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2024-03-31-accounts

Charity registration number 227720

THE ESTATE CHARITY OF WILLIAM HATCLIFFE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A C Blundy (Chair) Mr G Kirby (Vice Chair) Mr R Clough (Vice Chair) Mr R Hough (Treasurer) Mrs W Kirkman Mr J Watson Mr J Nicholson Mr M Reid (Appointed 4 September 2023) Ms H McIntosh Ms C Melville Reverend S Winn Councillor P Slattery Mr A N Dakshy (Appointed 24 January 2024) Reverend M Schmucki (Appointed 15 September 2024) Clerk to the Trustees Mrs S Tearle Charity number 227720 Principal address St Margaret’s Visitor Centre 2 Brandram Road Lewisham London SE13 5EA Auditor Myers Clark Egale 1 80 St Albans Road Watford Hertfordshire WD17 1DL Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Handelsbanken 4th Floor 50 Southwark Street London SE1 1UN Solicitors Grant Saw Solicitors LLP Wood Wharf Building Horseferry Place London SE10 9BB

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

LEGAL AND ADMINISTRATIVE INFORMATION

Property managers

Daniel Watney 165 Fleet Street London EC4A 2DW

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10 - 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 22

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply 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)" (effective 1 January 2019).

Objectives and activities

The Charity’s objects are :

Subject to :

Trustees continue to seek market rents on all commercial and residential properties and exploit opportunities to improve rental returns. When vacancies occur properties are inspected and, where necessary, a programme of work is implemented to protect the Trustees' long term interest in the premises. Trustees ensure that additional capital invested generates the appropriate return and that the environment in which the Trustees' property investments is situated is preserved and enhanced.

Works to maintain the overall "streetscape" are also undertaken as part of the preservation and enhancement of the properties and their environment.

Trustees do not anticipate any significant change in their strategy during the current year.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Trustees rely upon the Beneficiary Charities to discharge the charitable requirements of William Hatcliffe for the public benefit as defined in the individual Trust Deeds. To aid this Trustees' responsibility is the effective management of the property portfolio and the generation of income.

Achievements and performance

As its name suggests, the Trust is responsible for, and derives its revenue from, the properties with which it was endowed in the Nineteenth Century.

Trustees residential properties comprises 22 flats above their commercial properties in Woolwich Road and 109 units in a block of houses and flats on Tuskar Street, Frobisher Street and Woodlands Park Road in the Royal Borough of Greenwich in South East London. The majority of these properties are let on Assured Shorthold Tenancies but 17 properties are subject to statutory tenancies limiting rental returns.

Gross residential income continues to steadily increase, with like-for-like annual growth exceeding 10%, We have successfully undertaken refurbishment works on returned units with a gross return of around 10% on capital employed. Further refurbishments and modernisations are to be reviewed in consultation with the Trustees and prioritised in on a case-by-case basis, in accordance with cash flow and yield objectives.

Planned maintenance works have focused on window upgrades, roof, rainwater goods and brickwork repairs.

The distribution to the Beneficiary charities are decided by Trustees at their meeting in March each year. This consists of an assured minimum paid quarterly with a further distribution at the end of the year decided at the March meeting.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Achievements and performance (continued)

The continued increase in Gross residential income has enabled the total distributions to the three Beneficiary Charities to be increased by twenty percent to £600,000 for the year ending 31st March 2024 with a minimum assured increased by forty percent to £336,000. This was agreed at the Trustees meeting held on 14th March 2023.

Trustees now consider that the sum of £336,000 should be the minimum assured to the Beneficiary Charities each year, with the total available for distribution being decided by Trustees at their meeting in March each year.

Trustees continue to be of the opinion that the type of accommodation provided by the Trust properties benefits from a high level of demand. They agree with the recommendation of the Managing Agent that as they fall vacant refurbishment to a high standard should be undertaken. Trustees continue to believe that the capital cost is justified by the enhanced rental income that should be achieved, but will continue to carefully monitor cash flow and cost of borrowing to maintain a balance.

All residential and commercial properties are managed by Daniel Watney LLP.

Financial review

Income before grants, and donations for the year amounted to £2,413,287 (2023: £2,230,398). Expenditure was £2,151,652 (2023: £1,808,386). This includes management fees. Total reserves at the year-end amount to £69,788,546 (2023: £69,060,592).

In the context of the strong rental market, the managing agent has taken a balanced approach to renewals with uplifts of 8-10%. The gross residential income now exceeds £2,600,000 pa.

Following the insurance claim for flood damage in July 2021 and a new reinstatement valuation in November 2021 the cost of our building insurance increased dramatically. In addition, the portfolio has also been designated as being in a flood risk area and this together with the claims, has meant the basement units are now effectively uninsured for flood. To mitigate this risk, the trustees are setting aside a regular amount into a Flood Damage and Prevention Fund and will also seek additional or alternative insurance at renewal.

The charity has a bank loan of £800,000 which was raised to cover the development works on 79-81 Tuskar street. It is interest only with full repayment due in 2027. The three resulting properties were re-let at a significantly increased rent. (Combined £99,500 per year). Trustees are setting aside the funds for repayment of this loan.

Trustees will need to have recourse to borrowings for the major building development planned over the next three years. As the final budget cost of the development of 47-53 Woolwich Road, Greenwich (the Island Site) becomes clearer and the planning issues are resolved Trustees will seek to negotiate the necessary loan from Handelsbanken to complete the project.

The bank will be offered appropriate security for its loan as already evidenced by the Legal Charge over Avener House that is in place. Trustees will carefully monitor their cash flow during the term of the loan. As part of the decision process, trustees will check that the rental income from the residential and commercial units on the redeveloped Island Site will enable them to repay all borrowing within a reasonable time frame.

This should be achieved without detriment to their other activities and the level of distributions to the Beneficiary Charities.

Daniel Watney have carried out a desktop property valuation as of 31 March 2024 and have stated the Fair value as £69,705,000.

Reserves - The Charity has net assets of £69,788,546 of which £68,905,000 represents the Permanent Endowment Fund which is the value of the property portfolio (£69,705,000), less the value of the two bank loans (£800,000). There is a total of £558,868 in Designated funds for property maintenance and for the repayment of the bank loans. This leaves the charity overall with General Unrestricted funds of £324,678 at the year end.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Risk assessment

Trustees have assessed the major risks to which the Charity is exposed and reviewed a revised Risk register. They are satisfied that systems are in place to mitigate exposure to the major risks which are as follows:

Trustees review the Risk assessment at least annually and agreed a revised register at their meeting in March 2024.

Structure, governance and management

The charity is a charity limited by a charitable trust deed dated 12 November 1897.

The Charity's Scheme stipulates that the Trustees of The Estate Charity of William Hatcliffe shall, when complete, consist of 16 competent persons being:

Three Ex-officio Trustees.

Thirteen Representative Trustees.

The incumbents for the time being of the ancient parishes of Greenwich, Lee and Lewisham, being Trustees under the above mentioned Scheme of 12 November 1897, shall be the Ex-officio Trustees of the said Charity.

The Representative Trustees shall be appointed as follows:

7 by the Trustees of the Greenwich Charity of William Hatcliffe out of their number.

3 by the Trustees of the Lee Charity of William Hatcliffe out of their number.

3 by the Trustees of the Lewisham Charity of William Hatcliffe out of their number.

Nominees are required to confirm acceptance of appointment as a Trustee and their willingness to act in the interest of the Charity. Each appointment is made for the term of four years.

The Trustees who served during the year and up to the date of signature of the financial statements were: Mr A C Blundy (Chair)

Mr G Kirby (Vice Chair) Mr R Clough (Vice Chair) Mr R Hough (Treasurer) Reverend S Hall (Resigned 1 October 2024) Mrs W Kirkman Mr J Watson Mr J Nicholson Reverend T Goode (Resigned 4 July 2023) Mr M Reid (Appointed 4 September 2023) Ms H McIntosh Ms C Melville Reverend S Winn Councillor P Slattery Mr A N Dakshy (Appointed 24 January 2024) Reverend M Schmucki (Appointed 15 September 2024)

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management (continued)

Mr M Reid was appointed as a trustee representative of the Greenwich Charity in September 2023 to fill the vacancy.

Mr Dakshy was appointed as a trustee representative of the Lee Charity in January 2024 to fill the vacancy.

The Reverend T Goode resigned as an Ex officio trustee of the Lee charity and the Estate charity in July 2023 as he is no longer the incumbent at St Margaret's Church.

The Reverend M Schmucki became the new Rector of St Margaret's Church, and is therefore an ex-officio trustee as of 15 September 2024.

The Reverend S Hall retired as Vicar of St Mary's Lewisham, and therefore resigned as an ex-officio trustee as of 1 October 2024.

New Trustees are provided with a copy of the Trust Deed, the latest financial statements, relevant reports and copies of the Minutes of recent Trustees meetings. Apart from the three Ex-officio Trustees, who are the incumbents of the parishes in which the Beneficiary Charities are situated, all Trustees are nominated by those charities on the basis of their experience and knowledge relevant to a Trust primarily funded by its property portfolio.

The Trustees include in their number professionals of different disciplines as well as lay people with commercial and social experience. Training has recently been provided for Trustees.

Trustees are encouraged to acquaint themselves with the varied physical and geographical nature of the property portfolio. This is to enable them to make informed and prudent decisions based on the recommendations put to them by appropriately qualified professionals consulted by the Trust.

Trustees are made aware of their duties and responsibilities, expected to state their views at meetings and to question the professional advisers who attend Trustees meetings.

Trustees rely upon the advice of the Clerk for the efficient conduct of the Trust's affairs.

The Trustees generally meet twice each year in March and October. There is provision in the Trust Deed to summon Special Meetings.

If the Chair or any Trustee considers it necessary, the Clerk is requested to arrange additional meetings of any group of representative Trustees to consider and report on issues referred to them.

The Clerk is responsible for preparation and dispatch of the meeting notices and agenda with supporting papers.

At their meeting, the Trustees:

The Clerk is responsible for the day-to-day administration of the Charity reporting to the Chairman and ViceChairmen. The Clerk will invite instructions where appropriate.

The Charity acknowledges a relationship with:

A summary of grants paid to the Beneficiary Charities is set out in note 6 to the financial statements.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Plans for the future

The Trustees continue to accept the advice of the Managing Agent that the demand for rental accommodation will continue to be strong. As a result the Hatcliffe Village (as a generic name the Trustees like to use for their properties in Frobisher Street, Tuskar Street and Woodlands Park Road) continues to be strongly placed to take advantage for the following reasons:

• The age and varied nature of accommodation differentiates the Hatcliffe Village from current developments in Greenwich and its environs and offers a marketing opportunity.

The above features continue to be evident in newly refurbished or extended properties. The rental obtained on such properties, and their swift letting, has given Trustees confidence in implementing their plans for new developments and refurbishments.

Refurbishments are carried out for the following reasons:

The Trustees are considering various options for The Island Site. The plan submitted for planning consent is for nine residential units of various sizes and commercial space on the ground floor. This would mean that the development would be in line with the proven successful rebuilding of Sumner House and Avener House. The plans are still going through the planning process. Other options include a sale of the site or redevelopment in partnership with another organisation.

As their strategy develops Trustees will continue to discharge their responsibilities to the three Beneficiary Charities.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Furthermore Trustees have confirmed that there are no conflicts of interest in fulfilling their role as Trustee.

The trustees' report was approved by the Board of Trustees.

Mr A C Blundy (Chair) Trustee

15 October 2024

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024

The Trustees are responsible for preparing the Trustees' 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 and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

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

The Trustees are responsible for keeping sufficient 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ESTATE CHARITY OF WILLIAM HATCLIFFE

Opinion

We have audited the financial statements of The Estate Charity of William Hatcliffe (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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.

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 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 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:

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ESTATE CHARITY OF WILLIAM HATCLIFFE

Responsibilities of Trustees

As explained more fully in the statement of trustees' responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 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 the Act and relevant regulations made or having effect thereunder.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following;

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ESTATE CHARITY OF WILLIAM HATCLIFFE

Audit response to risks identified

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

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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

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.

Paul Windmill (Senior Statutory Auditor) for and on behalf of Myers Clark

5 November 2024

Chartered Accountants Statutory Auditor

Egale 1 80 St Albans Road Watford Hertfordshire WD17 1DL

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2024

Current financial year
Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2024
2024
2024
Notes
£
£
£
Income from:
Donations and legacies
3
-
-
-
Rental and other investment income
4
2,413,287
-
-
Total income
2,413,287
-
-
Expenditure on:
Raising funds
5
1,476,811
-
-
Charitable activities
6
674,841
-
-
Total expenditure
2,151,652
-
-
Net gains/(losses) on investments
11
-
-
466,319
Net incoming resources before transfers
261,635
-
466,319
Gross transfers between funds
(188,681)
160,000
28,681
Net movement in funds
72,954
160,000
495,000
Fund balances at 1 April 2023
251,724
398,868
68,410,000
Fund balances at 31 March 2024
324,678
558,868
68,905,000		 Total
2024
£
-
2,413,287
2,413,287
1,476,811
674,841
2,151,652
466,319
727,954
-
727,954
69,060,592
69,788,546		 Total
2023
£
4,600
2,225,798
2,230,398
1,222,169
586,217
1,808,386
3,957,832
4,379,844
-
4,379,844
64,680,748
69,060,592

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

Prior financial year
Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
3
4,600
-
-
Rental and other investment income
4
2,225,798
-
-
Total income
2,230,398
-
-
Expenditure on:
Raising funds
5
1,222,169
-
-
Charitable activities
6
586,217
-
-
Total expenditure
1,808,386
-
-
Net gains/(losses) on investments
11
-
-
3,957,832
Net incoming resources before transfers
422,012
-
3,957,832
Gross transfers between funds
364,832
320,000
(684,832)
Net movement in funds
786,844
320,000
3,273,000
Fund balances at 1 April 2022
(454,092)
78,868
65,137,000
Fund balances at 31 March 2023
251,724
398,868
68,410,000		 Total
2023
£
4,600
2,225,798
2,230,398
1,222,169
586,217
1,808,386
3,957,832
4,379,844
-
4,379,844
64,680,748
69,060,592

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

BALANCE SHEET

AS AT 31 MARCH 2024

Notes
Fixed assets
Investment properties
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
15
Net assets
Capital funds
Endowment funds
16
Income funds
Designated funds
17
General unrestricted funds		 2024
£
£
69,705,000
87,025
897,488
984,513
(100,967)
883,546
70,588,546
(800,000)
69,788,546
68,905,000
558,868
324,678
883,546
69,788,546		 2023
£
£
69,210,000
90,890
662,117
753,007
(102,415)
650,592
69,860,592
(800,000)
69,060,592
68,410,000
398,868
251,724
650,592
69,060,592

The financial statements were approved by the Trustees on 15 October 2024

Mr A C Blundy (Chair) Trustee

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash absorbed by operations
21
Investing activities
Capital expenditure on investment property
Investment income received
Net cash generated from investing
activities
Financing activities
Proceeds from new bank loans
Net cash (used in)/generated from
financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
(2,149,235)
(28,681)
2,413,287
2,384,606
-
-
235,371
662,117
897,488		 2023
£
£
(1,963,324)
(115,168)
2,225,798
2,110,630
8,000
8,000
155,306
506,811
662,117

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

The Estate Charity of William Hatcliffe is a registered charity. The principal address is St Margaret's Visitor Centre, Brandram Road, Lewisham, London, SE13 5EA.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of investment properties at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses on the assets form part of the fund.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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.

Fundraising costs comprise the costs incurred in maintaining and managing the investment properties. Support and governance costs are those which do not directly relate to charitable activities, and include the costs of audit and statutory compliance.

Grants are recognised and recorded in the financial statements at full cost at the time the funds are committed and communicated to the beneficiaries by the Board of Trustees.

1.6 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the statement of financial activities.

The investment property portfolio is subject a full professional valuation every three years. In intervening years, the portfolio valuation is derived with reference to a desktop valuation.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
2023
£
Donations for 400th year event 4,600

4 Rental and other investment income

**Unrestricted ** Unrestricted
funds funds
general general
2024 2023
£ £
Rental income 2,384,644 2,142,186
Other income 13,025 82,052
Interest receivable 15,618 1,560
2,413,287 2,225,798

Other income in the year ended 31 March 2024, relates to rental sundry recharges. Other income in the year ended 31 March 2023 of £82,052, relates to one off insurance claims.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

5 Raising funds

6 Unrestricted Unrestricted
funds
funds
general
general
2024
2023
£
£
Repairs and other costs of the investment properties
Insurance costs
77,724
74,283
Repairs, maintenance and refurbishment costs
752,487
574,868
Utilities
60,739
57,815
Legal and professional
153,082
104,011
Other fundraising costs
1,378
10,555
Repairs and other costs of the investment properties
1,045,410
821,532
~~Investment management~~
431,401
400,637
1,476,811
1,222,169
Charitable activities
Grants and
donations
Grants and
donations
2024
2023
£
£
Grant funding of activities (see note 7)
600,000
500,000
Share of support costs (see note 8)
55,033
59,759
Share of governance costs (see note 8)
19,808
26,458
674,841
586,217

7 Grants payable

Grants payable
Grants and Grants and
donations donations
2024 2023
£ £
Grants to institutions:
Greenwich Charity of William Hatcliffe and the Misses Smith 300,000 250,000
Lee Charity of William Hatcliffe 150,000 125,000
Lewisham Almhouses Charities 150,000 125,000
600,000 500,000

The payments made to institutions are in line with the charity's objects, as outlined on page 1 of the Trustees' Report.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

8
Support costs
Accountancy
Rent and bank charges
Clerks fees
Loan interest
Audit fees
Trustees indemnity insurance
Arrangement fees
Trustees expenses
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
2,424
-
5,484
-
12,500
-
34,625
-
-
15,840
-
1,460
-
1,600
-
908
55,033
19,808
55,033
19,808		 2024
£
2,424
5,484
12,500
34,625
15,840
1,460
1,600
908
74,841
74,841		 Support
costs
Governance
costs
£
£
3,000
-
5,338
-
16,458
-
34,963
-
-
22,212
-
1,390
-
1,800
-
1,056
59,759
26,458
59,759
26,458		 2023
£
3,000
5,338
16,458
34,963
22,212
1,390
1,800
1,056
86,217
86,217

Governance costs includes payments to the auditors of £12,840 for audit fees for the year ended 31 March 2024 (2023: £13,200).

Governance costs also include payments to the auditors of £3,000 for accountancy fees (2023: £9,012 additional costs incurred for the audit for the year ended 31 March 2022).

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

1 trustee was reimbursed for expenses in relation to meetings during the year of £109 (2023 - 1 trustee: £103).

10 Employees

The average monthly number of employees during the year was nil (2023: nil).

11 Gains and losses on investments

Endowment Endowment
funds funds
2024 2023
Gains/(losses) arising on: £ £
Revaluation of investment properties 466,319 3,957,832

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

12 Investment property

Fair value
At 1 April 2023
Capital expenditure on property
Net gains or losses through fair value adjustments
At 31 March 2024		 2024
£
69,210,000
28,681
466,319
69,705,000

Investment property comprises a mixture of both residential and commercial units. The fair value of the investment property has been arrived at on the basis of valuations carried out by Daniel Watney LLP, Chartered Surveyors, who are not connected to the charity. The valuations were made on an open market basis by reference to market evidence of transaction prices for similar properties.

The entire investment property portfolio was professionally revalued at 31 March 2023. The valuation at 31 March 2024 is based on a desktop valuation that has been undertaken by Daniel Watney LLP, with the next full professional valuation due to be undertaken at 31 March 2026, as per the accounting policy.

13 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2024
£
29,722
57,303
87,025		 2023
£
35,871
55,019
90,890

14 Creditors: amounts falling due within one year

Other creditors
Accruals and deferred income
Creditors: amounts falling due after more than one year
Notes
Bank loans		 2024
£
10,975
89,992
100,967
2024
£
800,000		 2023
£
10,975
91,440
102,415
2023
£
800,000

15 Creditors: amounts falling due after more than one year

In respect of the two 'property Investment Loans' of £400,000 each, both of these have a 'Fixed Priority Legal Charge' over the office and commercial buildings at Avener House held under title deed TGL304152.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

16 Endowment funds

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Balance at
1 April 2022
£
Permanent endowments
Endowment
fund
65,137,000
65,137,000		 Transfers
£
(684,832)
(684,832)		 Gains and
losses
£
3,957,832
3,957,832		 Balance at
1 April 2023
£
68,410,000
68,410,000		 Transfers
£
28,681
28,681		 Gains and
losses
Balance at
31 March 2024
£
£
466,319
68,905,000
466,319
68,905,000		 Gains and
losses
Balance at
31 March 2024
£
£
466,319
68,905,000
466,319
68,905,000
68,905,000

The transfer from unrestricted funds represents the additions to the investment property, £28,681.

17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Property development fund
Bank loan repayment fund		 Balance at
1 April 2022
£
78,868
-
78,868		 Transfers
£
-
320,000
320,000		 Balance at
1 April 2023
£
78,868
320,000
398,868		 Transfers
Balance at
31 March 2024
£
£
-
78,868
160,000
480,000
160,000
558,868		 Transfers
Balance at
31 March 2024
£
£
-
78,868
160,000
480,000
160,000
558,868
558,868

The property development fund has been established by the Trustees and authorised by the Charities Commission on 4 January 2008 in order to provide for the repair, improvement and rebuilding of investment properties.

In 2022/23, the Trustees agreed to establish a Bank Loan Repayment Fund to set aside the funds to repay the principal value of the bank loan when it falls due, in 2027. In order to do so, the Trustees have agreed to transfer £160,000 each year from the unrestricted funds over the five year loan term.

The transfer from unrestricted funds in 2022/23 includes two years' worth of transfers, due to the fund being established after the 2021/22 financial year, which was the year of the loan drawdown.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

18 Analysis of net assets between funds

Unrestricted
Unrestricted
Endowment
funds
funds
funds
general
Designated
2024
2024
2024
£
£
£
At 31 March 2024:
Investment properties
-
-
69,705,000
Current assets/(liabilities)
324,678
558,868
-
Long term liabilities
-
-
(800,000)
324,678
558,868
68,905,000
Unrestricted
Unrestricted
Endowment
funds
funds
funds
general
Designated
2023
2023
2023
£
£
£
At 31 March 2023:
Investment properties
-
-
69,210,000
Current assets/(liabilities)
251,724
398,868
-
Long term liabilities
-
-
(800,000)
251,724
398,868
68,410,000		 Total
2024
£
69,705,000
883,546
(800,000)
69,788,546
Total
2023
£
69,210,000
650,592
(800,000)
69,060,592

19 Operating lease commitments

Lessor

The leases are negotiated over terms of 5-15 years and rentals are fixed for 5-15 years. Some leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.

At the reporting end date the charity had contracted with tenants the total minimum lease payments of £159,808 (2023: £288,208).

20 Related party transactions

Mr A C Blundy, Mr M Reid, Mr G Kirby, Mr R Hough, Ms H McIntosh, Mrs C Melville, Reverend S Winn and Councillor P Slattery, Trustees of the Charity, are also Trustees of the Greenwich Charity of William Hatcliffe and the Misses Smith. The Charity granted £300,000 (2023: £250,000) to this entity during the year. At the year end, £nil (2023: £nil) grants were outstanding to be paid to the Greenwich Charity of William Hatcliffe and the Misses Smith.

Mrs W Kirkman, Mr R Clough and Mr A N Dakshy, Trustees of the Charity, are also Trustees of the Lee Charity of William Hatcliffe. The Charity granted £150,000 (2023: £125,000) to this entity during the year. At the year end, £nil (2023: £nil) grants were outstanding to be paid to the Lee Charity of William Hatcliffe.

Reverend S Hall, Mr J Watson and Mr J Nicholson, Trustees of the Charity are also Trustees of the Lewisham Almshouse Charity of William Hatcliffe and Abraham Colfe. The Charity granted £150,000 (2023: £125,000) to this entity during the year. At the year end, £nil (2023: £nil) grants were outstanding to be paid to the Lewisham Almshouse Charity of William Hatcliffe and Abraham Colfe.

THE ESTATE CHARITY OF WILLIAM HATCLIFFE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

21 Cash generated from operations 2024 2023
£ £
Surplus for the year 727,954 4,379,844
Adjustments for:
Investment income recognised in statement of financial activities (2,413,287) (2,225,798)
Fair value gains and losses on investment properties (466,319) (3,957,832)
Movements in working capital:
Decrease/(increase) in debtors 3,865 (30,028)
(Decrease) in creditors (1,448) (129,510)
Cash absorbed by operations (2,149,235) (1,963,324)
22 Analysis of changes in net funds/(debt)
At 1 April 2023 Cash flows At 31 March
2024
£ £ £
Cash at bank and in hand 662,117 235,371 897,488
Loans falling due after more than one year (800,000) - (800,000)
(137,883) 235,371 97,488