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2021-12-31-accounts

Trustees’ Report and Financial Statements for the year ended 31 December 2021

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Reference and administrative details of the Charity, its Trustees and advisors for the year ended 31 December 2021

Trustees

Anita Adams (Chair – Ascot Governing Body) Tracy Bird

Roy Boulter (Immediate Past Chairman)

Toby Brett (Chair – Membership) Gerry Cleary

Mike Clist (Vice Chair of Governors – Hassocks Governing Body)

Pat Duddy (Vice Chair – Charity Services) Ludovick Halik (Vice Chair – Oxford Governing Body) Mike Hill (Chairman appointed 7th October 2021 and Chair of Governors – Hassocks Governing Body)

Ian Inder

Annette King (Chair – Charity Services)

Ajith Jayawickrema (appointed 7th October 2021) Anthony Mears (resigned 7th October 2021)

Jeremy Phillips QC

Peter Raynsford (Chair – Pension Committee)

Chief Executive Officer

James Brewster

Charity Registered Number

230011

Registered Office

Heatherley, London Road, Ascot, Berkshire SL5 8DR

Auditors

James Cowper Kreston, Reading Bridge House, George Street, Reading, Berkshire RG1 8LS

Bankers

Lloyds Bank Plc, 10 High Street, Bracknell, RG12 1BT

Solicitors

Hunters, 9 New Square, Lincolns Inn, London WC2A 3QN

Pauline Ross (Chair – Oxford Governing Body and Vice Chair – Ascot Governing Body)

Trevor Sparks

Paul Wigham (Chair – Investment Committee)

George Wishart (appointed 7th October 2021)

Contents

Message from the Chairman

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Mike Hill
Chairman of Trustees
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This is the first year that I write the introduction to the Trustees’ Report and Financial Statements.

I would like to pay tribute to Roy Boulter, who served as Chairman of the Licensed Trade Charity for seven years until October 2021. I am delighted that Roy will remain as a Trustee and has now become a Governor at LVS Oxford. He also continues as a Director of the Morning Advertiser. Under Roy’s guidance, the Charity has faced some difficult periods, particularly during the last two years due to the COVID-19 pandemic. He, along with my fellow Trustees, the Executive team and senior leaders, have all steered the organisation through this period with outstanding results. It is a privilege for me to now take on the mantle of Chairman and I thank the Trustees for their confidence in me and their unwavering support.

The results for the year ended 31st December 2021 have been quite remarkable. Our ‘Objects’ of helping those from the licensed trade who are facing ill health, hardship or needing educational support I am proud to say, have been met and exceeded expectations. This is in addition to providing education at our three schools.

My admiration goes to all our schools – with the combination of online teaching and face to face delivery of lessons, LVS Ascot has been seen as the benchmark by many in their peer group. The Principal, Christine Cunniffe, has become well known for her regular online presentations to parents and her media coverage on programmes such as “This Morning” as a voice of authority in education. The academic results continue to be excellent, with pupils completing their education as well-rounded individuals.

Our specialist schools, LVS Hassocks and LVS Oxford, delivered the majority of their teaching on site and remained open during the lockdown periods. I have to say, our Principals, Jen Weeks at LVS Hassocks and Ian Peters at LVS Oxford, under the guidance of Sarah Sherwood, Director of SEN, continued to provide excellent teaching and vocational activities for their learners, during what was a very anxious time for many of these students. Both schools brought on board a number of new staff during this time and they continued to innovate with several awards being won by LVS Hassocks. We are very proud of their achievements.

The heart of the Charity is the delivery of support to those in need by our Charity Services team. I applaud them for dealing with the vast volume of requests for help and their engagement with our Volunteers. I would like to thank all those companies that have helped us raise awareness and given us financial support which has enabled us to help so many individuals.

Often it is the support departments that are forgotten, but are very much the backbone in delivering services to our customers, staff, supporters and Volunteers, whether that be HR, catering, cleaning, maintenance and facilities management, administration, finance, IT and marketing. All of these departments are, at times, having to work remotely yet have ensured the smooth running of the organisation. I pass on my sincere thanks to these highly professional teams.

Both the operational and financial results for the year ending December 2021 are quite outstanding

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and my heartfelt thanks go to all at the Licensed Trade Charity for this achievement. I would also like to thank those who have left the organisation during 2021 but who have also contributed to these results.

I was delighted to welcome two new Trustees to the board – Ajith Jayawickrema and George Wishart – at our AGM and Court in October 2021. I know that they will both add great value to the organisation.

Sadly, since starting to write this introduction, we have lost three former Trustees who have been the backbone of the Charity – Eric Morgan, Barbara Williams and Jeff Booth. Our thoughts and prayers go to all their families. We should never underestimate the dedication and input that they gave to the Licensed Trade Charity.

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Chief Executive’s Report

James Brewster Chief Executive

I concur with the Chairman that 2021 has, again, been an extraordinary year, not only in the level of support we have given to the industry but in maintaining the financial and operational results of the Licensed Trade Charity.

I had hoped that 2021 would be less frenetic than the previous year and that the COVID-19 pandemic would be behind us, enabling a return to a sense of normality. However, we continued to face the escalation of COVID-19 with new variants, further lockdowns and businesses continuing to be badly affected. The reintroduction of working from home and remote learning for a period of time, together with further demands put on our Charity Services team, is a testament to the agility of the organisation.

Demand for our services remained high and we have been proud to play our part in continuing to support licensed hospitality people helping over 120,000 since the start of COVID-19 and giving over £3.3million in grants and services.

The lessons learnt from the previous year stood us in good stead to handle the difficulties of 2021. With the actions taken to ensure a smooth management of both our educational services and the delivery of charity support to the industry, we were able to adapt to the changing environment rapidly. Our teams all rose to the various challenges with enthusiasm and true professionalism. We should all have great pride in the work undertaken.

During the year ending December 2021, we set ourselves the goal of commencing a two-year recovery plan to enable the Charity to be in a more positive financial position, in line with pre-pandemic levels. This began with reviewing both operational and capital costs. Whilst we had set realistic

budgets for all areas of the organisation, we still faced many challenges and it was evident that, with the cost controls that had been put in place, a further re-forecast would need to be undertaken. We achieved a much better financial result than anticipated. This is a credit to all involved, particularly whilst continuing to meet the demands from those in the trade requiring more support. The whole organisation, with the assistance of our committee members and Trustees, are delighted to present these results which demonstrate a remarkable turnaround.

Our three schools have achieved some amazing results – at LVS Ascot we were seen as one of the leaders in the hybrid method of teaching onsite as well as online. LVS Hassocks and LVS Oxford remained open throughout the lockdowns, due to the nature of the cohort of students who face a number of challenges and require in-person teaching wherever possible. The support departments continued to deliver exceptional services, albeit in many cases remotely.

The essence of the Charity has always been the support we give to individuals facing difficulties – the financial, emotional or practical support required grew with intensity and our services were a real lifeline for many. Our teams dealt with the high level of demands in the most sensitive way.

I would also like to pay tribute to all the companies and individuals who donated money to and helped us raise awareness of the Charity to assist many

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colleagues in getting through some very tough times. It has certainly made a big difference and been life-changing to many.

We sadly lost several people during the year due to the pandemic, and many of our staff and Volunteers also suffered both family bereavements and ill health. Our thoughts go to all those affected and I would like to pay particular tribute to our Human Resources team, who ensured that the welfare of all colleagues remained at the top of our priorities.

As I write this introduction, we are facing a humanitarian crisis in the Ukraine and our thoughts must go to all the families suffering at this time. Very often in conflicts such as this, it is the children who suffer the greatest, whether they be Ukrainian or Russian, who have no voice. This will inevitably bring more challenges to the Charity for 2022 with the economy being affected and investments challenged.

The numbers of pupils attending our schools and our commercial operations will also be impacted, together with more requests for support from those facing difficulties in the trade.

I am confident that the Charity, and all those who work and volunteer, will rise to these challenges as they have, in particular, over the past years. I would like to thank all our Volunteers, supporters, staff members, contractors and our Trustees for their continued, unwavering support and guidance over the last year.

Whilst this Trustees’ Report reflects on 2021, I cannot miss the opportunity to thank everyone involved in Pedalling for Pubs 2022. Initially planned for 2020 and postponed to 2022 due to COVID-19, the support for this initiative has been nothing short of astonishing.

At the time of writing, 26 riders from across the sector have completed a 335km challenge cycle ride across Jordan. Teams across the UK collectively rode over 8,200km and together raised over £260,000 (believed to be the largest amount raised in a single event for hospitality charities). Everyone involved donated a huge amount of time and effort to make this initiative a success. It has raised awareness of our Charity and our charity partner, Only A Pavement Away, that has seen the hospitality sector come together in a way that many have not seen before. My thanks go to each and everyone involved.

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Trustees’ Report for 2021

The Trustees are pleased to present their Report and Financial Statements for the Licensed Trade Charity, its associate company and trading subsidiary for the year ended 31 December 2021.

Objectives and activities

The Charity continues to be committed to helping those who have previously worked or are currently working in the licensed drinks industry to alleviate poverty and distress. Its key objectives during the year were:

helping those who are sick, infirm or distressed; aiding those experiencing financial hardship;

The Charity educates children of the general public, but with preference to those working in the licensed trade, through its schools.

In setting its objectives and planning its activities, the Trustees have given careful consideration to the Charity Commissioners’ general guidance on public benefit and, in particular, to its guidance on advancing education and fee charging in accordance with Section 4 of the Charities Act 2006.

The Trustees apply the funds of the Charity at their discretion and in accordance with the charitable purposes and objectives of the Charity to provide financial assistance, support and advice to those who are currently working in, have previously worked in, or are retired from the licensed drinks trade.

All applications for help are means tested and vetted by the Charity Services Committee, which has delegated powers from the Trustee Body to administer the grant making policy.

During 2021, the Charity committed £1,386k to provide:

grants to help with education and training.

The Charity also:

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trains telephone Befrienders to call isolated people from the trade who are suffering from loneliness, to offer support and companionship on a regular basis.

The aim of the schools is to inspire independence.

The Charity delivers a high level of education and care for children through its non-selective, coeducational schools; LVS Ascot, LVS Hassocks and LVS Oxford.

Thanks to the addition of LVS Hassocks and LVS Oxford, for children with a diagnosis of autism, the Charity is able to offer education to children with a broad range of educational abilities.

LVS Hassocks and LVS Oxford are predominantly supported via local authority funding for learners with Education, Health and Care plans (EHCP’s).

During 2021, bursaries of £362k were awarded to children from the licensed trade, who have either an educational or emotional need that cannot be met through their existing state provision, compared to £301k in 2020. To apply for a bursary, parents must have worked in the licensed trade for at least five years. Awards are also means tested and therefore are dependent on parental income.

LVS Ascot also offers scholarships to recognise academic, sport, music, art and drama potential. These are advertised to parents and prospective parents and awarded in the above categories, or according to the specific requirements of the external bodies that gave the funding. The value of these awards was £420k during 2021, compared to £312k in 2020.

Further details of the Charity’s bursary and scholarship policies and how to apply for both are available at www.lvs.ascot.sch.uk .

At LVS Ascot, fee discounts of up to 20% are available for fee payers who have been working in the trade for at least five years; discounts are also available to members of the Armed Forces, Diplomatic services and for local senior academic staff. In 2021, the value of these discounts amounted to £549k, compared to £306k in 2020.

As part of the emphasis placed on attracting and retaining high-calibre staff, a discount which increases with length of tenure is offered to staff members who educate their children at LVS Ascot. Also, to reinforce the value placed on continuity for families, a discount is offered where a family has more than two children at the Ascot school.

During the first quarter of 2021, due to the ongoing COVID-19 pandemic and having given regard to guidance on advancing education and fee charging in accordance with Section 4 of the Charities Act 2006, the Charity offered a number of fee remissions in order to enable children to continue their education with LVS Ascot.

Structure, governance and management

Constitution

The Licensed Trade Charity was established in 1793 by publicans who wanted to provide support and a safety net for fellow publicans and their families. For more than two centuries, the Charity has worked to improve people’s lives by providing a range of support, from setting up schools to educate children, providing houses for the elderly, to awarding financial grants for people in need and continuing to run independent schools today.

The Charity operates under the Royal Charter of the Society of Licensed Victuallers, dated 3rd May 1836, and a Supplemental Charter dated 5th February 1999.

Following the merger of the Society of Licensed Victuallers and the Licensed Victuallers National Homes in 2004, a further Supplemental Charter, dated 29th June 2012, was approved by the Privy Council.

During 2017, the Charity applied to the Charity Commission and the Privy Council to widen its objects in order that it could provide education for all ages (previously this was restricted to children) and to provide increased care to the elderly with both these provisions maintaining preference to those from the licensed trade. Both these requests were agreed by The Queen’s Most Excellent Majesty in Council on February 8th, 2018 and the objects of the Charity amended accordingly.

Charitable status

The Charity helps all those in the licensed trade and operates under the Charity registration number 230011.

Governing body

The Trustee Body consists of between 12 and 18 Trustees (the number being at the discretion of the Trustees), two thirds of whom must be licensed victuallers with the remainder, members of the Charity.

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Trustees must be a member of the Charity before they can stand for election. Each term of office is three years, although Trustees who are aged 70 or older must seek re-election every year. Two general meetings (or courts) are held each year, one in April and one in October, to which all members are invited.

The Trustees are responsible for overall governance and strategic direction. The Trustee Body delegates power within agreed budgets and responsibilities to committees that oversee the delivery of its Charity Services policy, Education policy, Fundraising activities and Membership.

The Trustees formed an Investment subcommittee in 2021 which has responsibility for governance and performance management of its investment portfolio.

The Trustees consider the Trustee Body along with the Executive team, which includes the Chief Executive and five senior staff members, comprises the key management personnel of the Charity, in charge of directing and controlling the Charity and running the operations on a day to day basis.

The Chief Executive regularly meets with the Chief Operating Officers of a number of occupational charities to discuss issues faced, share initiatives and best working practices.

The Charity also liaises closely with a number of other occupational based charities to share grant awards in order that funding is awarded that could otherwise not be made.

Key management personnel remuneration

The pay of the Charity’s Chief Executive is reviewed annually by the Trustee Body. The pay of the Executive Team is reviewed annually by the Chief Executive. Pay is normally increased in accordance with average earnings, although in both 2020 and 2021 a pay freeze was implemented. Remuneration is also bench-marked with charities of a similar size and activity, to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses are disclosed in note 13 to the accounts. There were no related party transactions in the year.

Trustees are required to disclose all relevant interests, register them with the Chief Executive and, in accordance with the Charity’s policy, withdraw from decisions where a conflict of interest arises.

Group structure

The Licensed Trade Charity has a wholly owned non-charitable trading subsidiary, Elvian Limited, which makes available the facilities of the schools to various organisations for events, educational and leisure purposes. The Charity also holds 25% of the equity of The Morning Advertiser Limited which is treated as an associate company in line with the Charities SORP (FRS102).

The Charity’s regional fundraisers have been unable to raise any material sums in 2021 due to the pandemic and some have now decided to close.

Induction and training of trustees

As part of its strategic planning process, the Charity conducts a skills audit of the Trustees on a regular basis and has compared it to the skills required by the Charity now and in the future. In addition, the Charity actively co-opts people with the desired skills to the Trustee Body and subcommittees, as well as actively recruiting new Trustees.

On joining the Charity, all Trustees follow a general induction programme with specific training, either provided in-house or externally, to prepare them for whichever committee they are appointed to. There is also an on-going training programme for all Trustees.

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Sector achievement in 2021

Educational performance

LVS Ascot Infant and Junior School

Report 2021

The return to online schooling in January 2021 was not an ideal way to start the new year, however the experience of previous online learning in 2020 meant that the staff and pupils were able to make the switch quickly and efficiently, with a full timetable of lessons taking place from day one.

Throughout this lockdown, the Infant and Junior School remained open for the children of key workers and those pupils identified as vulnerable, either due to family circumstances or their learning needs, and we had approximately 70 children in school each day. During this period, the school also offered the pupils some co-curricular activities online to support their mental well-being, and members of the management team had regular calls with parents to ensure all was well.

Our school counsellor continued to offer support to those pupils on her list via Teams calls. The children returned to school in March, however they were still restricted to working in ‘bubbles’ and the school was divided into zones. The impact of this was seen, as while academic progress remained good, their social development was not as advanced as we would have expected it to be. Pupils were having to learn about effective communication, simple conflict resolution and collaboration all over again.

On return to school in September 2021, life was almost normal and all co-curricular activities resumed. School visits took place to the Living Rainforest in Newbury and Butser Ancient Farm, as well as the resumption of sporting fixtures against other schools. In November, all pupils in Years 5 and 6 took to the stage to perform the musical ‘Born for a Life at Sea’ which was written, in its entirety, by staff at the school. The musical score, lyrics and script were outstanding and the pupils played to a packed theatre for three consecutive nights. To end the year, we were able to hold most of our traditional Christmas events in person – as ever the Key Stage One Nativity performances heralded the start of the festive season and the youngest pupils also enjoyed a visit from Father Christmas and a Christmas party. It was also wonderful to take the entire Infant and Junior School to the pantomime in Windsor. For some of our children, this was their first ever visit to a theatre and the wide eyes and smiling faces were a joy to see.

While 2021 had its challenges, the strength of the community at LVS Ascot and the values of the Licensed Trade Charity meant that our pupils and staff felt supported throughout and we emerged stronger than ever to embrace the new calendar year in 2022.

At the end of the summer term, we were delighted that the academic progress of pupils was in line with our expectations. Our end of year results outstripped the national averages from 2019, which was the last year of reported assessments at Key Stages One and Two – a testament to the dedication of the staff and the willingness of our pupils and parents to work together during this period to achieve the best possible outcomes.

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LVS Ascot Senior School

Academic results summary 2021

Overview

2021 was a year like no other for our exam year cohorts. Whilst it was the second year that exams had been cancelled, the process of Teacher Assessed Grades (TAGs) was much more in-depth and prescriptive than the previous year, when Centre Assessed Grades (CAGs) were used.

As a Centre, we were bound by the strict protocol set out by the Joint Council for Qualifications (JCQ) and the process of calculating and submitting final grades took place over a period of four months.

The Teacher Assessed Grades (TAGs) process

Final grades awarded were based on a portfolio of collated evidence which ranged from internal exams, reporting grades and assessed coursework to a full suite of internal assessments conducted in exam conditions. Once grades were decided by academic Heads of Department, we entered into a period of internal quality assurance where all evidence and grades awarded were moderated and then put to Head of Centre and an academic panel in the senior management team. Comparisons of grades were made to previous years, Cognitive Ability Test (CAT) data and year group profiles to ensure consistency.

All results submitted as TAGs were awarded as final by exam boards. On Results Day in mid-August 2021, pupils were pleased overall with results. As a Centre, we were delighted with the outcome and the clear decisions at the appeals stage were evidence that a robust and consistent process of validation of grades had been employed.

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GCSE Results 2021

There was a disparity in overall results compared to 2020, when results were decided by CAGs. For GCSEs in 2021, we saw an overall decrease in good passes (grades 9-4) by 2.5%. This was expected due to the academic profile of the cohort compared to 2020. The results also compared favourably to the national average, being 17.6%, above the national pass rate (as opposed to 18% in 2019 when exams last went ahead), further demonstrating that pass grades awarded were not inflated on other years and reflected the expected outcomes of the cohort.

Value added for GCSEs in 2021 was 0.9 on average, demonstrating that grades awarded were in line with, if not slightly above, predicted outcomes taken from CAT data.

GCSE pass rate (Grades 9-4) 2017 – 2021

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2021
2020
2019
2018
2017
70% 75% 80% 85% 90% 95% 100%
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Breakdown by grades and comparison

2017 2018 2019 2020 2021
A* (grades 9-8)
or equivalent 8.1% 9.4% 17.56% 26.6% 22.5%
A*-A (grades 9-7)
or equivalent 30.3% 24% 33.1% 46.7% 39.36%
A*-B (grades 9-6)
or equivalent – 61.5% 71.22% 67.6% 60.4%
A*-C (grades 9-4)
or equivalent 85.5% 81.5% 85.67% 97.2% 94.7%

A-Level Results 2021

For A-Levels, we saw an increase of 6.2% in the pass rate (grades A-C) in comparison to 2020 and the academic profile of the year group accounted for this expected increase. Top grades were notably up but the percentage of top grades (A to A) awarded was below the national average. Again, this demonstrated that the grades awarded reflected the actual outcomes and that we had not taken part in the grade inflation so widely reported in the press.

A-Level passes grades A-C 2017 – 2021

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2021
2020
2019
Grades
2018 A-A
2017 Grades
A-C
0% 20% 40% 60% 80% 100%
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Breakdown by grades and comparison

2017 2018 2019 2020 2021
Grade A* 4.6% 5.7% 4.6% 8.05% 12.31%
Grade A 11.8% 7.5% 11.8% 14.94% 22.05%
Grade A*-A 16.4% 13.2% 16.4% 22.99% 34.4%
Grade A*-B 48.2% 39.4% 35.9% 49.43% 56.4%
Grade A*-C 78.4% 67.9% 67.3% 75.29% 81.5%

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Well-Being Report for the calendar year 2021

University Destinations

We are proud to celebrate our pupils’ successes. 100% of pupils who applied to university in 2021 received a firm offer after Results Day, with nearly a third of the cohort gaining places at Russell Group universities. This was a fantastic achievement for our Year 13 pupils in a year when there was a shortage of university places due to an increase in top grades awarded and the 2020 cohort deferring places.

LVS Ascot has a dedicated Head of Well-Being. The Head of Well-Being line manages the six Day Housemasters and Housemistresses (of which Boarders are also members with respect to their daily in-school life).

The school has established a Well-Being Hub (finalist in the TES Independent School Awards for Well-Being Initiative of the Year 2021) that offers a range of support: Disordered Eating, LGBTQ+, anxiety, depression and self-harm. Referrals are also made to the safeguarding team and external agencies as appropriate. LVS Ascot is a diverse and inclusive school and to support the well-being of our LGBTQ+ community, we have entered the Educate and Celebrate LGBTQ+ Award programme (outcome expected in 2022), which will structure the support (on a macro and micro level).

Progress in other Key Stages

The beginning of the 2021 year saw school closed for the first half of the Spring term. We returned to online learning and continuity of education was ensured. A model of blended learning is now fully established and a focus has also been placed on developing fine motor skills for the younger years in the classroom. Moving forward, emphasis will be placed on monitoring and measuring progress, in order to target increased value added in the next two years.

The Hub delivers well-being related clubs such as meditation and mindfulness and also acts as a triage for other well-being services within the school, including counselling and referral to Housemasters and Housemistresses, who lead the pastoral care of the members of their Houses.

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Boarding

COVID-19 restrictions on travel meant our

boarding numbers fell from 185 to 143 during 2021. We anticipate this figure will begin to recover from September 2022. Our boarding students enjoyed a wide range of trips including:

Regular trips to local town centres

Rock Climbing

Gravity Force (indoor trampoline park)

Axe throwing, archery and air rifle shooting day

Boarding Houses stayed open during February half term, Easter and May half term to offer care and security for international pupils who were unable to get flights home. The usual routine of the day was changed to facilitate lessening the impact of the lockdown for those boarding students.

The students enjoyed their:

Brooklands Aviation Museum

Natural History Museum

Footgolf

Kew trip to PGL Adventure Weekend in Dorset

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Sector achievement in 2021

Specialist education

LVS Hassocks

LVS Hassocks remained open throughout lockdowns. While there were a number of students who struggled to attend due to their anxieties regarding the virus, work was sent home to ensure continuity of education and therapist sessions were held on-line. The curriculum was adapted to ensure that as much learning as possible took place outside and there were regular opportunities for physical exercise, as many students were unable to access any leisure facilities.

LVS Hassocks won several awards and achieved a number of quality marks during 2021 including:

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Academic results summary 2021

Sitting formal exams can be especially challenging for young people with a diagnosis of autism. Managing their preparation and environment to support them overcoming their anxiety and sit those exams is an important part of our specialist educational provision. GCSE results were positive with the following grades achieved:

GCSE Art pass rate 75%

Destinations

Year 11 and Year 13 leavers went on to multiple destinations including Brighton Metropolitan College, Plumpton, NESCOT and Brinsbury, which are all mainstream colleges, and DV8 which is a creative college for SEN students.

The school continued its successful partnership with Albion in the Community (the official charity of Brighton & Hove Albion, helping people to get active and learn new skills) which enabled students to gain valuable experiences with an external organisation once COVID-19 restrictions were eased. In December 2021, Sixth Form students visited the Sky Bar in London as a thank you for the mentoring roles that they have undertaken with some of the school’s younger students. While the trip was a celebration for all, students were given the opportunity to travel on trains and tubes and experience a busy environment, further developing social skills and independence.

Progress

As the school remained fully open, we were able to continue with delivering our normal curriculum. Students completed internal and external assessments and we were able to support Education, Health & Care Plan (EHCP) outcomes, demonstrating progress made through the AQA Unit Award Scheme and other awards.

Well-being

The Well-being Centre opened in September 2021 and hosts the school nurse and the Wellbeing Classroom. In this area the mental health of students is supported along with developing understanding through health studies lessons. Students can use this area as a safe space and in addition our COVID-19 testing occurs here.

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Sector achievement in 2021

Specialist education

LVS Oxford

LVS Oxford remained open throughout lockdowns. For those students whose anxieties about COVID-19 meant they struggled to attend in person, online learning was available to ensure their continuity of education. An adapted curriculum facilitated outdoor learning as much as possible and the students helped construct a wildflower meadow as one of their projects.

Following the departure of two members of the senior leadership team in the early part of 2021, the school appointed a new Principal, Vice-Principal and Deputy Head. The incoming team worked hard to implement new systems and procedures, ensuring that the school was compliant with ISI (Independent Schools Inspectorate) standards, in preparation for an inspection.

Academic results summary 2021

In addition to the usual revision, students at the school are supported to prepare for the exam environment and structure. GCSE results in the summer of 2021 were positive with the following results:

Licensed Trade Charity Trustees’ Report and Financial Statements 2021 15

Destinations

Destinations for leavers included Abingdon and Witney College, Stratford on Avon College, Berkshire College of Agriculture (all mainstream colleges) and work placements.

In November, students visited Le Manoir aux Quat’Saisons and had a 40-minute tour of the kitchens, followed by a demonstration from the Executive Head Chef, Gary Jones. Work experience was offered, and one student has taken part in this to date.

A celebratory Prom was held for Sixth Form students, with a barbecue and balloon arch for photographs. Students elected their Prom King and Queen who were duly presented with sashes.

Progress

New curriculum documents and assessment grids were introduced to provide breadth to the curriculum and greater detail to the assessment of progress. Students now follow two learning pathways concurrently. The academic pathway focusses students on qualifications and academic achievement toward their aspiring destination, while the learning for life curriculum develops the social, communication and employability skills required for them to succeed beyond LVS Oxford.

Well-being

The School has refined its aims and ethos to encompass well-being as one of its central aims. The overriding ethos of building confident individuals, successful learners and responsible citizens remains the same, but a more direct focus on well-being as the core value, with the aim of supporting aspiration toward their chosen destination. This has led to a more refined and purpose driven focus on well-being. Early indicators suggest a significantly positive impact on focussed achievement and attendance.

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Sector achievement in 2021

Our people and Human Resources

2020 and 2021 brought us one of the biggest challenges for any organisation facing a pandemic head on. With political and economic changes around the world, the UK Government brought in different solutions to protect people from COVID-19, adding to the workloads of everyone within the Charity.

We had 376 employees plus Sodexo and our IT services working in all our units. Our education teams were testing pupils and themselves whilst continuing to provide an education to pupils. Charity teams and support services took up the everyday challenge and supported their fellow colleagues, students and people in need. Everyone embraced the new digital world which has transformed the way we work and increased our ability to collaborate.

For HR, the link between people and the Charity’s outcomes was ever more apparent. The team were exceptional at continuing the high levels of legislative administration and HR services in Employee Relations, Learning and Development, Recruitment and HR Strategy for the Charity. The team worked throughout the pandemic at Ascot and launched a new HR system in April 2021. CIPHR is a HR system hosted in the cloud that manages payroll, learning management and recruitment, includes timesheets, absence management, safeguarding checks management, and interfaces with iSAMS, National College and Educare training platforms.

The team worked hard to get the system up and running in time for the new tax year. More modules will be added in the future.

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THE LTC WAY: Our core values

Pride

Responsibility

Care

Passion

Honesty

Doing things A real love of Having Doing things Taking to the best of our industry/ respect for properly decisions our ability profession others Having Completing Being proud of Wanting to Being integrity tasks achievements do our best bothered Being realistic Getting Caring for our Enthusiastic Customer results environment about our service focused Being trustworthy Gaining Being smart Wanting to serve Wanting to customers’ our customers help others Respecting confidence Having high rules standards Having high Being Being standards selfless Helping others respected Being professional A focus on Making a Allowing people to reach their what we do difference Respecting potential our customers Excited and Respecting our wanting to be part of an customers organisation

Completing tasks

The new HR management system will provide a self-service section for employees to view their details and will be able to give more detailed statistics, information and trends.

The HR team have supported people going through changes due to the pandemic, placing personnel on furlough where required, liaising with staff who needed protecting, contacting employees to support them whilst working from home, understanding that resilience, goodwill and common purposes were underpinning the organisation. We signposted people to external services to support their financial, physical and mental well-being thanks to our Employee Assistance Programmes and occupational health.

During 2021 many people have reflected on their lives and the changes to their lives brought about by pandemic restrictions. Some have made decisions about how they want to work post pandemic.

Recruitment and retention were the two significant issues facing all employers within the UK as we exited 2021 and headed into 2022. The job market is now a very different landscape, as too are the expectations of employees, post pandemic. Managing people’s expectations whilst fulfilling the Charity’s needs have been a constant theme throughout the year.

We continued to offer training and personal learning and development throughout the year to encourage our teams to upskill, some of that delivered online and some in person.

Our core values are important and we strive to represent them through every interaction with our internal and external customers. We employ the right people, in the right jobs, with the right attitude and 2021 gave us the opportunity to further focus efforts to live by those values, always encouraging our people so that their strengths and capabilities moved the boundaries of what was possible.

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Diversity and Inclusion

As an employer we understand the importance of a diverse and inclusive talent pool within our organisation to support employee retention, financial performance and an exciting culture to work in.

Ethnicity across all sites

White - British 257
White - Irish 5
White and Asian 1
White and Black Caribbean 1
White - any other White background 25
Asian or Asian British - Indian 9
Asian or Asian British - any other Asian 2
Chinese 1
Black or Black British - Black - African 2
Black or Black British - any other Black 1
Mixed - White and Black African 1
Mixed - any other Mixed Background 1
Any other ethnic group 3
Information not yet obtained 4
Information not provided 32

Apprenticeships

The LTC is part of the Government’s Apprenticeship Levy. The levy is only be paid on annual pay bills in excess of £3 million, so less than 2% of UK employers pay it. It was introduced in April 2017 to create a pot of money those organisations can use for apprenticeship training. The money can be used for new or current employees of any age.

In 2021, we used our allocation to train 14 of our employees. Examples of people we have trained plus our traditional apprentices are LVS Hassocks and LVS Ascot Junior School Learning Support Assistants, Headteacher, Senior management and Maintenance services. The Charity has benefitted from incentive payments for taking apprentices on and over £80,000 of funding in 2021.

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Sector achievement in 2021

Estates and the environmental impact of our schools

2021 Estates Report

During 2021, the Estates teams successfully managed to deliver a programme of meaningful capital and operational projects to enhance the functionality and appearance of the LVS schools. While the level of expenditure was lower compared to previous years due to the impact of

the pandemic, the LVS schools continued to be maintained to a high standard to meet the needs of their communities.

Using both in-house and contractor resource, here are some examples of the projects that were delivered:

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LVS Ascot

Hampton House was refurbished, which comprised redecoration, flooring and new lighting to all the bedrooms, common rooms, staff accommodation and circulation areas. We also replaced all the kitchenettes, washrooms and toilets. This project was the last of a series of Boarding House refurbishments, which started with Blenheim House in 2015.

The Learning Resource Centre received a light refurbishment and a change to the furniture layout. All the lighting was replaced by our in-house team, proving more cost effective and helping us transition to more energy efficient LED lighting.

As part of the security enhancements programme, a new CCTV system was installed, providing improved coverage with the benefit of 60+ cameras. The system can provide advanced analytics such as human motion detection and remote notification. Furthermore, a new visitor management system was implemented in the receptions to improve the accountability and the induction of visitors and contractors.

The Junior School playground was revamped with new play equipment, trim trails, artificial grass, and repairs to the existing apparatus. The aim was to create a natural woodland play area to promote outdoor learning.

LVS Hassocks

The Kingsland building, comprising of classrooms and office accommodation, was externally and internally redecorated during the summer, modernising the appearance of the building. While the scaffolding was in place, we took the opportunity to undertake essential repairs to the fascias, soffits, roof and replace all the guttering.

The student toilets next to the dining hall benefited from a much-needed refurbishment. New flooring, wall cladding, lighting, toilets and vanity units were installed to modernise these areas.

Part of the ground floor of Ditchling was converted to create a new Health and Well-being Centre. The accommodation includes a consultation/treatment room, office and learning space.

The horticulture facility has been rejuvenated. New raised beds, polytunnel, workshop, and a chicken coop were installed to deliver a rich outdoor education to the students.

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LVS Oxford

Many smaller estates related projects were delivered to enhance the safeguarding of students and staff and the operation of the school. The key projects included the replacement of water heaters and heating controls, new CCTV and intruder alarm systems and fire protection works such as the installation of compartmentation, fire doors, and a new detection and alarm system.

In terms of outdoor projects, the Estates team created a wild-flower meadow maze, which was designed by one of the students.

Sustainability

To encourage more sustainable forms of transport, the Charity has installed electric car charging stations at each site. Uptake of staff using these chargers has been good and we plan to install more in the future to meet the growing demand.

Sodexo – site services

LVS Ascot

We spent the first part of the year reacting to the ever-changing rules and regulations imposed because of COVID-19. All service team members were very flexible and we managed to keep the catering and domestic service departments up and running at all sites.

In September, when restrictions were relaxed and hospitality events allowed, a marquee was installed at LVS Ascot to provide an outside venue for key school events (13 events were held over 9 days) including, the Year 11 Ball, Year 13 Leavers event, Open Days and the parents and students being welcomed back on-site for the start of term. The team catered for over 3,000 people with a varying array of refreshments, hot and cold buffets, afternoon teas, cakes and drinks.

We continue to implement other energy saving initiatives. LED lighting replacement, thermally insulating buildings, installing energy-efficient boilers and building management systems are helping us reduce our carbon impact.

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LVS Oxford

In late October, a small group of sixth form students from LVS Oxford had the chance to go behind the scenes at one of the UK’s finest gastronomic experiences, Le Manoir aux Quat’Saisons. This was organised by Samantha Edwards, Sodexo’s General Services Manager at LVS Oxford. The eight teenagers, who are studying BTECs in Hospitality, Travel and Tourism, sampled delicious food and observed the exquisite preparation behind food service at the restaurant, where the multi award-winning Raymond Blanc is the Chef Patron.

Le Manoir’s Executive Head Chef, Gary Jones, the holder of two Michelin stars, gave the students a 40-minute insight into how its kitchen operates and showed them around the butchery and bakery sections.

LVS Hassocks

The Sodexo team supported the students with the Oast Café, which is open on Fridays to all those looking forward to a treat after a busy week. The students have raised money for Children in Need, Macmillan Cancer, and National Hospitality Day to name a few.

Four students from LVS Hassocks went on a oneday barista training course at our patron’s very own racetrack, Ascot Racecourse. This venue is known all over the world and is also in partnership with Sodexo to supply a wide range of hospitality and catering. The students got the opportunity to make and understand what went into the different drinks and experience dealing with real customers.

As part of our Carbon Reduction responsibility, our preferred catering partner, Sodexo, is committed to sourcing Red Tractor assured products, sustainable fish and products that are in season wherever possible. Sodexo were the first catering company to ensure that its fresh meat, sourced from British farms, is Red Tractor accredited.

There was an array of special events held throughout the year at the schools – the most popular were:

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Sector achievement in 2021

Fundraising

As we continue to develop the Charity’s relationships across the sector with operators, associations and individuals, and raise the profile of the Charity as an integral part of the hospitality community, we benefit from an ever-increasing number of fundraising opportunities.

We work hard to deliver value to fundraising partners through shared PR and social media and to recognise that their support for the LTC must also meet their own Corporate Social Responsibility (CSR) and PR objectives.

COVID-19 continued to impact our usual fundraising channels for our Regional Supporters, LVAs (Licensed Victuallers Associations) and LAs (Ladies Auxiliaries). Despite restrictions meaning their usual fundraising events could not take place, they were still able to collectively donate over £10,000 to the Charity and we thank them for their contribution.

Our collaboration with well-known and respected household brand, Tyrrells, continued with shared PR and social media around their launch of a new flavour and a donation of £50,000 to the Charity.

Support from associations, operators and their people continues to grow. During 2021 we were grateful to receive donations from:

Licensees Unite

Mischief Theatre

Hogs Back Brewery Greene King

Heineken

Sodexo

Stonegate

The team at Stonegate used some of their lockdown time to write short stories of their experiences in pubs and, under the leadership of Mr Colin Hawkins, published a book ‘Short Stories from Down the Pub’. This book is being sold through Amazon with all profits coming to the LTC. The book is a great read and a great gift.

National Hospitality Day saw a collaboration of four charities, including the LTC, come together to promote a day ‘celebrating the places we love’ in September 2021 to raise funds for the Charity.

In 2019, Pedalling for Pubs was launched. This was a collaboration between KAM Media, Licensed Trade Charity and Only A Pavement Away to undertake a challenge cycle ride with the goals of raising awareness and funds for both charities. The ride was postponed in 2020 and then again in 2021 due to COVID-19. That ride has now taken place in 2022, with 26 riders from across the hospitality sector having completed 335km across Jordan. At the time of writing, they had raised over £260,000. The profits will be split equally between the two charities. We believe this is the largest amount raised in a single event for hospitality charities.

Interest in, and support for, the event grew beyond all expectations, with one rider saying that the initiative has brought the sector together like no other before it.

Plans are in place for a 2023 ride and our thanks must go to all of the riders and especially to Katy Moses from KAM Media, the driving force behind this initiative.

We are also proud to have continued our relationship with Greene King, delivering their second Team Member Support Fund for those most harshly impacted by COVID-19. Through 2021, their donation of almost £500,000 funded the distribution of small hardship grants to Greene King staff members in need.

As we look to the future for our fundraising, we will continue to grow Pedalling for Pubs. The location for the 2023 ride has been announced and a waiting list of riders has been established.

We are always grateful for invitations to events that allow us raise awareness and even more so for those that allow us to fundraise for the Charity. Those invitations continue to grow and we will pursue those opportunities.

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Sector achievement in 2021

Charity Services

At the start of 2021 we could not have foreseen that COVID-19 restrictions would last almost another year and a large proportion of licensed hospitality people would remain furloughed on 80% pay for the majority of that time.

In the summer, when their doors opened for business again, the sector was faced with further challenges. Staff shortages were evident across the sector as a result of many people re-evaluating their work life balance and deciding to leave hospitality in favour of logistics, retail, and the care sector. Some were not returning to hospitality having found alternative employment during lockdowns and many international staff chose to remain in their home countries, as their lives moved on or they were unable to return due to COVID-19 restrictions or Government policy.

A deterioration in the behaviour of customers coming out of lockdown was reported, with changed expectations and an over-exuberant approach to their consumption and celebrations. These challenges led to an increased pressure on licensed trade workers and their mental well-being.

There were 2,061 calls made to our helpline during 2021. Our helpline provider, Care First, reported a steep rise in the percentage of people needing support for emotional issues. In 2020, the split between practical and emotional support had been 50/50 and 2021 saw that change to 70% of calls for emotional support and 30% for practical guidance from our information specialists.

COVID-19 also placed people’s relationships under immense pressure and this was reflected in our grant applications. As our current helpline provider does not offer couples counselling, we approached Relate and formed a partnership with them in April 2021 to offer counselling for couples and children, filling a gap in the support available to the sector and our services.

Alongside our strategy to offer support that helps people before they reach a crisis point, we wanted to offer this service to people working less than our usual criteria of five years in the trade. We believe that if people can address their relationship issues earlier, it may reduce the chance those issues will spiral into crisis that includes housing, debt, and wider family relationships.

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We streamlined and improved our application process to be easier for applicants and reduce the fall out rate from initial enquiry to application. We reduced the number of questions on our application form and allowed people to apply online, saving their application as they went. This proved successful and the conversion rate increased from approximately 20% to 51% in 2021.

We set-up a data project to look at the patterns in how people interact and communicate with us. We found that younger applicants use websites less and prefer using their mobile device and apps. In November 2021 we launched the LTC App, a condensed version of the website that gives instant access to our support and heavily promotes the helpline. In November and December, 513 people downloaded the App. We were very pleased with these results and that number continues to increase in 2022.

We did not expect the number of people we helped in 2021 to be as high as 2020 for obvious reasons. We helped 46,626 people, double the amount of people that we supported in 2019 at 23,030.

Within those figures we helped 623 people with housing issues, 803 people with money issues (this included short term hardship grants) and 98 families with an educational grant.

We awarded a total of £1,024,188 in grant awards and an extra £215,254 in support provided via the partnerships we have formed during 2020-2021 including: -

Shelter Renovo Relate Care First CPL Training Nudge (financial well-being) Law Express Create Results (coaching support) HJUK (Hospitality job partner)

The Fire Fighters Charity (physical health well-being) Anchor Hanover Housing

We also partnered with Greene King to launch and deliver their second Team Member Support Fund to award emergency COVID-19 grants for their people. We awarded 2,259 families a small grant funded by Greene King amounting to £438,792. At the time of writing, we are working with Greene King to deliver a longer-term fund for employees who have worked for them for 6 months or more.

During 2021, we awarded 23 licensed trade pupils with a bursary to attend our school LVS Ascot. These pupils were given an additional grant to supply them with laptops to support home schooling due to COVID-19.

In November 2021 we celebrated winning the ACO (Association of Charitable Organisations) 2021 Charity of the Year award (£5million + income). The award recognised our work during COVID-19. We were delighted to have been recognised in this way, and having scoured our records, believe this to be the first award that Licensed Trade Charity has won.

In the same month Carolyn Jenkinson was awarded ‘Companion of the BII’ to recognise the work that LTC had done to increase awareness within the Leased and Tenanted side of the industry. November was a fantastic month for us.

While 2021 was a challenging year for all, we were able to fast forward the introduction of new support services and our plans to streamline our process. The ‘need’ created across the sector by COVID-19 supported our efforts to raise awareness and reach more people whom we could help.

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Sector achievement in 2021

Volunteering in 2021

2021 was a very different year for the large majority of our Volunteers. The only team largely unaffected were our Telephone Befrienders who continued to call their Befriendees, although for some their conversations weren’t as regular as usual due to people being too unwell because of COVID-19 or too busy caring for children, grandchildren or sick relatives to make or receive their usual calls.

Our Volunteers play an important role in supporting and promoting the Licensed Trade Charity’s work, reaching out to the community and helping deliver a holistic service for the people we support. They continued to do this as much as they could virtually or by phone. Most of our Volunteers have a history in the licensed hospitality trade in various guises from Licensee to Owner/Director, giving them valuable insight into the rewards and challenges a career in the licensed trade offers.

We have five categories of Volunteers:

Trustees

Our Charity’s Trustees play a vital role in decisions that shape the future direction of the Charity, donating their time to attend Trustee and Committee meetings and sharing their skills and experience. During 2021, the large majority of these were conducted virtually, to keep people safe whilst still being able to give their much-needed input.

All Committee meetings continued to take place virtually, and the Trustees managed to hold three of their meetings in person from September onwards. Our AGM in October was held in person and two new Trustees were elected, George Wishart and Ajith Jayawickrema. Eric Morgan, who had been a Trustee, the Executive Chair of the Charity Services Committee and supporter of the Charity for decades, sadly passed away in December after a period of ill health.

At the time of writing, we are also sad to share the loss of two more life-long and valued supporters, Barbara Williams and Jeff Booth, our thoughts are with their loved ones.

Charity Services Volunteers

Telephone Befrienders

Charity Ambassadors

Regional Fundraisers

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Our Charity Services Volunteers continued to call applicants whose cases were complex and where a deeper understanding of their situation was needed. Most applications were more straightforward and for those needing grants of up to £1,500, our Charity Services Advisors were able to get the information they needed directly from the applicants themselves in order to make a decision in the office.

We trained four new people to join the Volunteer team, in the hope that we’d be able to get the whole team back out and visiting people again. That is now happening in 2022.

Our Telephone Befrienders continued to call people throughout the year and for most, both the Befriendee and the Befriender found this a lifeline during the lockdown periods, especially those who live on their own. For some, the Volunteer would be the only person they would speak to in a week.

As there were no events or exhibitions for us to attend during 2021, our Charity Ambassadors were unable to go out and about to help promote us. However, they, and we, are excited that 2022’s calendar is looking extremely busy and we will be needing their help to man stands at the various events around the country.

We still have six people who are yet to complete training and hope to be able to do that during 2022. With those six we will have a team of Volunteers that cover the whole country.

We sadly lost the South West Regional Fundraising Committee due to COVID-19 and dwindling numbers, taking the number of Regional Fundraising Committees down to six. The Committees started meeting again when they were finally able to and began planning their fundraising events for 2022.

As the country opened up in 2022, our Volunteers have been as keen and as excited as we are to get back out there, doing what they love best and sharing our passion for helping and supporting people in the industry who find themselves down on their luck. We are incredibly grateful that they have remained committed to us and we look forward to seeing them all again in person at various times throughout the year.

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Financial review

The full financial results for the year are dealt with in the Statement of Financial Activities on page 39.

Financial performance compared with the previous year

2021 results show a significant turnaround from 2020. 2020 was greatly impacted by the COVID-19 pandemic across almost all areas of the Charity’s finances, culminating in a deficit of £2,226k. Whilst the impact of the pandemic has still been felt strongly this year, particularly in our charitable activities and in the operation of LVS Ascot, the Executive and senior management teams have, with the unwavering support of the Trustees, implemented a series of strategies to return the operating units of the Charity to delivering a financial surplus. The net surplus, after gains on investments, income from an associate company, and actuarial gains on defined benefit pension schemes, is £6,526k for 2021, an improvement of £8,752k on last year.

The Charity’s net income, after charitable donations and before changes in the value of investments, is a surplus of £857k, compared to a deficit in 2020 of £1,634k.

Net income from the schools, which had 919 pupils, a decrease of 20 pupils when compared to the previous year, was £3,186k higher due to the fee remissions granted last year and strong cost control employed across the organisation throughout 2021.

Net investment income was £533k, £9k lower than last year following a small reduction in distributions received.

Profit from the subsidiary, Elvian Limited, was £161k, an increase of £110k due to partial easing of the COVID-19 restrictions which enabled some letting of school facilities although travel restrictions continued to prevent the hosting of international students during the summer.

Fundraising reduced considerably this year to £636k, from the record level in 2020 of £1,284k. Whilst this was expected in line with the lessening impact of the COVID-19 pandemic, with less time spent under lockdown than in 2020, the Charity was extremely grateful to continue to receive very generous corporate donations which enabled us to continue provide support across the licensed trade during what continued to be a very difficult environment.

The Charity’s investments performed very strongly during 2021, recording net gains of £3,268k compared to a net gain of £459k in 2020. This was comprised of gains of £1,420k on commercial paper investments and £1,848k on property funds. Residential property holdings have been held at their 2020 valuations.

Actuarial gain on defined benefit pension schemes resulted in a credit of £2,358k in the year, compared to a charge of £1,154k in 2020. The gain this year was in part due to an additional cash contribution of £500k made to the LTC 1967 scheme in February 2021.

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Financial performance compared with expectations for the year

The surplus of £6,526k is £6,873k better than the budgeted deficit of £347k.

No gain nor loss was budgeted for Investment or Pension Liability revaluations, which contributed £3,268k and £2,358k respectively to the overperformance against budget. At an operating surplus level, the result was £1,204k better than budget.

Net income from the schools overall was £460k ahead of budget, in spite of further unbudgeted COVID-19 fee remissions of £325k being granted at LVS Ascot. This result was due to careful cost management across all three schools, and strong pupil numbers particularly at LVS Hassocks and LVS Oxford.

Central costs were £739k lower than planned due to the deferral of certain projects to 2022 and beyond whilst the Charity continues to navigate through the challenges presented by COVID-19, and a smaller amount of cost savings through continuance of hybrid working arrangements for both employees and Trustees.

Fundraising income was £282k higher than budget primarily due to continued COVID-19 hardship restricted donations from corporations within the industry during the third national lockdown and beyond.

Whilst Charity Services’ costs were £250k lower than budgeted, the Charity has continued to help a significant number of people in our industry, and is well placed to continue to do so as increases in the cost of living start to have a very real impact on people’s finances.

Reserves policy

The financial statements show that at 31 December 2021, the unrestricted funds totalled £68,914k and restricted funds £373k. The unrestricted reserves include a funding deficit of £1,543k calculated under FRS102 in respect of the notional funding deficit on the defined benefit pension plan for Charity staff. The Trustees believe that this notional funding calculation, which can vary between surplus and deficit, depending upon the assumptions used at year end, will have no material effect on the Charity’s cash flows in the short term and that in the longer term its effects are manageable out of future income.

The Charity is an operational organisation and needs to hold sufficient reserves to fund its current operations, to provide for unforeseen events and to invest for the future. It also needs to sustain sufficient reserves to provide long-term support for its beneficiaries. The Trustees have developed the reserves policy with regard to the Charity Commission’s guidelines. In the short-term, the Charity expects to fund the excess of charitable expenditure over income out of reserves. In the long-term, it is anticipated that the Charity will aim to hold a level of general reserves equivalent to 18 months operating expenditure, equating to approximately £35m.

The reserves policy is reviewed with the strategic plan to ensure they are consistent. In order to make a judgement on the reserves which should be held by the Charity, the Trustees have considered the risks in respect of expenditure, unrestricted income and where funds can only be released by the disposal of investments. The Trustees have also considered external identified potential risks to income and expenditure. The policy is monitored and reviewed annually.

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Following the strong financial performance in 2021, the Charity’s general reserves, defined as unrestricted reserves excluding fixed assets, directly owned investment property and the equity investment in the Morning Advertiser, have increased to £32m. This equates to just under 18 months’ operating expenditure, which compares to £25m, or just over 12 months’ operating expenditure at the end of 2020. 2022 is expected to see continued impacts of COVID-19 on both the licensed trade and on the education environment as Government and other support measures end, together with wide-ranging impacts from increasing cost of living and the war in Ukraine. In light of this the Charity may need to draw on its reserves in 2022. The Charity would then seek to maintain its reserves in line with the requirements of its strategic plan.

The Charity reviews the finances of beneficiaries before approving the payment of grants to individuals. Historically, once a beneficiary reached 80 years of age, the Charity no longer performed an annual review of the beneficiary’s finances and continued to pay the awarded grant until the beneficiary died. This practice has now stopped and the finances of all beneficiaries are reviewed annually. Where the annual means testing has previously ceased, the Trustees have accepted that payment will be made until the death of the beneficiary and have, therefore, designated funds equivalent to the estimated value of these future payments in the financial statements. At 31 December 2021 the value of this designated fund was £195,667.

Investment policy and objectives

The Trustees have reviewed their Investment policy with regard to the Charity Commission’s guidance on social, ethical and responsible investment.

The Charity’s assets should be invested in line with its aims. The Trustees do not wish to adopt an exclusionary policy, but individual investments may be excluded if perceived to conflict with the Charity’s purposes.

The investment strategy is set out in the governance handbook and is consistent with the cash flow requirements of the current strategic plan.

The Charity seeks to produce the best financial return within an acceptable level of risk. The investment objectives are to generate a sustainable income stream which at least maintains both its real value in future years and the real capital value of the investment portfolio over the long term.

The Charity seeks to have a constructive and positive engagement with the corporate world and requires that Investment Managers, together with all underlying collective holdings, have signed up, or are in the process of signing up to the United Nations-supported, Principles for Responsible Investment (PRI) Initiative.

No changes have been made to the structure of the Charity’s investments during 2021. Property investments were 44% of the Charity’s total investment portfolio at the end of the year (2020: 43%).

The performance for 2021 resulted in an overall gain of £3,268k, including a gain on both commercial paper and property funds. The value of directly owned investment properties remains unchanged from 31 December 2020.

Property fund investments total 33% (2020: 31%) of the portfolio, comprising investments in Mayfair Capital, Schroders, CCLA and Savills. All funds performed well during 2021, increasing in value between 10% and 16% from December 2020 values.

Directly owned property amounts to 11% (2020: 12%) of the portfolio, including land and residential properties. The portfolio was professionally valued during 2020 and continues to be held at those values.

Commercial paper investments, including equity, gilts and alternative investments are actively managed for the Charity by SG Kleinwort Hambros Bank and CCLA. These total 56% (2020: 57%) of the total portfolio and generated a gain of £1,420k.

During 2021, an Investment subcommittee of the Trustee Body was formed in order to increase governance and to review the investment portfolio in line with the strategic plan and funding needs of the Charity.

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Pensions

The Charity contributes to two defined benefit schemes, one, a national Government-operated scheme for teaching staff, and the other, its own scheme, for non-teaching staff.

The Charity has no control over the national scheme but has continued to pay increased contributions into its own scheme. The Government increased employer contributions for the teachers’ pension scheme from 16.48% to 23.68% in September 2019.

The Charity is subject to the automatic enrolment legislation introduced by the Government to encourage staff to save for their retirement. All employees not currently in one of the schemes mentioned above, were automatically enrolled into a group personal pension plan in May 2014. Those that had subsequently opted out of the scheme were automatically re-enrolled in February 2017 and were re-enrolled once again in April 2020.

All new employees have the option to join the appropriate final salary scheme. If they fail to do so, they are automatically enrolled into the group pension scheme, if eligible.

Tax status

The Trustees are of the opinion that the Charity is not liable for taxation on its charitable activities.

Plans for the future

Expectations for 2022

The Charity expects that 2022 will be a year of uncertainty. Whilst the restrictions imposed on our lives as a result of COVID-19 have been almost entirely lifted, at least in the UK, there still remains risk that infection levels may increase once again and restrictions may need to be reimposed. Even if that risk does not materialise, international travel remains less straightforward than it was pre-pandemic, which continues to suppress international boarding numbers at LVS Ascot.

As many of the support packages made available by Government and the private sector during the pandemic are removed, many businesses and individuals in the licensed trade and the general population find their finances under increasing strain. This is of course being exacerbated by increasing costs of living, and the Russian invasion of Ukraine has introduced another level of unforeseen uncertainty.

All of these factors are expected to have an impact on the Charity’s finances, either by increasing demand from beneficiaries for emotional, practical and financial support, and by adversely affecting recruitment and retention of pupils particularly at LVS Ascot.

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The Charity finalised its budget for 2022 in November 2021, which projected a small operating surplus. This may be adversely affected by the factors set out above, and furthermore the uncertainty introduced into the financial markets by the war in Ukraine may result in adverse revaluations in both the Charity’s investments and in the valuation of the LTC 1967 pension scheme deficit.

The strategic plan

The Charity’s Strategic plan 2017-2021 will continue for a further two years, supported with a two year plan for recovery from the effects of the COVID-19 pandemic. During the second half of 2022, the Charity will commence work on a new Strategic plan. This will be produced involving staff, Trustees and externally benchmarking the Charity, in order to determine the direction of travel of the Charity for a further five years.

The Charity’s existing five-year strategic plan commenced in 2017 and progress is reviewed annually. When setting the plan, the Charity was very clear in reviewing the potential areas for expansion and a quest to deliver more services in line with the recent changes in the organisation’s objects. This allows for the provision of education to a wider population, to the general public but with preference to those having worked or still working in the licensed trade and now to any age group. Whilst the Charity can provide residential care to the general public but with preference to the trade, it was decided not to pursue this.

The Charity set a target to assist in a number of ways and aimed to help around 13,000 individuals by the year 2021. Through the pandemic, the Charity’s marketing, communication and engagement plan has been so successful that the Charity assisted over 73,000 individuals during 2020 and nearly 47,000 during 2021.

Whilst the organisation will continue to invest in its material assets, further investment in the recruitment and development of staff will be at the forefront, to ensure the increasing demands placed on the organisation can be achieved and that beneficiaries’ and customers’ expectations can be met.

The Charity continues to build on the work done during the COVID-19 pandemic to accelerate automation, to improve efficiency and to optimise ways of working which will allow the organisation to evolve to meet the changing needs of its beneficiaries and pupils.

Risk management

The Trustees are responsible for the management of the risks faced by the Charity and have examined the major strategic, business and operational risks to which the organisation is and may potentially be exposed. The Trustees are satisfied that the systems, controls and policies are in place to mitigate and manage exposure to such major risks.

The Charity’s comprehensive risk register is reviewed and updated annually, or more regularly if necessary, prior to review and discussion by the Trustees. In assessing the risks, the impact on Charity activity disruption, injury or property damage, loss of income, reputation, management focus, missed opportunity and strategic direction change are all considered.

There are four principal areas of risk as well as COVID-19 which have the potential to significantly affect the operations of the Charity:

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

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Licensed Trade Charity Trustees’ Report and Financial Statements 2021

34

Trustees’ responsibility statement

The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Charity. These records also allow the Trustees to make sure the financial statements comply with the requirements of the Charities Act 2011.

Charity law also requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Charity and of the results for that period.

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

Auditor

James Cowper Kreston offers itself for reappointment as auditor for the year beginning 1 January 2022.

Approval of the financial statements

The Trustees confirm this report and accounts comply with the requirements of the Charities Act 2011 and the Charities SORP (FRS102).

The Trustee Body approves the financial statements.

BY ORDER OF THE TRUSTEE BODY

Mr Michael Hill

Chairman of Trustees Dated: 9th June 2022

The Trustees are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

35

LICENSED TRADE CHARITY

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF LICENSED TRADE CHARITY

Opinion

We have audited the financial statements of Licensed Trade Charity (the 'parent charity’) and its subsidiary (the 'Group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

36 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF LICENSED TRADE CHARITY

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Part 4 of the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement, 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 Group's and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

37

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF LICENSED TRADE CHARITY

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s members 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

James Cowper Kreston Chartered Accountants and Statutory Auditor

Reading Bridge House, George Street, Reading, Berkshire, RG1 8LS

Date: 9th June 2022

James Cowper Kreston is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

38 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Restricted
funds
2021
Note
£
INCOME FROM:
Donations and legacies
4
544,754
Charitable activities:
School fees
-
Grants
-
Other trading activities:
Fundraising and events income
5
-
Gross income trading subsidiaries
2
-
Investments
6
-
Other income
7
-
TOTAL
544,754
EXPENDITURE ON:
Raising funds:
Costs of generating voluntary income
8
-
Expenditure trading subsidiaries
2
-
Investment management costs
10
-
Cost of events
9
-
Charitable activities:
Schools
11
58,634
Grants
455,418
Bursaries
-
Charity Services
12
-
Support costs
13
-
14
514,052
30,702
16
-
30,702
3
-
-
30,702
342,412
TOTAL
NET INCOME/(EXPENDITURE) BEFORE
NET GAINS ON INVESTMENTS
Net gains on investments
NET INCOME/(EXPENDITURE)
Income from associate company
Actuarial gains / (losses) on defined benefit
pension schemes
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 1 JANUARY
TOTAL FUNDS AT 31 DECEMBER
373,114		 Restricted
funds
2021
Note
£
INCOME FROM:
Donations and legacies
4
544,754
Charitable activities:
School fees
-
Grants
-
Other trading activities:
Fundraising and events income
5
-
Gross income trading subsidiaries
2
-
Investments
6
-
Other income
7
-
TOTAL
544,754
EXPENDITURE ON:
Raising funds:
Costs of generating voluntary income
8
-
Expenditure trading subsidiaries
2
-
Investment management costs
10
-
Cost of events
9
-
Charitable activities:
Schools
11
58,634
Grants
455,418
Bursaries
-
Charity Services
12
-
Support costs
13
-
14
514,052
30,702
16
-
30,702
3
-
-
30,702
342,412
TOTAL
NET INCOME/(EXPENDITURE) BEFORE
NET GAINS ON INVESTMENTS
Net gains on investments
NET INCOME/(EXPENDITURE)
Income from associate company
Actuarial gains / (losses) on defined benefit
pension schemes
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 1 JANUARY
TOTAL FUNDS AT 31 DECEMBER
373,114		 Unrestricted
funds
2021
£
84,685
20,918,153
21,104
7,031
400,320
1,089,769
306,018		 Total
funds
2021
£
629,439
20,918,153
21,104
7,031
400,320
1,089,769
306,018		 Total
funds
2020
£
1,253,833
18,059,660
76,864
30,541
243,706
1,107,085
771,440
544,754 22,827,080 23,371,834 21,543,129
-
-
-
-
58,634
455,418
-
-
-		 158,285
239,426
556,373
78,338
18,776,517
568,770
362,188
816,486
444,741		 158,285
239,426
556,373
78,338
18,835,151
1,024,188
362,188
816,486
444,741		 141,998
192,614
565,206
47,907
19,162,388
1,561,033
301,115
828,593
376,160
514,052 22,001,124 22,515,176 23,177,014
30,702
-		 825,956
3,268,408		 856,658
3,268,408		 (1,633,885)
458,816
30,702
-
-		 4,094,364
42,950
2,358,000		 4,125,066
42,950
2,358,000		 (1,175,069)
103,059
(1,154,000)
30,702
342,412		 6,495,314
62,418,202		 6,526,016
62,760,614		 (2,226,010)
64,986,624
373,114 68,913,516 69,286,630 62,760,614

All activities relate to continuing operations. The notes on pages 43 to 62 form part of these financial statements.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

39

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021

2021 2020
Note £ £ £ £
FIXED ASSETS
Tangible assets 17 30,670,307 31,784,761
Investments at market value 20 44,601,514 41,480,673
Investment in associate company 18 1,308,501 1,265,551
76,580,322 74,530,985
CURRENT ASSETS
Debtors 21 4,983,499 4,464,176
Cash at bank 5,795,671 4,958,918
10,779,170 9,423,094
CREDITORS:Amounts falling due within
one year 22 (9,937,321) (10,265,331)
NET CURRENT ASSETS / (LIABILITIES) 841,849 (842,237)
TOTAL ASSETS LESS CURRENT LIABILITIES 77,422,171 73,688,748
CREDITORS:amounts falling due after
more than one year 23 (6,592,541) (7,012,134)
NET ASSETS EXCLUDING PENSION
SCHEME LIABILITIES 70,829,630 66,676,614
Defined benefit pension scheme
liability 27 (1,543,000) (3,916,000)
NET ASSETS INCLUDING PENSION
SCHEME LIABILITIES 69,286,630 62,760,614
CHARITY FUNDS
Restricted funds 24 373,114 342,412
Unrestricted funds: 24
Unrestricted funds excluding
pension liability 70,456,516 66,334,202
Pension reserve (1,543,000) (3,916,000)
Total unrestricted funds 68,913,516 62,418,202
TOTAL FUNDS 69,286,630 62,760,614

The financial statements were approved by the Trustees on 9th June, 2022 and signed on their behalf by:

………………………………………………

Mr Michael Hill

The notes on pages 43 to 62 form part of these financial statements.

40 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021

2021 2020
Note £ £ £ £
FIXED ASSETS
Tangible assets 17 30,670,307 31,784,761
Investment in subsidiary 19 5,000 5,000
Investments at market value 20 44,601,514 41,480,673
Investment in associate company 18 500,025 500,025
75,776,846 73,770,459
CURRENT ASSETS
Debtors 21 5,404,579 4,574,215
Cash at bank 5,349,307 4,825,654
10,753,886 9,399,869
CREDITORS:amounts falling due
within one year 22 (9,917,038) (10,247,106)
NET CURRENT ASSETS / (LIABILITIES) 836,848 (847,237)
TOTAL ASSETS LESS CURRENT LIABILITIES 76,613,694 72,923,222
CREDITORS:amounts falling due after
more than one year 23 (6,592,541) (7,012,134)
NET ASSETS EXCLUDING PENSION
SCHEME LIABILITIES 70,021,153 65,911,088
Defined benefit pension scheme
liability 27 (1,543,000) (3,916,000)
NET ASSETS INCLUDING PENSION
SCHEME LIABILITIES 68,478,153 61,995,088
CHARITY FUNDS
Restricted funds 24 373,114 342,412
Unrestricted funds:
Unrestricted funds excluding
pension liability 69,648,039 65,568,676
Pension reserve (1,543,000) (3,916,000)
Total unrestricted funds 68,105,039 61,652,676
TOTAL FUNDS 68,478,153 61,995,088

The financial statements were approved by the Trustees on 9th June, 2022 and signed on their behalf by:

……………………………………………… Mr Michael Hill

The notes on pages 43 to 62 form part of these financial statements.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

41

CONSOLIDATED CASH FLOW STATEMENT AS AT 31 DECEMBER 2021

Note
NET CASH PROVIDED BY OPERATIONS
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interest and rents from investments
Purchase of fixed assets
17
Proceeds from the sale of fixed assets
Purchase of investments
20
Proceeds from the sale of investments
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of loans
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
NET MOVEMENT IN FUNDS
Adjustments for:
Dividends, interest and rents from investments
Depreciation charges
17
Loss on disposal of fixed assets
Fair value gains made on investments
Increase in debtors
21
(Decrease)/Increase in creditors
22
(Decrease)/Increase in provision for defined benefit pension scheme
Income from associate company
3
NET CASH PROVIDED BY OPERATIONS		 2021
£
1,159,513
1,089,769
(979,173)
7,740
(7,435,755)
7,583,322
265,903
(588,663)
(588,663)
836,753
4,958,918
5,795,671
6,526,016
(1,089,769)
1,967,377
118,510
(3,268,408)
(519,323)
(158,940)
(2,373,000)
(42,950)
1,159,513		 2020
£
286,631
1,107,085
(870,834)
-
(6,026,975)
7,209,448
1,418,724
(566,618)
(566,618)
1,138,737
3,820,181
4,958,918
(2,226,010)
(1,107,085)
1,947,194
876,419
(458,816)
(3,177,582)
3,086,570
1,449,000
(103,059)
286,631

The notes on pages 43 to 62 form part of these financial statements.

42 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 . ACCOUNTING POLICIES

Licensed Trade Charity is an unincorporated charity. It is registered in England and Wales with Charity Registered number 230011. The principal address of the Charity is Heatherley, London Road, Ascot, Berkshire, SL5 8DR.

1.1 Basis of Accounting

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second edition issued on 1 January 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

These provisions mean that the consolidated financial statements have been prepared to aggregate the Charity together with its trading subsidiary, Elvian Limited.

The Charity constitutes a public benefit entity as defined by FRS 102.

1.2 Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Tangible Fixed Assets ( see note 17 )

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values may vary depending upon the type of asset and its use and management use historic experience to assess these factors.

Pension Commitments ( see note 27 )

Various assumptions are made in reporting the performance of the Charity's pension scheme. A valuation is carried out for reporting purposes by a qualified independent actuary. The principal actuarial assumptions made are disclosed in note 27.

Investment properties ( see note 20 )

Residential investment property valuations are made annually by management, based upon external indications of value and consideration of market conditions. Commercial investment properties are valued annually by qualified independent Chartered Surveyors.

1.3 Basis of Consolidation

The Licensee & Morning Advertiser and the assets of the Pub, Club and Leisure Show Limited were incorporated into The Morning Advertiser Limited (MA Ltd) in January 2000. At that time the Charity owned £75 shares and William Reed Holdings Limited owned £25 shares. The financial statements of MA Ltd were consolidated into William Reed Holdings Limited financial statements as a subsidiary since it had a majority representation on the Board of Directors. The Charity's investment was shown as an investment in a joint venture.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

43

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 . ACCOUNTING POLICIES (continued)

1.3 Basis of Consolidation (continued)

In March 2002, William Reed Holdings Limited bought £50 of the Charity's shares and the Charity became a minority shareholder with a 25% shareholding.

Under the Charities SORP (FRS102), the Charity treats MA Ltd as an associate company in its financial statements (see note 3) and consolidates that percentage of its shareholding (25%) of its income and expenditure into its Consolidated Statement of Financial Activities. The MA Ltd's year end is 31 March and so unaudited management accounts have been taken for the company's financial year. The Charity's investment is shown as an investment in an associate company (see note 18).

1.4 Going Concern

The Trustees have considered the impact of both the COVID-19 pandemic and the Russian invasion of Ukraine on the ability of the Group to continue trading for the foreseeable future. This review has included considering the impact of both situations to the date of signing the financial statements and updating financial projections in respect of income and expenses. Based on this review and taken together with existing group financing facilities the Trustees believe that the financial statements have been prepared appropriately on the going concern basis.

1.5 Fund Accounting

The Charity's funds consist of general funds which the Charity may use for its purposes at its discretion. When donors indicate that an amount is for a specific purpose, such amounts are treated as restricted funds.

1.6 Donation Income

Donation income is accounted for on a cash received basis.

1.7 Gift Aid

Voluntary income by way of gift aid is credited in the year it is receivable. Corporate gift aid is received gross of tax, but the Charity is able to recover basic rate income tax from UK individual tax payers and such gift aid donations are shown gross of the relevant credit.

1.8 Income from Investments

Investment income comprises dividends received during the accounting period and interest received on listed and unlisted investments.

1.9 School Fees

School fees are accounted for in the period to which they relate and are shown gross, including bursaries paid by the Charity, in the Statement of Financial Activities.

1.10 Government Grants

Government Grants relating to the Coronavirus Job Retention Scheme included within other income are recognised as receivable in the period in which the corresponding the expense has been incurred.

44 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 . ACCOUNTING POLICIES (continued)

1.11 Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

School Buildings - at 2.00% on cost Building Improvements - at various rates between 6.67% and 20% Motor Vehicles - at 25.00% on cost Furniture & Fittings - at various rates between 6.67% and 20% IT Equipment - at 33.33% on cost Land - not depreciated

A project is underway to separately disclose Building Improvements in the accounts for the year ended 31 December 2022.

Items costing less than £1,000 are written off as an expense when acquired.

1.12 Allocation of Central Support Costs

Central costs are allocated between the following categories: Investments, Schools, Fundraising, Event costs, Charity Services, Subsidiary and Support (including governance costs).

The method of allocation for costs, which cannot be specifically allocated to each category, is based on the time spent on each category by each management function. Allocations for the year ending 31 December 2021 are as follows:-

Type of expense Management Professional Establishment Other Total
Method of allocation Time Usage Usage Per capita
Functions £000's £000's £000's £000's £000's
Investments
Schools
Generating Voluntary Income
Events
Charity Services
Subsidiary
Support		 83
318
75
58
531
23
241		 224
79
12
9
84
8
99		 1
10
1
-
3
1
2		 248
347
70
11
198
19
103		 556
754
158
78
816
51
445
Total 1,329 515 18 996 2,858

Support costs comprise the costs of running the Charity including strategic planning, internal and external audit, legal advice, Trustees expenses and all of the costs of complying with statutory requirements such as the preparation of statutory financial statements and meetings of the Trustee Body and its sub committees (note 13).

Charity Services costs comprise staff and other costs incurred in helping those in need including advising on their qualification for state benefits, preparing their cases for submission to the Charity Services committee, giving emotional support and arranging payments for agreed grants.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

45

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 . ACCOUNTING POLICIES (continued)

1.13 Pension Costs

Teaching staff employed by the Licensed Trade Charity are eligible for membership of the Teachers' Pension Scheme, which is a national statutory contributory, defined benefit scheme administered by the Teachers' Pension Scheme, an agency of the Department for Education. Pension costs are assessed in accordance with the advice of the Government Actuary. Although this is a multi-employer scheme whose assets and liabilities are not separately identifiable, under the Charities SORP (FRS 102) it is treated as a defined contribution scheme with a charge to the accounts for the contributions paid and relevant disclosures about the scheme as a whole provided in note 27.

In addition, the Charity operates a defined benefit pension scheme for its non-teaching staff. This is funded by contributions at rates determined by independent, qualified actuaries. These contributions are invested separately from the Charity's assets and are charged to the Statement of Financial Activities and relevant disclosures about the scheme are provided in note 27.

The Charity is subject to the automatic enrolment legislation. All eligible employees of the Charity that do not join the appropriate final salary scheme are automatically enrolled into a group pension plan, with employer pension contributions charged to the Statement of Financial Activities in the year in which they arise.

1.14 Investments

Listed investments

Investments are included in the financial statements at mid-market value as at the year end. Realised and unrealised gains and losses are recognised as they arise and are included separately in the Statement of Financial Activities.

Investment in Associate

As at 31st December 2021, the Charity holds a minority shareholding in an associate company, The Morning Advertiser Limited. The share of the associate's profits are shown as income from associate in the Consolidated Statement of Financial Activities.

The Charity's interest is recorded as follows:

In the Consolidated Balance Sheet, shares at cost and minority reserves accumulated to date. In the Charity's Balance Sheet, the cost of the shares in the associated company is shown.

1.15 Investment Properties

Investment properties are stated at open-market valuation. Realised and unrealised gains and losses are recognised as they arise and are included separately in the Statement of Financial Activities.

1.16 Stocks

School books and other teaching materials are written off in the year of acquisition.

1.17 Debtors

Trade debtors, other debtors and prepayments are recognised at their settlement amount.

46 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 . ACCOUNTING POLICIES (continued)

1.18 Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

1.19 Advance Fee Plan Scheme payments

Amounts received under the school's advance fee plan scheme which have not been used to settle school fees are recognised as deferred income within current liabilities where education will be provided within one year of the reporting date and within non-current liabilities where education will be provided in subsequent years.

1.20 Financial Instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments The basic instruments are held at amortised cost and at fair value (note 31).

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

47

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2 . NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARIES

The Charity has one wholly owned trading subsidiary, Elvian Limited. Elvian Limited pays its taxable profits to the Charity under a deed of covenant and its audited financial statements are filed with the Registrar of Companies. The Company has not recognised a corporation tax charge in the year as taxable profits will be distributed in full to the parent charity within nine months of the year end and charitable donations relief will be claimed under Part 6 (s189) of the Corporation Tax Act 2010 .

Elvian Limited's audited results are as follows:

Profit and Loss Account
Turnover
Cost of sales
Gross profit
Administration costs
Net profit
Profit gifted to parent charity under deed of covenant
Profit retained in subsidiary		 2021
£
400,320
(86,356)
313,964
(153,070)
160,894
(160,894)
-		 2020
£
243,706
(81,769)
161,937
(110,845)
51,092
(51,092)
-

3 . NET INCOME FROM TRADING ACTIVITIES OF ASSOCIATE COMPANY

The Charity has a 25% shareholding in The Morning Advertiser Limited (MA Ltd). The principal activity of this company is the publication of a fortnightly trade journal "The Morning Advertiser" which the Charity had managed for 200 years before transferring its management to William Reed Publishing Ltd in 2000.

The Morning Advertiser Limited's unaudited results are as follows:

Revenue
Cost of sales
Gross profit
Overhead costs
Profit for the year
Reserves brought forward
Dividend paid in year
Reserves carried forward		 2021
£
1,441,571
(990,815)
450,756
(278,956)
171,800
5,062,204
-
5,234,004		 2020
£
2,268,245
(942,972)
1,325,273
(913,033)
412,240
4,649,964
-
5,062,204

The Charity's share of the total profit for the year resulting from its investment in MA Ltd is £42,950 (2020: £103,059). No dividend income was received from MA Ltd during the year.

48 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4 . DONATIONS AND LEGACIES

Donations Restricted
Funds
2021
£
544,754		 Unrestricted
Funds
2021
£
84,685		 Total
Funds
2021
£
629,439		 Total
Funds
2020
£
1,253,833

In 2020, of the donations and legacies income, £1,155,684 related to restricted Funds and £98,149 related to unrestricted Funds.

5 . FUNDRAISING AND EVENTS INCOME

Fundraising and events income Restricted
Funds
2021
£
-		 Unrestricted
Funds
2021
£
7,031		 Total
Funds
2021
£
7,031		 Total
Funds
2020
£
30,541

In 2020, all amounts related to unrestricted Funds.

6 . INVESTMENT INCOME

Rental income
Income from investments
Bank deposit interest		 Restricted
Funds
2021
£
-
-
-
-		 Unrestricted
Funds
2021
£
133,539
956,190
40
1,089,769		 Total
Funds
2021
£
133,539
956,190
40
1,089,769		 Total
Funds
2020
£
130,586
971,751
4,748
1,107,085

In 2020, all amounts related to unrestricted Funds.

7 . OTHER INCOME

Restricted
Funds
2021
£
Coronavirus job retention scheme
-
Other
-
-
In 2020, all amounts related to unrestricted Funds.
COSTS OF GENERATING VOLUNTARY INCOME
Restricted
Funds
2021
£
Staff costs
-
Administration and depreciation
-
-		 Unrestricted
Funds
2021
£
67,486
238,532
306,018
Unrestricted
Funds
2021
£
75,356
82,929
158,285		 Total
Funds
2021
£
67,486
238,532
306,018
Total
Funds
2021
£
75,356
82,929
158,285		 Total
Funds
2020
£
544,425
227,015
771,440
Total
Funds
2020
£
78,748
63,250
141,998

8 . COSTS OF GENERATING VOLUNTARY INCOME

In 2020, all amounts related to unrestricted Funds.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

49

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9 . COST OF EVENTS

COST OF EVENTS
Staff costs
Administration and depreciation		 Restricted
Funds
2021
£
-
-
-		 Unrestricted
Funds
2021
£
57,781
20,557
78,338		 Total
Funds
2021
£
57,781
20,557
78,338		 Total
Funds
2020
£
35,147
12,760
47,907

In 2020, all amounts related to unrestricted Funds.

10 . INVESTMENT MANAGEMENT COSTS

Investment advice
Property charges
Interest paid on loan for investments
Staff costs
Administration and depreciation		 Restricted
Funds
2021
£
-
-
-
-
-
-		 Unrestricted
Funds
2021
£
171,587
37,429
232,231
82,730
32,396
556,373		 Total
Funds
2021
£
171,587
37,429
232,231
82,730
32,396
556,373		 Total
Funds
2020
£
163,396
36,140
251,474
77,306
36,890
565,206

In 2020, all amounts related to unrestricted Funds.

11 . COST OF RUNNING SCHOOLS

Staff costs
Catering and cleaning
Establishment costs
Administration, loss on disposal and depreciation
Other costs		 Restricted
Funds
2021
£
-
-
-
57,834
800
58,634		 Unrestricted
Funds
2021
£
11,314,140
1,546,207
475,748
4,381,905
1,058,517
18,776,517		 Total
Funds
2021
£
11,314,140
1,546,207
475,748
4,439,739
1,059,317
18,835,151		 Total
Funds
2020
£
11,764,415
1,282,144
352,754
4,827,596
935,479
19,162,388

In 2020, of the cost of running schools, £69,032 related to restricted Funds and £19,093,356 related to unrestricted Funds.

50 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

12 . CHARITY SERVICES

Staff costs
Administration and depreciation		 Restricted
Funds
2021
£
-
-
-		 Unrestricted
Funds
2021
£
530,990
285,496
816,486		 Total
Funds
2021
£
530,990
285,496
816,486		 Total
Funds
2020
£
515,069
313,524
828,593

In 2020, £6,000 related to restricted Funds and £822,593 related to unrestricted Funds.

13 . SUPPORT COSTS

Governance costs
Auditor's remuneration
Auditor's remuneration - non audit
Other committee expenses
Trustees' allowances - chairman
Trustees' travel expenses
Other support costs
Legal and professional
Bank charges and interest
Staff costs
Administration and depreciation		 Restricted
Funds
2021
£
-		 Unrestricted
Funds
2021
£
26,760
3,174
3,559
1,590
14,951

62,730
429
239,887
91,661
444,741		 Total
Funds
2021
£
26,760
3,174
3,559
1,590
14,951
62,730
429
239,887
91,661
444,741		 Total
Funds
2020
£
27,036
5,514
3,066
765
10,625
48,818
655
225,242
54,439
376,160

In 2020, all amounts related to unrestricted Funds.

14 . TOTAL RESOURCES EXPENDED

School running costs
School support costs
Investment costs
Cost of trading subsidiary
Fundraising events
Support costs
Grants
Bursaries
Charity Services costs
Costs generating voluntary income		 Staff Costs
£
10,995,860
318,280
82,730
23,869
57,781
239,887
-
-
530,990
75,356
12,324,753		 Depreciation
£
1,759,851
116,923
6,908
8,209
4,825
20,031
-
-
44,338
6,292
1,967,377		 Other Costs
£
5,325,758
318,479
466,735
207,348
15,732
184,823
1,024,188
362,188
241,158
76,637
8,223,046		 2021
£
18,081,469
753,682
556,373
239,426
78,338
444,741
1,024,188
362,188
816,486
158,285
22,515,176		 2020
£
18,338,293
824,095
565,206
192,614
47,907
376,160
1,561,033
301,115
828,593
141,998
23,177,014

All grants are paid to individuals in line with our objectives.

15 . STAFF COSTS

Wages and salaries
Social security
Pension costs
Re-organisation costs
Other staff costs		 2021
£
9,005,396
884,843
1,996,524
28,795
409,195
12,324,753		 2020
£
9,652,554
935,008
1,483,992
188,985
442,151
12,702,690

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

51

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15 . STAFF COSTS (continued)

Employee emoluments 2021 2020
£ 60,000 - £ 70,000 5 5
£ 70,000 - £ 80,000 2 3
£ 80,000 - £ 90,000 1 1
£ 90,000 - £100,000 1 1
£100,000 - £110,000 2 3
£130,000 - £140,000 1 0
£150,000 - £160,000 1 1
£230,000 - £240,000 1 0
£240,000 - £250,000 0 1

Employee emoluments include remuneration and benefits-in-kind, as defined for taxation purposes. All the employees except for three in the above emolument bands are members of defined benefit pension schemes.

The Charity considers its key management personnel to comprise of the Trustees and the Chief Executive, Executive Director Education and Operations, Finance Director, HR Director, Director of SEN and Principal of LVS Ascot. The total employment benefits including employer national insurance and pension contributions of the key management personnel were £951,120 (2020: £947,714).

No Trustees received any remuneration in 2021 and 2020. During the year expenditure of £16,541 (2020: £11,390) was re-imbursed to or paid on behalf of nineteen Trustees.

The average number of employees analysed by function is as follows:

Direct charitable expenditure:
School
Other
Fundraising and publicity
Welfare
Management and administration		 2021
273
1
274
4
6
22
32
306		 2020
283
1
284
5
6
26
37
321

16 . REALISED AND UNREALISED INVESTMENT GAINS & LOSSES

Unrealised gains on investment revaluation
Realised gains/(losses) on sale of investments		 2021
£
1,566,765
1,701,643
3,268,408		 2020
£
3,085,786
(2,626,970)
458,816

52 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

17 . TANGIBLE FIXED ASSETS

Group
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
Charity
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Land and
Buildings
£
49,101,425
481,806
(247,388)
49,335,843
19,052,891
1,389,930
(180,997)
20,261,824
29,074,019
30,048,534
Land and
Buildings
£
49,101,425
481,806
(247,388)
49,335,843
19,052,891
1,389,930
(180,997)
20,261,824
29,074,019
30,048,534		 Motor
Vehicles
£
409,799
70,899
(107,713)
372,985
269,027
64,376
(79,927)
253,476
119,509
140,772
Motor
Vehicles
£
409,799
70,899
(107,713)
372,985
269,027
64,376
(79,927)
253,476
119,509
140,772		 Equipment, Fixtures
and Fittings
£
3,331,766
426,468
(145,599)
3,612,635
1,736,311
513,071
(113,526)
2,135,856
1,476,779
1,595,455
Equipment, Fixtures
and Fittings
£
3,331,766
426,468
(145,599)
3,612,635
1,736,311
513,071
(113,526)
2,135,856
1,476,779
1,595,455		 Total
£
52,842,990
979,173
(500,700)
53,321,463
21,058,229
1,967,377
(374,450)
22,651,156
30,670,307
31,784,761
Total
£
52,842,990
979,173
(500,700)
53,321,463
21,058,229
1,967,377
(374,450)
22,651,156
30,670,307
31,784,761

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

53

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18 . INVESTMENT IN ASSOCIATE COMPANY

In 2000, the Charity incorporated the assets of its publishing division The Licensee and Morning Advertiser and its trading company Pub, Club and Leisure Show Limited into The Morning Advertiser Limited.

The funding for the company was raised by the issue of shares and debentures. The shareholding at 31 December 2001 was £75 held by the Charity and £25 held by William Reed Holdings Limited.

In March 2002, William Reed Holdings Limited exercised its option to buy £50 of the Charity's shares in The Morning Advertiser Limited for £465,000 and both parties agreed to defer the maturity dates on their debentures from 2005 to 2010.

In March 2003, The Morning Advertiser Limited de-merged Pub, Club and Leisure Show Company Limited which has been dormant since its integration into The Morning Advertiser Limited and the Charity bought it for £1. The Pub, Club and Leisure Show Company Limited was dissolved on 21 August 2012.

Between 2001 and the rights issue in 2009, the losses incurred by The Morning Advertiser Limited were funded by the debentures and unsecured funding from William Reed Holdings Limited.

In 2009, shareholders decided to recapitalise The Morning Advertiser Limited by repaying its debentures and issuing a rights issue under the new percentage split of the shareholding. The Charity owned £404,813 of the debentures and its share of the £2 million rights issue was £500,000. The net payment into The Morning Advertiser Limited was therefore £95,117 with the Charity accepting £500,000 shares in exchange for surrendering £408,813 debentures. This has been used partly to finance The Morning Advertiser Limited and partly to repay the unsecured loan to William Reed Holdings Limited.

In the Consolidated Balance Sheet, the value of the Charity's investment in The Morning Advertiser Limited as at 31 December 2021 is represented by the cost of its shares of £500,025 and its minority share of reserves at 31 December 2021 of £808,476 totalling £1,308,501. In the Charity's Balance Sheet, only the cost of £500,025 is shown.

Initially the Trustees considered the venture with William Reed Holdings Limited to be a joint venture but following the disposal of their majority holding, now regard it as an associate company and adopt the treatment required by the Charities SORP (FRS102).

The Morning Advertiser Limited has a 31 March year end and therefore results shown in note 3 are based on management accounts and statutory financial statements information to bring them in line with the Charity's year end.

19 . INVESTMENT IN SUBSIDIARY

As detailed in note 2, the Charity is the parent company of Elvian Limited with a shareholding of £5,000.

54 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

20 . INVESTMENTS AND INVESTMENT PROPERTIES

2021
£
STOCK MARKET
The mid-market value of the investments were:
Details of cost are shown below:
At 1 January 2021
20,536,850
Additions
7,392,032
Disposals
(5,811,704)
At 31 December 2021
22,117,178
PROPERTY FUNDS
The mid-market value of the investments were:
Details of cost are shown below:
At 1 January 2021
12,939,892
Additions
-
Disposals
-
At 31 December 2021
12,939,892
TOTAL INVESTMENTS
INVESTMENT PROPERTIES
The mid-market value of the investments were:
Details of cost are shown below:
At 1 January 2021
2,050,771
Additions
43,723
Disposals
(69,975)
At 31 December 2021
2,024,519
TOTAL INVESTMENTS AND INVESTMENT PROPERTIES		 2021
£
24,950,771
14,818,243
39,769,014
4,832,500
44,601,514		 2020
£
23,678,431
12,969,742
36,648,173
4,832,500
41,480,673

All residential investment properties were professionally valued during the year to 31 December 2020, and their values have remained unchanged in the year to 31 December 2021.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

55

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21 . DEBTORS

DEBTORS
Trade debtors
Due from subsidiary
Other debtors
Prepayments		 2021
2020
£
£
3,781,028
3,414,427
-
-
249,516
183,616
952,955
866,133
4,983,499
4,464,176
Group		 Charity
2021
2020
£
£
3,760,612
3,404,830
442,472
130,634
248,540
183,616
952,955
855,135
5,404,579
4,574,215

Debtors include a loan of £47,647 (2020: £47,647) to the Hilda Webber Trust. This loan is to provide capital repairs to a property from which the Charity will benefit in the will, to which the Charity's Chief Executive is an Executor.

22 . CREDITORS

Amounts falling due within one year

Bank loans
Trade creditors
Due to subsidiary
Other taxation and social security
Other creditors and accruals
Deferred income		 2021
2020
£
£
608,742
588,959
448,939
478,379
-
-
254,681
250,158
2,113,414
2,415,185
6,511,545
6,532,650
9,937,321
10,265,331
Group		 Charity
2021
2020
£
£
608,742
588,959
448,939
478,379
-
-
254,681
250,158
2,093,131
2,396,960
6,511,545
6,532,650
9,917,038
10,247,106

23 . Amounts falling due after more than one year

Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Bank loans 6,007,584 6,616,030 6,007,584 6,616,030
Deferred income 584,957 396,104 584,957 396,104
6,592,541 7,012,134 6,592,541 7,012,134
Creditors include amounts not wholly repayable within 5 years as follows:
Group Charity
2021 2020 2021 2020
£ £ £ £
Repayable by instalments 6,007,584 6,616,030 6,007,584 6,616,030

56 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

23 . Amounts falling due after more than one year (continued)

The Allied Irish bank loan is secured on the Charity's Ascot site which represents 38% of the net book value of the property, which is included in the financial statements at £15,292,876. The Lloyds Bank loan is secured on the Charity's Hassocks site which represents 10% of the net book value of the property, which is included in the financial statements at £7,858,395.

Changes in the balance of deferred income are recognised in the Statement of Financial Activities during the year.

In July 2021 the Charity reduced its overdraft facility with SG Hambros from £5million to £1.5million. The facility, which is secured on the Charity's cash balances and investments held by SG Hambros, is in place for 12 months. The facility was not used during the year.

24 . SUMMARY OF FUNDS

General funds
Designated funds
Total unrestricted funds
Restricted funds		 Brought
Forward
£
62,188,432
229,770		 Incoming
Resources
£
22,827,080
-		 Resources
Expended
£
(22,001,124)
-		 Gains /
(Losses)
£
5,669,358
-		 Transfers
34,103
(34,103)		 Carried
Forward
£
68,717,849
195,667
62,418,202
342,412		 22,827,080
544,754		 (22,001,124)
(514,052)		 5,669,358
-
5,669,358		 -
-		 68,913,516
373,114
62,760,614 23,371,834 (22,515,176) - 69,286,630

Designated funds relate to amounts set aside by the Trustees for potential future payments to certain beneficiaries and does not meet the conditions to be recorded as a liability. During 2018 Sodexo made a capital investment of £399,000, which is being depreciated over the length of the contract.

2021
Hardship Fund 2
Hardship Fund 4
Hardship Fund 5
Hardship Fund 6
Grant 2
Grant 3
Grant 4
Welfare Grant
Scholarships
Ascot School
Hassocks School
Oxford School
Sodexo Capital grants
Oxford dining room		 B/f
£
21,238
794
-
-
6,805
15,000
-
-
5,333
-
-
5,962
287,280
-		 Income
£
500,000
-
1,000
5,000
-
15,000
1,000
10,000
-
2,600
100
100
-
9,954		 Expenditure
£
(438,792)
-
(970)
(4,656)
-
-
(1,000)
(10,000)
-
(600)
(100)
(100)
(47,880)
(9,954)
(514,052)		 Transfer to
unrestricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 C/f
£
82,446
794
30
344
6,805
30,000
-
-
5,333
2,000
-
5,962
239,400
-
342,412 544,754 - 373,114

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

57

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

24 . SUMMARY OF FUNDS (continued)

2020
Community Fund
Hardship Fund 1
Hardship Fund 2
Hardship Fund 3
Hardship Fund 4
Hardship Fund 5*
Grant 1
Grant 2
Grant 3
Welfare Grant
Scholarships
Ascot School
Hassocks School
Oxford School
Sodexo Capital grants
Oxford dining room		 B/f
£
-
-
-
-
-
-
-
3,242
-
-
-
-
-
-
335,160
-		 Income
£
150,000
250,000
668,881
4,489
20,500
19,500
24,464
21,900
15,000
10,000
8,000
9,290
369
7,700
-
9,955		 Expenditure
£
(150,000)
(217,813)
(647,643)
(4,489)
(19,706)
(19,500)
(24,464)
(18,337)
-
(10,000)
(2,667)
(9,290)
(369)
(1,738)
(47,880)
(9,955)		 Transfer to
unrestricted
funds
£
-
(32,187)
-
-
-
-
-
-
-
-
-
-
-
-
-		 C/f
£
-
-
21,238
-
794
-
-
6,805
15,000
-
5,333
-
-
5,962
287,280
0
338,402 1,220,048 (1,183,851) (32,187) 342,412

Community Fund

Restricted to the administration of the awards of community partnership grants via the Great British Pub awards in order to support the licensed trade industry through funding pub centred community projects during the COVID-19 pandemic.

**Hardship Funds ***

Donations received to be used to alleviate poverty and hardship endured by employees of the donors and their families resulting from the COVID-19 pandemic.

Grant 1

Restricted to current and ex-employees of a Pub Company. Grants are awarded by the Charity and reimbursed by the Pub Company.

Grant 2

Restricted to the provision of mental health training for managers in the licensed trade.

Grant 3

Restricted to funding the cost of awards made to sixth form pupils.

Grant 4

Restricted to funding a contribution towards the accommodation costs of an individual.

Welfare Grant

Restricted to grants awarded to individuals living in London.

Sodexo Capital Grant

Restricted expenditure relates to depreciation charges in respect of capital investment made by Sodexo.

58 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

25 . ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Pension scheme liability		 Restricted
Funds
2021
£
239,400
-
133,714
-
-
-
373,114		 Unrestricted
Funds
2021
£
30,430,907
45,910,015
10,645,456
(9,937,321)
(6,592,541)
(1,543,000)
68,913,516		 Total
Funds
2021
£
30,670,307
45,910,015
10,779,170
(9,937,321)
(6,592,541)
(1,543,000)
69,286,630		 Total
Funds
2020
£
31,784,761
42,746,224
9,423,094
(10,265,331)
(7,012,134)
(3,916,000)
62,760,614

26 . CONTINGENT ASSETS

The Hilda Webber Trust was set up to allow for Hilda Florence Webber's niece to benefit from the accommodation and income generated from two properties in Hove, Sussex. On the death of her niece, the full ownership of the properties will be left to the Charity in Hilda Florence Webber's will to which the Charity's Chief Executive is an Executor.

27 . PENSION COMMITMENTS

The Charity participates in the Teachers' Pension Scheme (TPS) and the Licensed Trade Charity 1967 Life Assurance and Pension Scheme (LTC). The Charity makes contributions to both in accordance with recommended rates. These are both defined benefit schemes. In 2021, the cost of the contributions to these schemes was £1,872,530 (2020: £1,417,446) being £966,783 (2020: £1,026,532) to the TPS and £905,747 (2020: £390,914) to the LTC.

The schemes are accounted for differently as the assets and liabilities of the LTC scheme can be separately identified as belonging to the Licensed Trade Charity. This is not the case for the TPS scheme and only summary information as a whole is provided. During the year, the Charity contributed £119,660 (2020: £66,548) to their defined contribution scheme with Legal & General.

Teachers' Pension Scheme

The Charity participates in the TPS for its teaching staff. This is a multi-employer defined benefits pension scheme and it is not possible or appropriate to identify the assets and liabilities of the TPS which are attributable to the Charity. As required by FRS 102 "Retirement Benefits", the Charity accounts for this scheme as if it were a defined contribution scheme.

The pension charge for the year includes contributions paid to the TPS of £952,917 (2020: £1,031,628) and contributions accrued at the year end £128,537 (2020: £114,671).

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pension Regulations 2010 and Teachers' Pension Scheme Regulations 2014. Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and pensions benefits are paid by public funds provided by Parliament.

The employer contribution rate is set following scheme valuations undertaken by the Government Actuary Department every 4 years. The latest valuation report for the TPS was prepared as at 31 March 2016 and published in March 2019. The report confirmed an employer contribution rate for the TPS of 23.6% from 1 September 2019. A new valuation as at 31 March 2020 is now underway but has yet to be published. Any changes required to contribution rates as a result of the 2020 valuation will be made in 2023.

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

59

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

27 . PENSION COMMITMENTS (continued)

Teachers' Pension Scheme (continued)

The Department for Education has also devolved the scheme administration costs to scheme employers in the form of an administration charge of 0.08% of the employers' salary costs which has resulted in a total employer payment of 23.68%.

Licensed Trade Charity 1967 Life Assurance and Pension Scheme

The Charity operates a defined benefit pension scheme providing benefits based on final pensionable pay. The assets of the Scheme are held separately from those of the Charity, and are invested in a range of funds. Contributions to the scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees' working lives with the Charity. The contributions are determined by a qualified actuary on the basis of triennial valuations based on the projected unit method.

The triennial valuation in April 2020 showed a deficit of £1,761,000. Following this valuation the Charity agreed a deficit recovery plan. The Charity made an additional payment of £500,000 in February 2021, and agreed to make further additional payments of £250,000 in February 2022 and £250,000 in February 2023 should the scheme be in deficit at those time points. The scheme was not in deficit in February 2022 and therefore no additional contribution was required. Following the valuation the employer contribution rate was increased from 20.00% to 26.00% of pensionable earnings from 1 April 2021. The employer contribution rate will further increase to 31.00% in 2023.

In 2021, the FRS 102 valuation shows a deficit of £1,543,000 (2020: £3,916,000). The assumptions which have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rates of increase in pensionable salaries and pension payments. The assumptions adopted for the most recent actuarial valuation assumed that investment returns would increase by 3.48% per annum, pensionable salary increases would be 2% and 4% in January and September 2022 respectively and 3.48% per annum thereafter, future increases in pensions in payment would be 3.48% per annum and the discount rates would be 1.89% per annum.

The normal contribution for the period was £405,747 (2020: £390,914). During 2021, the Charity paid contributions to the Scheme at a rate of 20.00% of pensionable salaries until 31 March 2021 and 26.00% thereafter.

Fair value of scheme assets
Present value of unfunded obligations
Net liability
Changes in the present value of the defined benefit obligation were as follows:
Opening defined benefit obligation
Actuarial (gains) / losses
Current service cost
Employee contributions
Interest costs
Benefits paid
Closing defined benefit obligation		 2021
£
21,221,000
(22,764,000)
(1,543,000)
2021
£
23,336,000
(1,383,000)
1,045,000
18,000
316,000
(568,000)
22,764,000		 2020
£
19,420,000
(23,336,000)
(3,916,000)
2020
£
19,563,000
3,052,000
788,000
13,000
408,000
(488,000)
23,336,000

60 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

27 . PENSION COMMITMENTS (continued)

Changes in the fair value of scheme assets were as follows:

Opening fair value of scheme assets
Actual return on scheme assets less expected return
Expected return
Benefits paid
Contributions paid by the Charity
Employee contributions		 £
19,420,000
975,000
264,000
(568,000)
1,112,000
18,000		 £
17,096,000
1,898,000
355,000
(488,000)
546,000
13,000
21,221,000 19,420,000

The major categories of scheme assets as a percentage of total scheme assets are as follows:

2021 2020
Equities 24.00% 26.00%
Diversified Growth Fund 35.00% 41.00%
Bonds 2.00% 0.00%
Other assets and cash 39.00% 33.00%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2021 2020
Discount rate 1.89% 1.34%
Inflation 3.48% 3.05%
Rate of increase in salaries - year 1 6.00% 3.00%
Rate of increase in salaries - year 2 onwards 3.48% 2.50%
Limited price indexation pension increase capped at 5.0% 3.35% 2.98%
Limited price indexation pension increase capped at 2.5% 2.26% 2.13%

Amounts for the current and previous four periods are as follows:

Defined benefit pension schemes

Defined benefit obligation
Scheme assets
Deficit
Experience adjustments on
scheme liabilities
Experience adjustments on
scheme assets		 2021
£
(22,764,000)
21,221,000		 2020
£
(23,336,000)
19,420,000		 2019
£
(19,563,000)
17,096,000		 2018
£
(17,034,000)
15,587,000		 2017
£
(17,073,000)
15,862,000
(1,543,000) (3,916,000) (2,467,000) (1,447,000) (1,211,000)
(300,000)
975,000		 156,000
1,898,000		 59,000
1,106,000		 (9,000)
(758,000)		 (273,000)
1,163,000

Licensed Trade Charity Trustees’ Report and Financial Statements 2021

61

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

28 . RELATED PARTY TRANSACTIONS

There were no related party transactions between the Charity and the Trustees during the year.

29 . OPERATING LEASES COMMITMENTS

At 31 December 2021 the Group had future minimum lease payments under non-cancellable operating leases.

Within one year
Later than one year but within five years		 2021
2020
£
£
240,140
272,843
239,071
482,606
479,211
755,449

30 . CAPITAL COMMITMENTS

At 31 December 2021 the Group had no capital commitments.

31 . FINANCIAL INSTRUMENTS

Cash and cash equivalents
Financial assets measured at amortised cost
Financial assets measured at fair value
Financial liabilities measured at amortised cost		 2021
2020
£
£
5,795,671
4,958,918
4,030,544
3,598,043
39,769,014
36,648,173
49,595,229
45,205,134
(9,433,360)
(10,348,711)
Group		 Charity
2021
2020
£
£
5,349,307
4,825,654
4,451,624
3,719,080
39,769,014
36,648,173
49,569,945
45,192,907
(9,413,077)
(10,330,486)

Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.

Financial assets measured at fair value comprise listed investments.

Financial liabilities measured at amortised costs comprise bank loans, trade creditors, amounts owed to group undertakings and other creditors.

62 Licensed Trade Charity Trustees’ Report and Financial Statements 2021

I

Licensed Trade Charity Heatherley, London Road Ascot, Berkshire SL5 8DR

Telephone 01344 884440 Email info@ltcharity.org.uk

Website licensedtradecharity.org.uk Helpline 0808 801 0550 now open 24 hours 365 days per year

Registered Charity No. 230011

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