 for £238,000 and has been amortised over a 5 year period. ## **1.9 Tangible fixed assets and depreciation** Tangible fixed assets purchased or donated with a cost of value exceeding £500 are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Page 16 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **1. Accounting policies (continued)** ## **1.9 Tangible fixed assets and depreciation (continued)** Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Land is not depreciated. Depreciation is provided on the following bases: - Leasehold improvements 10% straight line - Plant and machinery 20% straight line - Fixtures and fittings 15% straight line - Computer equipment 33% straight line ## **1.10 Investments** Investments in subsidiaries are valued at cost less provision for impairment. ## **1.11 Stocks** Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. ## **1.12 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **1.13 Cash at bank and in hand** Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **1.14 Liabilities and provisions** Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost. ## **1.15 Financial instruments** The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Page 17 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **1. Accounting policies (continued)** ## **1.16 Finance leases and hire purchase** Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. ## **1.17 Operating leases** Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term. ## **1.18 Pensions** The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the 2 month period. ## **1.19 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. ## **1.20 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. ## **1.21 Employee benefits** When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. ## **1.22 Redundancy and termination payments** It is the charitable company's policy to recognise termination benefits when they become committed, by legislation, by contractual or other agreements with employees or their representatives or by a constructive obligation based on business practice, custom or a desire to act equitably, to make payments (or provide other benefits) to employees when it terminates their employment. Termination payments do not provide the company with future economic benefits therefore it is their policy to recognise them as an expense in profit or loss immediately. Page 18 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **2. Income from donations and legacies** |**Unrestricted**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
Donations
1,878
Government grants
-
1,878
Total 18 months ended 31 October 2020
119,336|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**1,878**
**-**
**1,878**
119,336|Total
funds
18 months
ended
31 October
2020
£
21,253
98,083| |---|---|---| |||119,336| |||| Included within government grants are £nil (18 months ended 31 October 2020 - £98,083) relating to the Coronavirus Job Retention Scheme. ## **3. Income from charitable activities** |**Unrestricted**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
Printing and publishing
310,784
Total 18 months ended 31 October 2020
2,553,276|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**310,784**
2,553,276|Total
funds
18 months
ended
31 October
2020
£
2,553,276| |---|---|---| |||| Page 19 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **4. Investment income** |**Unrestricted**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
Investment income - local cash
-
Total 18 months ended 31 October 2020
333|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**-**
333|Total
funds
18 months
ended
31 October
2020
£
333| |---|---|---| |||| ## **5. Expenditure on raising funds** ## **Costs of raising voluntary income** |**Unrestricted**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
Marketing
6,403
Total 18 months ended 31 October 2020
11,365|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**6,403**
11,365|Total
funds
18 months
ended
31 October
2020
£
11,365| |---|---|---| |||| Page 20 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements** **for the 2 month period ended 31 December 2020** ## **6. Analysis of expenditure on charitable activities** ## **Summary by fund type** |Printing and publishing
Total 18 months ended 31 October 2020|**Restricted**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**Unrestricted**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**£**
-
241,939
2,803
2,984,915|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**241,939**
2,987,718|Total
funds
18 months
ended
31 October
2020
£
2,987,718| |---|---|---|---| ||||| ## **Summary by expenditure type** |Printing and publishing
Total 18 months ended 31
October 2020|**Staff costs**
**2 months**
**ended**
**31**
**December**
**2020**
**Depreciation**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**£**
90,280
10,832
1,234,538
102,104|**Other costs**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
140,827
1,651,076|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**241,939**
2,987,718|Total
funds
18 months
ended
31 October
2020
£
2,987,718| |---|---|---|---|---| |||||| Page 21 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **7. Analysis of expenditure by activities** |Printing and publishing
Total 18 months ended 31 October 2020|**Activities**
**undertaken**
**directly**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
164,540
2,229,543|**Support**
**costs**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
77,399
758,175|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**241,939**
2,987,718|Total
funds
18 months
ended
31 October
2020
£
2,987,718| |---|---|---|---|---| |||||| ## **Analysis of direct costs** |Staff costs
Publishing of evangelistic literature
Charitable donations
Total 18 months ended 31 October 2020|**Printing and**
**publishing**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
79,176
85,364
-
164,540
2,229,543|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**79,176**
**85,364**
**-**
**164,540**
2,229,543|Total
funds
18 months
ended
31 October
2020
£
967,102
1,260,476
1,965| |---|---|---|---| ||||2,229,543| ||||| Included within publishing of evangelistic literature was £nil (18 months ended 31 October 2020: £838) expenditure from restricted funds, and included within charitable donations was £nil (18 months ended 31 October 2020: £1,965) expenditure from restricted funds. All other direct costs were from unrestricted funds in the 2 month period ended 31 December 2020 and the 18 month period ended 31 October 2020. Page 22 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **7. Analysis of expenditure by activities (continued)** ## **Analysis of support costs** |Staff costs
Depreciation
Office costs
Repairs, renewals and equipment hire
Finance costs
Legal and professional
Marketing
Governance costs
Total 18 months ended 31 October 2020|**Printing and**
**publishing**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
11,104
10,832
31,781
1,255
10,245
8,830
50
3,302
77,399
758,175|**Total**
**funds**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**11,104**
**10,832**
**31,781**
**1,255**
**10,245**
**8,830**
**50**
**3,302**
**77,399**
758,175|Total
funds
18 months
ended
31 October
2020
£
267,436
102,104
269,284
(940)
47,218
55,666
50
17,357
758,175| |---|---|---|---| ## **8. Independent examiner's remuneration** The independent examiner's remuneration amounts to an independent examiner fee of £2,260 _(_ 18 month _-_ period ended 31 October 2020 audit fee of £9,500 _)_ , and other accountancy services of £1,000 (18 month period ended 31 October 2020 - £7,337). Page 23 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **9. Staff costs** |Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|**Group**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**79,447**
**6,533**
**4,300**
**90,280**|Group
18 months
ended
31 October
2020
£
1,098,237
78,059
58,242
1,234,538|**Company**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**72,298**
**6,533**
**4,300**
**83,131**|Company
18 months
ended
31 October
2020
£
1,037,473
78,059
58,242| |---|---|---|---|---| |||||1,173,774| Total redundancy and termination payments included in wages and salaries amount to £nil (18 months ended 31 October 2020: £54,555) The average number of persons employed by the Company during the 18 month period was as follows: |Charitable staff
Administration|**Group**
**2 months**
**ended**
**31**
**December**
**2020**
**No.**
**18**
**3**
**21**|Group
18 months
ended
31 October
2020
No.
28
4| |---|---|---| |||| |||32| The average headcount expressed as full-time equivalents was: |Charitable staff
Administration|**Group**
**2 months**
**ended**
**31**
**December**
**2020**
**No.**
**15**
**3**
**18**|Group
18 months
ended
31 October
2020
No.
22
4| |---|---|---| |||| |||26| Page 24 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **9. Staff costs (continued)** The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: |In the band £60,001 - £70,000
In the band £80,001 - £90,000
**Total key management personnel remuneration in the period:**
Salaries and wages, including benefits in kind
Social security costs
Pension costs|**Group**
**2 months**
**ended**
**31**
**December**
**2020**
**No.**
**-**
**-**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**17,167**
**1,763**
**2,560**
**21,490**|Group
18 months
ended
31 October
2020
No.
1
1
18 months
ended
31 October
2020
£
226,758
23,092
27,427| |---|---|---| |||277,277| ## **10. Trustees' remuneration and expenses** During the 2 month period, no Trustees received any remuneration or other benefits (18 month period ended 31 October 2020 - £nil). During the 2 month period ended 31 December 2020, no Trustee expenses have been incurred (18 month period ended 31 October 2020 - 3 Trustees reimbursed for expenses amounting to £72). Page 25 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** |**11.**
**Intangible assets**
**Group**
**Cost**
At 1 November 2020
At 31 December 2020
**Amortisation**
At 1 November 2020
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 October 2020|**Goodwill**
**£**
**238,000**| |---|---| ||**238,000**| ||**238,000**| ||**238,000**| ||**-**| ||-| Intangible fixed assets represent the total consideration payable regarding the goodwill acquired by Heritage Studios Limited in respect of its purchase of the title to the Funeral Services Journal. Page 26 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **12. Tangible fixed assets** ## **Group and Company** |**Cost or valuation**
At 1 November 2020
Disposals
At 31 December 2020
**Depreciation**
At 1 November 2020
Charge for the 2 month
period
On disposals
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 October 2020|**Long-term**
**leasehold**
**property**
**£**
**76,406**
**-**
**76,406**
**16,112**
**1,283**
**-**
**17,395**
**59,011**
60,294|**Plant and**
**machinery**
**£**
**430,229**
**-**
**430,229**
**331,488**
**7,174**
**-**
**338,662**
**91,567**
98,741|**Fixtures and**
**fittings**
**£**
**5,214**
**-**
**5,214**
**4,100**
**97**
**-**
**4,197**
**1,017**
1,114|**Computer**
**equipment**
**£**
**47,691**
**(3,630)**
**44,061**
**26,136**
**2,279**
**(3,630)**
**24,785**
**19,276**
21,555|**Total**
**£**
**559,540**
**(3,630)**| |---|---|---|---|---|---| ||||||**555,910**| ||||||**377,836**
**10,833**
**(3,630)**| ||||||**385,039**| ||||||**170,871**| ||||||181,704| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows: |**Group and company**
Plant and machinery|**31**
**December**
**2020**
**£**
**44,613**
**44,613**|31 October
2020
£
89,721
89,721| |---|---|---| The depreciation charge for the 2 month period consists of £4,389 (18 month period ended 31 October 2020: £42,386) depreciation on tangible fixed assets owned by the charitable group and £6,444 (18 month period ended 31 October 2020: £57,978) depreciation on tangible fixed assets held under finance leases. Page 27 **Christian Publishing & Outreach Limited (A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **13. Fixed asset investments** |**Company**
**Cost or valuation**
At 1 November 2020
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 October 2020|**Investments**
**in**
**subsidiary**
**companies**
**£**
**1**| |---|---| ||**1**| ||**1**| ||1| ## **Principal subsidiaries** The following were subsidiary undertakings of the Company: |**Names**|**Company**|**Principal activity**|**Class of**|**Holding**| |---|---|---|---|---| ||**number**||**shares**|| |Heritage Studios Limited|05298514|Design, printing,|Ordinary|100%| |||publishing and||| |||distribution of the||| |||Funeral Services||| |||Journal||| ## **Included in consolidation** Yes The financial results of the subsidiaries for the period were: Page 28 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **13. Fixed asset investments (continued)** ||**Names**|**Income**|**Expenditure**|**Expenditure**|**Profit/(Loss)**|**Profit/(Loss)**|**Net assets**| |---|---|---|---|---|---|---|---| |||**£**||**£**||**/ Surplus/**|**£**| |||||||**(Deficit) for**|| |||||||**the period**|| |||||||**£**|| ||Heritage Studios Limited|**34,895**||**30,797**||**4,098**|**62,494**| |**14.**|**Stocks**||||||| |||**Group**||||**Company**|| ||||**31**|Group||**31**|Company| |||**December**||31 October||**December**|31 October| ||||**2020**|2020||**2020**|2020| ||||**£**||£|**£**|£| ||Finished goods and goods for resale|**30,653**||30,307||**30,653**|30,307| |**15.**
**Debtors**
Trade debtors
Other debtors
Prepayments and accrued income|**Group**
**31**
**December**
**2020**
**£**
**70,407**
**20,413**
**14,578**
**105,398**|Group
31 October
2020
£
135,820
23,376
12,340
171,536|**Company**
**31**
**December**
**2020**
**£**
**29,553**
**20,413**
**13,192**
**63,158**|Company
31 October
2020
£
97,712
23,376
11,600| |---|---|---|---|---| |||||| |||||132,688| ## **16. Creditors: Amounts falling due within one year** ||**Group**||**Company**|| |---|---|---|---|---| ||**31**|Group|**31**|Company| ||**December**|31 October|**December**|31 October| ||**2020**|2020|**2020**|2020| ||**£**|£|**£**|£| |Bank loans|**10,000**|10,000|**10,000**|10,000| |Trade creditors|**58,152**|111,691|**55,953**|110,040| |Amounts owed to group undertakings|**-**|-|**32,094**|39,176| |Other taxation and social security|**27,067**|19,983|**24,009**|11,512| |Obligations under finance lease and hire||||| |purchase contracts|**25,597**|25,143|**25,597**|25,143| |Other creditors|**2,000**|811|**1,744**|650| |Accruals and deferred income|**152,106**|167,807|**104,850**|121,831| Page 29 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **16. Creditors: Amounts falling due within one year (continued)** |Deferred income at 1 November 2020
Resources deferred during the 18 month
period
Amounts released from previous periods
**Deferred income at 31 December 2020**|**Group**
**31**
**December**
**2020**
**£**
**274,922**
**Group**
**31**
**December**
**2020**
**£**
**50,020**
**238**
**-**
**50,258**|Group
31 October
2020
£
335,435
Group
31 October
2020
£
113,497
43,738
(107,215)
50,020|**Company**
**31**
**December**
**2020**
**£**
**254,247**
**Company**
**31**
**December**
**2020**
**£**
**23,880**
**-**
**-**
**23,880**|Company
31 October
2020
£| |---|---|---|---|---| |||||318,352| |||||Company
31 October
2020
£
89,496
17,598
(83,214)| |||||23,880| Deferred income represents subscription and performance related grant income received in advance which does not meet the criteria for recognition as income in the period. ## **17. Creditors: Amounts falling due after more than one year** |Bank loans
Net obligations under finance lease and hire
purchase contracts|**Group**
**31**
**December**
**2020**
**£**
**40,000**
**47,762**
**87,762**|Group
31 October
2020
£
40,000
54,334
94,334|**Company**
**31**
**December**
**2020**
**£**
**40,000**
**47,762**
**87,762**|Company
31 October
2020
£
40,000
54,334| |---|---|---|---|---| |||||94,334| Included within the above are amounts falling due as follows: ||**Group**||**Company**|| |---|---|---|---|---| ||**31**|Group|**31**|Company| ||**December**|31 October|**December**|31 October| ||**2020**|2020|**2020**|2020| ||**£**|£|**£**|£| |**Between one and two years**||||| |Bank loans|**10,000**|10,000|**10,000**|10,000| ## **Between two and five years** Page 30 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **17. Creditors: Amounts falling due after more than one year (continued)** |Bank loans
**Over five years**|**Group**
**31**
**December**
**2020**
**£**
**30,000**|Group
31 October
2020
£
30,000|**Company**
**31**
**December**
**2020**
**£**
**30,000**|Company
31 October
2020
£
30,000| |---|---|---|---|---| |||||| Bank loans are unsecured. ## **18. Financial instruments** |**Financial assets**
Financial assets measured at amortised cost
**Financial liabilities**
Financial liabilities measured at amortised
cost less impairment|**Group**
**31**
**December**
**2020**
**£**
**334,177**
**Group**
**31**
**December**
**2020**
**£**
**235,359**|Group
31 October
2020
£
328,693
Group
31 October
2020
£
309,766|**Company**
**31**
**December**
**2020**
**£**
**252,393**
**Company**
**31**
**December**
**2020**
**£**
**212,026**|Company
31 October
2020
£
253,954| |---|---|---|---|---| |||||Company
31 October
2020
£
288,118| Financial assets measured at amortised cost comprise trade debtors, other debtors and cash and cash equivalents. Financial liabilities measured at amortised cost less impairment comprise bank loans, trade creditors, obligations under finance lease and hire purchase contracts, other creditors and accruals. Page 31 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements** **for the 2 month period ended 31 December 2020** ## **19. Statement of funds** ## **Statement of funds - current 2 month period** |**Unrestricted funds**
Reserves
**Statement of funds - prior 18 month period**
**Unrestricted funds**
Unrestricted funds
**Restricted funds**
Restricted Funds
**Total of funds**|**Balance at 1**
**November**
**2020**
**£**
**123,275**
Balance at
1 May 2019
£
446,610
2,803
449,413|**Income**
**£**
**312,662**
Income
£
2,672,945
-
-|**Expenditure**
**£**
**(248,342)**
Expenditure
£
(2,996,280)
(2,803)
(2,999,083)|**Balance at**
**31**
**December**
**2020**
**£**
**187,595**| |---|---|---|---|---| |||||Balance at
31 October
2020
£
123,275| |||||-| |||||123,275| The restricted fund related to the Project Print fund. This money was available to support mission organisations by subsidising their printing costs. Page 32 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **20. Summary of funds** ## **Summary of funds - current 2 month period** |General funds
**Summary of funds - prior 18 month period**
General funds
Restricted funds|**Balance at 1**
**November**
**2020**
**£**
**123,275**
Balance at
1 May 2019
£
446,610
2,803
449,413|**Income**
**£**
**312,662**
Income
£
2,672,945
-
2,672,945|**Expenditure**
**£**
**(248,342)**
Expenditure
£
(2,996,280)
(2,803)
(2,999,083)|**Balance at**
**31**
**December**
**2020**
**£**
**187,595**| |---|---|---|---|---| |||||Balance at
31 October
2020
£
123,275
-| |||||123,275| ## **21. Analysis of net assets between funds** ## **Analysis of net assets between funds - current period** |**Unrestricted**
**funds**
**31**
**December**
**2020**
**£**
Tangible fixed assets
170,871
Current assets
379,408
Creditors due within one year
(274,922)
Creditors due in more than one year
(87,762)
**Total**
187,595|**Total**
**funds**
**31**
**December**
**2020**
**£**
**170,871**
**379,408**
**(274,922)**
**(87,762)**| |---|---| ||**187,595**| Page 33 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **21. Analysis of net assets between funds (continued)** ## **Analysis of net assets between funds - prior period** |Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|Unrestricted
funds
31 October
2020
£
181,704
371,340
(335,435)
(94,334)
123,275|Total
funds
31 October
2020
£
181,704
371,340
(335,435)
(94,334)
123,275| |---|---|---| ## **22. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income/expenditure for the period (as per Statement of Financial
Activities)
**Adjustments for:**
Depreciation charges
Interest receivable
Interest payable
Loss/(profit) on the sale of fixed assets
Increase in stocks
Decrease in debtors
Decrease in creditors
**Net cash provided by/(used in) operating activities**|**Group**
**2 months**
**ended**
**31**
**December**
**2020**
**£**
**64,320**
**10,833**
**-**
**955**
**-**
**(346)**
**66,138**
**(60,967)**
**80,933**|Group
18 months
ended
31 October
2020
£
(326,138)
100,364
(333)
11,460
(29,875)
(12)
60,316
(92,460)
(276,678)| |---|---|---| Page 34 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements for the 2 month period ended 31 December 2020** ## **23. Analysis of cash and cash equivalents** |Cash in hand
**Total cash and cash equivalents**|**Group**
**31**
**December**
**2020**
**£**
**243,357**
**243,357**|Group
31 October
2020
£
169,497| |---|---|---| |||| |||169,497| ## **24. Analysis of changes in net debt** |Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year
Finance leases|**At 1**
**November**
**2020**
**£**
**169,497**
**(10,000)**
**(40,000)**
**(79,477)**
**40,020**|**Cash flows**
**£**
**73,860**
**-**
**-**
**6,118**
**79,978**|**At 31**
**December**
**2020**
**£**
**243,357**
**(10,000)**
**(40,000)**
**(73,359)**| |---|---|---|---| ||||**119,998**| ## **25. Pension commitments** A defined contribution pension scheme is operated by the group. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension costs charged to the statement of financial activities represents contributions payable by the group to the fund and amounted to £4,300 (18 month period ended 31 October 2020: £58,242). There were outstanding contributions at the balance sheet date of £nil (31 October 2020: £nil). Page 35 **Christian Publishing & Outreach Limited** ## **(A company limited by guarantee)** ## **Notes to the financial statements** ## **for the 2 month period ended 31 December 2020** ## **26. Operating lease commitments** At 31 December 2020 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows: |**Amount payable:**
Within 1 year
Between 1 and 5 years|**Group**
**31**
**December**
**2020**
**£**
**50,000**
**75,000**
**125,000**|Group
31 October
2020
£
50,000
83,333
133,333|**Company**
**31**
**December**
**2020**
**£**
**50,000**
**75,000**
**125,000**|Company
31 October
2020
£
50,000
83,333| |---|---|---|---|---| |||||| |||||133,333| The following lease payments have been recognised as an expense in the Statement of financial activities: ||**Group**||| |---|---|---|---| ||**31**||Group| ||**December**|31|October| ||**2020**||2020| ||**£**||£| |Operating lease rentals|**8,167**||80,950| ## **27. Members' liability** Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member. ## **28. Related party transactions** There were no related party transactions in the period (18 months ended 31 October 2020: nil). Page 36