Charity Registration Number: 231144 Consolidated Financial Statements for the year ended 30 April 2022 



## Contents 

A Message from the Chair ....................................................................................................................... 3 A Message from Our CEO ...................................................................................................................... 4 Trustees' report (incorporating the Group Strategic Report) ........................................................ 5 Independent Auditor’s Report to the Trustees of SPCK ............................................................... 19 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ................................................. 23 BALANCE SHEETS ................................................................................................................................. 24 CONSOLIDATED STATEMENT OF CASH FLOWS .................................................................... 25 NOTES TO THE ACCOUNTS ........................................................................................................... 26 

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## A Message from the Chair 

Welcome to SPCK’s 2022 annual report. 2021-22 was a remarkable year in the long history of SPCK.  We have continued our growth journey by embracing no less than three very different organisations into our group. 

In May 2021 we completed SPCK’s transition to becoming a globally significant Christian publisher with our acquisition of Lion Hudson’s publishing.  This strategic move combines the UK’s leading publisher of Christian books for adults with its leading publisher of Christian books for children.  Our Governing Body board of trustees were unanimous in this decision and we are very grateful to the previous owners of the company for making the merger possible. 

A major theme of my tenure as Chair has been the need to build a winning culture. Over the past year it has been exciting to see how the merged team has taken steps to do exactly this, while remaining true to the abiding values of both SPCK and Lion Hudson. 

In Autumn 2021 we also welcomed the Catholic Bible School and York Courses into our organisation. Although these were much smaller than Lion Hudson, they are both significant in their own right. York Courses has an outstanding track record of creating audio-based Lent and Advent courses at a time when audio is seeing substantial growth. Meanwhile, Catholic Bible School brings both reach into, and understanding of, the Catholic world. This development is ideally timed as SPCK also published in the autumn its celebrated editions of the English Standard Version Catholic Edition (ESV-CE) which will be used in the forthcoming new Catholic lectionary. 

These significant steps show the trustees’ confidence in publishing. Many publishers have seen significant growth in recent years even as markets have undergone rapid changes. Around the world there are growing numbers of Christians, growing numbers of people who can read, and growing numbers of people who can afford books. As we continue to raise our horizons beyond our traditional markets we believe we are delivering on our vision and mission. 

This annual report will be my last as SPCK’s Chair as I will rotate off the Governing Body in November 2022 after six years as a trustee and three as Chair. I am hugely grateful for the growth and impact that SPCK has achieved during this time and it has been a pleasure to get to know the members, authors, trustees, donors, staff, pensioners and supporters. Thank you for your continued commitment and prayers. 

James Catford, Chair 

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## A Message from the CEO 

In May 2021 I shared with the new combined staff team an annual plan focused around 

Creating, together, a globally significant Christian publisher which is: 

- **Faithful** to Jesus Christ and in building on the best of SPCK, IVP, Lion Hudson and Catholic Bible School. 

- **Fruitful** in publishing the very best Christian books and resources that benefit and inspire ever growing numbers while delivering a profit to be reinvested in our mission. 

It has been a privilege to work with the team and trustees over the past year as we have made huge steps towards achieving this. 

Some of our excellent results this year, such as our **highest ever income** , follow naturally from the growth that has come with the merger. But other encouraging results, such as winning **Christian Publisher of the Year** and being shortlisted for **Independent Publisher of the Year** , show a real endorsement from the publishing world of what we are achieving. 

It has been a challenging year for me personally, leading a significant integration while dealing with ill health in my family. I am most grateful for the outstanding support of the newly formed Senior Leadership Team, the excellence and hard work of the staff team as a whole, the diligence and expertise of our trustees, and the encouragement and prayers of our supporters. 

I hope you enjoy the annual report! 

Sam Richardson, Chief Executive 

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## Trustees' report (incorporating the Group Strategic Report) 

The Society’s accounts for the year ended 30 April 2022 have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP 2019 FRS 102) and Financial Reporting Standard 102 (FRS 102). 

## Objectives and Activities 

## Objects 

SPCK’s objects are to promote Christian knowledge in any part of the world by such means, including the furtherance of education at all levels, as the Society may from time to time think fit, in accordance with the principles of the Church of England in promoting the learning, ministry, fellowship, witness and worship of that Church, or any Church or other Christian body with which the Churches of the Anglican Communion seek or may seek to co-operate. 

## Public Benefit 

The trustees confirm that they have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit. The charitable purpose for the charity within the meaning of the Act is enshrined within its objects. 

The Society’s activities relate directly to our charitable aims and objects. Our programmes bring benefit to all parts of the world, and we do not seek to limit our activities to a narrow focus. We operate as a publisher of books and resources in both physical and digital form, providing some materials free of charge to the end-user under our charitable programmes. The information we produce is aimed at a very wide spectrum of readers, recipients and consumers, including people who are only potentially interested in Christianity, as well as those on its fringes, in addition to those who are actively involved in church life. Our offerings include material for children as well as for adults. 

## Trusts Managed by the Society 

Bray Funds _–_ SPCK manages a number of historic endowed trusts. Following an exercise with the Charity Commission, the income from all of these may now be spent in line with SPCK’s general purposes, although we have adopted a policy of allocating it towards UK projects and overseas projects. These trusts remain as sub-charities within SPCK and include Becker Trust, H. M. Bliss Trust, Clericus Fund, Crawford Trust, Bishop John Charles Jones Trust, Palmer Trust, Piercy Trust, H. C. Richards Fund, St Augustine’s Fund, Bray Charity, and D’Allone Educational Foundation. 

## Structure, Governance and Management 

## Governance 

SPCK is administered by a Governing Body of unpaid members, acting as trustees, who serve alongside paid executives on management committees which oversee the activities of the charity under delegated authority. The Chief Executive is responsible to the Governing Body 

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for the overall administration of the Society and for ensuring that Governing Body policy is carried out. 

## Committees 

The main SPCK committees during 2021-22 were: 

- Board Support Group (also acts as Governing Body Membership Committee) 

- Audit Committee (also acts as Investment Sub-Committee) 

- Publishing Committee 

The responsibilities of the first two committees and oversight of the executive functions are defined in Standing Orders. Each committee reports to the Governing Body, which approves major decisions and has overall responsibility for all SPCK’s activities. 

## Trustee Selection, Appointment and Competence 

The Governing Body of trustees is elected at the Annual General Meeting by members of the Society from among their number, following submission of nominations not later than 21 days in advance of the meeting. Members are elected for three-year terms of office and may be reelected up to a maximum period of nine years. In addition to its elected members, the Governing Body may co-opt up to six of the Society’s members or Vice-Presidents to serve on the Governing Body. 

New trustees receive a comprehensive induction pack to acquaint them with SPCK’s aims and activities, policies and practices, management and governance. Regular updates to this information pack are provided. All trustees are informed of their responsibilities under charity law, with particular reference to Charity Commission guidance publications. Trustees are also encouraged to go on relevant trustee training paid for by SPCK. 

## TRUSTEES 

The members of the Governing Body of SPCK who serve as trustees (including past members who served during the year), and the committees on which the current members serve, are: 

_James Catford_ (Chair) – Board Support Group, Audit Committee, Publishing Committee 

_Sarah Bailey -_ Publishing oversight, Publishing Committee 

_Dr Michael Beasley_ (Vice-Chair) – Board Support Group, Audit Committee 

_Paul Burrage_ – Board Support Group, Chair of Audit Committee 

_Matthew Cashmore_ – Publishing Committee 

_Matthew van Duyvenbode_ – stepped down in September 2021 

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_Sue Halliday_ - Chair of IVP Publishing Board 

## _Dr David Muir_ 

_Dr Sanjee Perera_ – elected in November 2021 

_Elizabeth Renshaw-Ames_ - Audit Committee, Pensions oversight 

_Dr Cathy Ross_ - Worldwide oversight – stepped down in November 2021 

_Eric Thompson_ - Audit Committee, Staff/HR oversight 

_Stephen Tudway_ - Legal oversight 

## KEY MANAGEMENT PERSONNEL 

The key management personnel of the charity are in charge of directing, controlling, running and operating the charity on a day-to-day basis. As such they are considered to be the following: 

- Trustees 

- Senior Leadership Team 

   - Sam Richardson (Chief Executive) 

   - Jenny Beadle (Human Resources Director) 

   - Anthony Brown (Finance Director) 

   - Wendy Grisham (Group Publishing Director) 

   - Mark Read (Art Director) 

   - Christopher Watkins (Production Director) 

   - Suzanne Wilson- Higgins (Deputy Chief Executive) 

All trustees give their time freely and no trustee received any remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in Note 5 to the financial statements. The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. Salary levels are benchmarked in line with other similar organizations, including other Christian charities and other publishers, and benchmarking is in place within the organization. 

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People 

## **Patron** 

Her Majesty The Queen 

## **President** 

The Most Revd and Right Hon Archbishop of Canterbury 

## **Vice-Patrons** 

The Bishop of London The Primates of Ireland, Australia and the USA The Moderator of the Church of North India 

## **Ex-Officio Vice-Presidents** 

Archbishops and Bishops of the Anglican Communion who are members of the Society 

## **Elected Vice-Presidents** 

Mr Paul Chandler The Ven. Dr William Jacob Mr LE “Paddy” Linaker The Revd Canon Michael Moore LVO The Revd Canon Dr Nicholas Sagovsky The Revd Sharon Swain The Rt Revd Lord Williams of Oystermouth 

## **Honorary Life Member** 

Ian Ferguson 

## **Board of Reference** 

James Catford Sir Ewan Harper CBE The Rt Revd Rose Hudson-Wilkin The Rt Revd Dr Graham Kings Major General Roddy Porter MBE The Rt Revd John Pritchard Dr Elaine Storkey The Revd John Tattersall Terry Waite CBE Professor Frances Young 

## **External Reviewer** 

Pat Phillips MBE 

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## Legal and administrative details 

## Identity 

The Society for Promoting Christian Knowledge (otherwise known as SPCK) is a registered charity, no. 231144, incorporated under Royal Charter in 1969, with its head office currently at 36 Causton Street, London SW1P 4ST. In January 2005, the Privy Council approved amendments to the Royal Charter Bye-laws to reflect the structural and operating changes which had taken place within the Society during the previous 35 years. Further amendments were made in November 2011 to provide greater flexibility to respond to future changes in ways of working. SPCK is a membership organization, founded on 8 March 1698 to promote Christian knowledge through publishing, lending libraries and schools. The Society has been a publisher and distributor of Christian literature since its inception, and helps to resource theological education and ministry on a worldwide basis. The number of members at 30 April 2022 was 145 (2021: 158). 

## PRINCIPAL PROFESSIONAL ADVISERS 

|**Auditors**|Jacob Cavenagh & Skeet|
|---|---|
||5 Robin Hood Lane|
||Sutton|
||Surrey SM1 2SW|
|**Bankers**|Barclays Bank PLC|
||Floor 27|
||1 Churchill Place|
||London E14 5HP|
||NatWest|
||Chichester|
||5 East Street|
||Chichester|
||West Sussex PO21 1HH|
||CAF Bank Ltd|
||25 Kings Hill Avenue|
||Kings Hill|
||West Malling|
||Kent ME19 4JQ|
|**Insurance Brokers**|Scrutton Bland|
||Fitzroy House,|
||Crown Street,|
||Ipswich,|
||Suffolk, IP13LG|
|**Investment Managers**|Sarasin & Partners LLP|
||Juxon House|
||St Paul’s Churchyard|
||London EC4M 8BU|



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Newton Investment Management Ltd Bank of New York Mellon Centre 160 Queen Victoria Street London EC4M 4LA 

M&G Investments Laurence Pountney Hill London EC4R 0HH 

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET 

**Pension Administrators** The Church of England Pensions Board 29 Great Smith Street London SW1P 3PS **Solicitors** Wedlake Bell LLP 71 Queen Victoria Street London EC4V 4AY 

## Achievements and performance 

Following its growth in recent years, SPCK now operates under a range of different brands each with specific target markets and objectives. This is a very brief tour of the different parts of our businesses and their achievements in 2021-22. 

## **Adult Publishing Imprints** 

**SPCK Publishing** is our eponymous imprint, seeking to publish the very best Christian authors from across the theological spectrum. We have taken particular pride in the diversity of our author base, and were delighted to see _Communicate for Change_ by Genelle Aldred impact the Nielsen Bookscan religion chart on its launch. Our biggest seller of the year was the brilliant _A Little Bit of Faith_ by Katie Piper, which performed brilliantly as a beautifully packaged hardback reflecting the consistent quality of our design work. Watch out for autobiographies of Rosemary Conley and Archbishop John Sentamu in the coming months. 

**Form** is a new boutique imprint focused on the burgeoning area of spiritual formation. Form launched in Summer 2021 with a real bang, and soon after John Mark Comer’s _Live No Lies_ went straight to number one in the Nielsen Bookscan weekly religion chart. _Be Still_ by Brian Heasley has also seen great success on both sides of the Atlantic, and there are exciting plans in place from a diverse range of authors for 2022-23. 

**Marylebone House** continues to publish spiritually interesting fiction, with _Tales from Lindford_ by perennial favourite Catherine Fox the latest title to come out. The **Lion Fiction** imprint includes classic Christian fiction and 2022 saw a new edition of Francine Rivers’ _Redeeming Love_ to tie in with the new film. 

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**Lion Books** publishes non-fiction that will appeal to the general market and is particularly well-known for classic illustrated titles such as the _Lion Bible Handbook_ . _Cosmic Chemistry_ by John Lennox was one of our major titles for 2021 and did not disappoint as the author went on a global tour explaining how God and science mix. **Lion Scholar** publishes for the undergraduate market, with _In The Steps of Jesus_ by Wycliffe Hall’s Peter Walker proving a popular new title. 

**Monarch** publishes a range of Christian non-fiction and we were delighted to publish an important book, _Doing Time_ by Jonathan Aitken and Edward Smyth. Ted Smyth spoke movingly with Leroy Logan at our 2021 AGM, and we were delighted to have Jonathan Aitken as the speaker for Bray Day 2022. 

**York Courses’** Lent Course for 2022 was _God Has No Favourites_ by Carmody Grey. The combination of a new design approach with continuity of the hybrid audio-print format was greatly appreciated across the country including by the _Church Times’_ reviewer. Some of the older York Courses titles will be available to purchase on the SPCK website, while others will be available to use digitally through the Home Groups website. 

## **Kids Publishing Imprints** 

**Lion Children’s Books** remains the established market leader for quality Christian children’s books which can be found in outlets including W H Smith and in over two hundred languages around the world. In spring 2022 we launched a significant new partnership with the Cheeky Pandas in 2022. The Pandas were highly visible at Spring Harvest, and at Big Church Day Out where we hosted a brilliant storytelling tent. 

**Candle** publishes colourful and accessible Christian children’s resources. 2021 saw a new edition of one of Candle’s flagship products, the _Candle Bible for Toddlers_ . 

**SPCK** children’s books are quirky and cutting-edge, no more so than Roger McGough’s _100 Best Christmas Poems for Children_ which proved a delightful addition to the list. Watch out in 2023 for the new _Big Story Bible_ by none other than Tom Wright, with co-editions already sold in several different languages. 

## **IVP Publishing Imprints** 

**Inter-Varsity Press** books aim to help readers (and listeners) Know, Grow, Go and Show. 

- **Know** God and the Bible: The _ESV Search The Scriptures_ Bible for the first time brings together the much-loved Bible reading plan integrated alongside the Bible text. We have high award hopes in the wake of the _NIV Bible Speaks Today_ Bible winning Bible of the Year 2021 and being shortlisted in the British Book Design and Production Awards. 

- **Grow** in the Christian Life: _40 Women_ by Ros Clarke was a big hit for Lent devotional which explored women’s stories in the Bible from Eden to Easter. You can also read the studies in the Prayermate app. 

- **Go** and share the good news: _A Place for God_ by Pete Nicholas, with a foreword by Tim Keller, explores the big questions being asked by today’s generation. 

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- **Show** the relevance of faith for all of life: _John Stott on Creation Care_ brings together Stott’s writings on this urgent issue for the first time. 

**Apollos** is IVP’s more academic imprint. _The History of Christianity in Britain and Ireland_ by Gerald Bray brings together a lifetime of scholarship into the first single-volume title on the topic for a generation. 

## **Programmes** 

The **Catholic Bible School** found that its programme of Bible Weekends in parishes continued to be interrupted by Covid, but the team adapted including putting a huge amount of work into the recording of the audio version for the ESV-CE Bible. As well as being available in audiobook format, this will form the centrepiece of a new app that the team are working on. 

The **Assemblies** website continues to be in great demand, and after twenty years funding has been secured for a new relaunch to take place in the coming months. The World Book Day assembly by Hannah Taylor was one of a number of timely new assemblies published through the year. 

The **Home Groups** programme included not just the website, which hosted a brilliant series around the Archbishop of Canterbury’s 2022 Lent Book, _Embracing Justice_ by Isabelle Hamley, but also a very well-attended set of seminars at the Christian Resources Exhibition. 

The **Diffusion** prison fiction programme remains in high demand, with over 8,000 specially commissioned books sent into prisons over the past year. Over 100 prisons have now taken part in the scheme. 

The **Africa Theological Network Press** has taught us much about how challenging it can be to publish without the infrastructure we take for granted in the UK. Nonetheless, Harvey Kwiyani’s _Africa Bears Witness: Mission Theology and Praxis in the 21[st] Century_ is one of a number of important publications which ATNP has made accessible on the continent for the first time. 

## Financial review 

The consolidated result shown in the accounts on page 23 shows a significant increase in income, from £5,781,000 to £8,405,000. This is driven primarily by the acquisition of Lion Hudson’s publishing, which drove a significant increase in publishing income from £4,205,000 to £5,874,000, and by additional contributions from William Leech (Investments) who generously shared the proceeds of growth resulting in our investment income increasing from £984,000 to £1,813,000. Donation income also grew as we received a significant asset in the form of the Catholic Bible School building in Nutbourne. 2021 had been the first year in which our income decreased since our CEO joined in 2014 (at which point income was just £3,000,000), so it is encouraging to be back on the front foot on income. 

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The acquisition of Lion Hudson’s publishing saw us carry out a significant restructuring at considerable expense captured under re-organisational costs of £249,000 mostly related to redundancy and IT infrastructure costs. This combined with other investment in the merger pushed publishing into a considerable loss of £1,844,000 (2021: loss of £672,000), but having made many difficult decisions to reduce the cost base we are aiming for breakeven in 202223 and profitability in 2023-24. This, if achieved, will be a significant turnaround as the publishing has lost money for many decades. The publishing losses are shown on the blue bar below. The orange bar represents the overall surplus of the organisation as measured by income versus expenditure, ending the year with a surplus of £302,000 (2021: surplus of £520,000); Overall, we ended up with an organisational deficit of £1,451,000 (the yellow bar) (2021: surplus of £3,200,000) as the values of our investments reduced partly because of poor market performance and partly because of the contribution from William Leech (Investments) Ltd. 

Overall Society assets therefore ended the year on £11,358,000, having fallen back from last year’s record high of £12,809,000. Our freely available reserves represent the charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes.  The total is the sum of cash at the bank, stock, deposits and other debtors less current liabilities and designated funds that can reasonably easily be turned into cash. This represents a change in unrestricted free reserves calculation and is in line with the latest charity commission guidance. Previous year unrestricted reserves have been adjusted accordingly for comparative purposes. 

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## Investment policy and performance 

The value of the Society’s investments at 30 April 2022 was £16,483,000 ( _2021: £17,759,000_ ). Of this amount, £10,791,000 ( _2021:_ £ _12,354,000_ ) represented the value of shares and cash waiting investment in William Leech (Investments) Ltd, £245,000 ( _2021: nil_ ) in investment property and £5,447,000 ( _2021: £5,405,000_ ) the value of other listed investment. Overall, the SPCK portfolio showed an unrealised net loss of £1,753,000 for the year ( _2021: Gain of £2,680,000_ ) this being a direct reflection of market conditions and the additional contributions from William Leech (Investments) Ltd. The Society’s investments other than those in William Leech (Investments) Ltd are invested in four separate common investment funds operated by four separate fund managers. The Society’s investment portfolio is managed by the trustees, with authority delegated to the Board Support Group if urgent decisions are needed between the scheduled trustee meetings. The trustees review the portfolio periodically, seeking a balance between capital growth and income, setting benchmarks as they consider appropriate, and following the Church of England’s ethical investment guidelines. 

Over the past year, the market value of the Society’s Common Investment Funds increased by 1% _(2021: 19.6% increase)_ during the same period the FTSE All-Share index increased by 5.1% _(2021: 22.1% increase)._ The income yield for the year from those investments, which excludes William Leech, was 3.53% _(2021: 4.8%)_ , which was above the target range set of between 3% and 3.5%. This reflects the lower market value of the shares towards the year end. 

The Society owns 20% of the issued share capital of William Leech (Investments) Limited, an investment company which was established for the benefit of five Christian charities. The directors of this company have invested their funds in marketable securities. The trustees of SPCK periodically review the return on assets of the company and associated trusts and consider that the investment is in accordance with the Society’s investment strategy and that the diversity of its investment is enough in the context of its risk assessment. In practice, SPCK is not able to influence the investment policy of William Leech (Investments) Limited. 

The Society holds such investments to generate a return and has made no social investments. However, these investments are made ethically in line with the Society’s Investment Management Policy as set by the Governing Body. The Governing Body has adopted the terms of the Ethical Investment Policy of the Church of England’s Ethical Investment Advisory Group as may be revised from time to time. 

The Society holds 100% investment in its subsidiary undertaking IVP Ltd whose accounts are consolidated with SPCK Group accounts. For the year ending 30 April 2022 IVP Ltd accounts shows a net deficit in reserves of £1,579,000 (2021: £1,115,000). With the transfer of the company to SPCK, there is an on-going commitment from SPCK to support IVP Ltd aims and objectives and to underwrite the current deficit in the reserves. 

The trustees also recognise that IVP Ltd reported a deficit of £464,000 (2021: £316,000) for the year ended 30 April 2022 but are aware that plans are underway to improve profitability of the whole organisation (including IVP) and to review the existing organisational setup with a review to reducing complexity around the inter-company loan and management charge. 

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## Reserves 

The total funds held by the Society at the end of the reporting period were £11,358,000 _(2021: £12,809,000)._ We have made a provision of £5,014,000 ( _2021: £5,502,000_ ) for deficit contributions due to the Church Workers’ Pension Fund. Many of these funds are endowed or restricted, and therefore the unrestricted funds available to the Society at the end of the reporting period were £3,172,000 _(2021: £3,633,000)_ . Much of the unrestricted funds are held by William Leech (Investments) Ltd and would be difficult for the Society to access at short notice. Therefore, the Society defines its freely available reserves as the charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes.  On this basis, the Society has available reserves of £504,000 at the end of the current period _(2021: £773,000_ ). The reserves level is below the target range of £1,300,000 to £2,000,000, calculated on the basis of 6-9 months staff costs. The trustees have determined that a prudent level of reserves of approximately 6-9 months of expenditure: this level would be required in the event of an orderly winding down the charity. These costs would cover commitments for intellectual property already contracted, not yet delivered or books already in the pipeline of production, such that it could fulfil its contractual obligations to authors, suppliers and staff (in the event of redundancy). As per note 19, the charity is taking action to shore up its cash position, and we continue to monitor our performance closely in the expectation of returning to the targeted reserves policy range. 

## Risk Management 

The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems have been established to manage those risks. The trustees have formalized their risk assessment and risk management process to include a thorough annual review of the risk register compiled and updated in consultation with executive staff. We keep under active review the adequacy of the systems which are in place in the light of changing circumstances. As a result of the significant size of the charity, the trustees delegate responsibility for day-to-day management to staff, using committees, planning and budgeting procedures, and hierarchical authorization. 

The major risk categories, the level of acceptable risk (from _averse,_ through _minimalist_ , _cautious_ and _open_ , to _hungry_ , and the mitigation systems are captured in the Risk Register as follows: 

- Governance risks, on which we have a _cautious_ risk appetite. Risks in this category are mitigated by trustee training, trustee skills audits, use of professional advisers, regular meetings of board and committees, and register of disclosed interests. 

- Operational risks (included Covid-19), on which we have a _cautious_ risk appetite. These risks are mitigated by Business Continuity Planning, identifying and risk-managing key strategic relationships, emergency action plans relating to IT issues, active steps to prevent cyber-fraud, notice periods, succession planning and insurance. 

- Financial risks, on which we accept have an _averse_ risk appetite. These risks are mitigated by financial controls, budgeting, reporting, investment management policy, 

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reserves policy, credit control, and engagement with Church of England Pensions Board supported by professional legal, actuarial and financial advice. 

- Legal risks, on which we have an _averse_ risk appetite. These risks are mitigated by HR and legal advice, staff handbook with regular review, and work with solicitors. 

- Reputational risk, on which we have a _cautious_ risk appetite. These risks are mitigated by editorial review process, media training and communications planning. 

- Data risks, technological and compliance risks, on which we have a _minimalist_ risk appetite. These risks are mitigated by following best practice in IT and by ensuring staff are fully trained in areas of compliance including GDPR and AML. 

The trustees are of the view that it is financial risks that have the most potential to have a negative impact on the charity, and the trustees and Audit Committee have noted the following specific risks and mitigations. 

- Sales not performing to expectations, resulting in lack of profitability and ultimately cashflow crisis. Mitigations: Annual budget process, with review against progress in monthly KPIs (shared with the board) and weekly internal meeting; book sales are diversified across a large range of titles, authors and territories (more so following the merger with Lion Hudson); 80% of publishing income is from existing rather than new titles; cashflow KPI shared monthly with Governing Body and backup plans in place including overdraft and release of investments. In April 2022 the trustees agreed a process of consolidating our investments, thereby giving us access to a new lending facility should we need further funds to support short-term cashflow or longer-term working capital to support growth. 

- Cost base being too high, resulting in lack of profitability and ultimately cashflow crisis. Mitigations: a significant program of cost savings was made following the Lion Hudson merger, including redundancies, reduction of office footprint and consolidation of systems. Two significant steps in 2022-23 will further reduce the cost base: the move to a new distributor with an on-site digital printing facility to reduce cash tied up in stock, and our vacating our current office in Causton Street for a smaller and cheaper location. 

- Risk from poor cost controls, resulting in cashflow crisis. Mitigations: a new purchase order system coming in during 2022-23, with full training and uptake. 

- Inability to meet contributions to historic pension liabilities. Mitigations: a new plan agreed with the Church of England Pensions Board (CEPB) in spring 2022, based on the valuation dated 31 December 2020, is affordable to us based on our forecasts; we continue to work hard to engage with CEPB and to use professional advisers to assist us with this and with developing our pensions strategy. 

- Macro-economic environment, in particular Brexit and Covid-19, could have an impact on SPCK’s investments, pension or income. Mitigations: SPCK regularly reviews its investment management policy (most recently in the November 2019 Governing Body) and currently spreads its investments across three different investment managers, all of whom have instructions to keep a portfolio with a spread across both geography and asset types; encourage measures to reduce volatility in the pension 

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deficit; SPCK is taking significant steps to increase the international scope of its work so that we are less reliant on the UK economy. 

Any of the aforementioned could have a potential impact on SPCK’s reserves. Currently the Society’s freely available reserves (defined as the charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes) of £504,000 _(2021: £773,000_ ) which is below the target range of £1,300,000 to £2,000,000. As per note 19, the charity is taking action to shore up its cash position, and we continue to monitor our performance closely in the expectation of returning to the targeted reserves policy range. 

## Fundraising Disclosures 

During 2021-22 SPCK employed one part-time fundraiser, a member of the Institute of Fundraising. The bulk of voluntary income came from charitable trusts and legacies. However, SPCK also has subscribing members and a number of regular and one-off donors. 

SPCK is registered with the Fundraising Regulator and Fundraising Preference Service. We aim to abide by the Code of Fundraising Practice. SPCK has received no complaints directly or via the Regulator, nor any opt-outs via the Fundraising Preference Service. Further details of how we use personal data can be found in our privacy statement www.spck.org.uk/privacyand-cookies-policy. 

We are not aware of any community fundraising that is undertaken by third parties in our name but were we to become so we would ensure that it follows the Code of Fundraising Practice. Our fundraising complaints procedure can also be found on our website. 

## Statement of Trustee Responsibilities 

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with 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). 

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to: 

- Select suitable accounting policies and then apply them consistently; 

- Observe the methods and principles in the Charities SORP; 

- Make judgments and accounting estimates that are reasonable and prudent; 

- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements, and, 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

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spck
The trustees are re5pon5ible for maintaining proper accounting records which disclose with
reasonable accuracy at any time the financial position of the charity and enable them to ensure
that the financial statements comply with the Charities Act 201 I, the Charity (Accounts and
Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for
safeguarding the assets of the charity and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities. The trustses are responsible for the
maintenance and integrity of the charirx and financial information included on the charity's
website. Legislation in the United Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdiction5. The trustees. report for
the year ended 30 April 2022 was approved by the trustees on 22 September 2022
and signed on their behalf by
James Catford, Chair of the Governing Body
Society for Promoting Christian Knowledge 36 Causton Stree( London SW I P 4ST
18

## Independent Auditor’s Report to the Trustees of SPCK _Opinion_ 

We have audited the financial statements of the Society for Promoting Christian Knowledge (the “Charity”) and its subsidiary (the group) for the year ended 30 April 2022 which comprise the consolidated statement of financial activities, the consolidated and parent balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

- Give a true and fair view of the state of the group’s and of the Charity’s affairs as at 30 April 2022 and of the group’s incoming resources and application of resources for the year then ended; 

- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- Have been prepared in accordance with the requirements of the Charities Act 2011. 

## _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 and parent Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## _Conclusions Relating to Going Concern_ 

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s and Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. 

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

## _Other Information_ 

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

19 



opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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

We have nothing to report in this regard. 

## _Matters on which We are Required to Report by Exception_ 

In the light of the knowledge and understanding of the Group and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report included within the trustees’ report. 

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: 

- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

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

- The information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- Sufficient accounting records have not been kept; 

- The financial statements are not in agreement with the accounting records; or 

- We have not obtained all the information and explanations necessary for the purposes of our audit. 

## _Responsibilities of the 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 they determine is necessary to enable the 

20 



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 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 Charity or to cease operations, or have no realistic alternative but to do so. 

## _Auditor’s Responsibilities for the Audit of the Financial Statements_ 

We have been appointed as auditor under section 151 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

Based on our understanding of the charity, we identified that the principal risks of noncompliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011. 

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. 

We determined that the principal risks were related to management bias in accounting estimates, presentation of separately disclosed items, and management override of controls. 

In response to the risks identified we designed procedures which included, but were not limited to challenging significant accounting estimates including those relating to amortisation and stock and work in progress, agreeing financial statement disclosures to underlying supporting documentation, reviewing trustees’ minutes, evaluating the internal controls, and identifying and testing journal entries. 

21 



spck
There are inherent limitations in the audit procedures described above. The more removed
those laws and regulation5 are from financial transactions, the less likely it is that we would
become aware of non-compliance. Material misstatements that arise due to fraud can be
harder to detect than those that arise from error as they may involve deliberate concealment
or collusion.
A further description of our responsibilities for the audit of the financial statements is located
on the Financial Reporting Council's website at: www.frc.org.uklaudicorsresponsibilities. This
description form5 part of our auditor's reporL
Use of Our Report
This report is made solely to the Group'5 and Charl￿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 5rate to the Group's and Charity's trustees those matters
we are required to State to them in an auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or 2S5ume responsibility to anyone other
than the Group and Charity and their trustees as a bodyi for our audit work. for this repor
or for the opinions we have formed.
Jacob, Cavenagh & Skeet
Chartered Accountants
Statutory Auditor
5 Fiobin Hood Lane
Sutton
Surrey
SMI 2SW
Dated.. Zzloq l Loz L
Jacob, Cavenagh & Skeet is eligible for appolntment as auditor of the charity by virtue of its
eligibility for appointment as auditor of a company under section 1212 of the Companies
Act 2006.
22

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 30 April 2022 

|||Unrestricted|Funds<br>Restricted|Funds|Endowment|Funds|**Total**<br>**2022**|Unrestricted|Funds|Restricted|Funds|Endowment|Funds|Total|2021|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**Notes**|£’000<br>£’000||£’000|£’000|£’000|**£’000**|£’000||£’000|£’000|£’000|£’000|£’000|£’000|
|**Income and endowments from:**||||||||||||||||
|**Donations and legacies**||||||||||||||||
|Donations|||249|4|-|-|**253**||77||31||-||**108**|
|Legacies|||39<br>-                -|-                -|-                -|-                -|**39**||4||-||-||**4**|
|Grants Receivable||**2**|174|20||232|**426**||172||81||227||**480**|
|**Investments**||**3**|1,813<br>-                -|-                -|-                -|-                -|**1,813**||984||-||-||**984**|
|**Charitable activities**||||||||||||||||
|Publishing|||5,874<br>-                -|-                -|-                -|-                -|**5,874**||4,205||-||-|**4,205**||
|**Total income**||**8,149**||**24**||**232**|**8,405**|**5,442**|||**112**||**227**|**5,781**||
|**Expenditure on:**||||||||||||||||
|Raising Funds||**4**|31<br>-                -|-                -|-                -|-                -|**31**||59|-                -|-                -|-                -|-                -||**59**|
|Charitable activities||**4**|7,788|30|-|-|**7,818**||5,025||177|-|-|**5,202**||
|Charitable activities - reorganisational costs||**4**|254<br>-                -|-                -|-                -|-                -|**254**|-                -                -                -|-                -                -                -|-                -                -                -|-                -                -                -|-                -                -                -|-                -                -                -|-                -                -                -|-                -                -                -|
|Total expenditure||**8,073**||**30**|-|-|**8,103**|**5,084**|||**177**|-|-|**5,261**||
|**Income Less Expenditure**|||76|(6)||232|**302**||358||(65)||227||**520**|
|(Losses)/Gains on Investments|||(537)<br>-|-|(1,216)||(1,753)||1,394|-|-||1,286||2,680|
|**Net (Expenditure)/Income**||**(461)**||**(6)**|**(984)**||**(1,451)**|**1,752**|||**(65)**|**1,513**||**3,200**||
|Transfers between funds||-                 -                -                      -|-                 -                -                      -|-                 -                -                      -|-                 -                -                      -|-                 -                -                      -|-                 -                -                      -||13||(13)|-                -|-                -|-                -|-                -|
|Net movements in funds||**(461)**||**(6)**|**(984)**||**(1,451)**|**1,765**|||**(78)**|**1,513**||**3,200**||
|**Reconcilation of funds**||||||||||||||||
|Funds brought forward|||3,633|82||9,094|12,809||1,868||160||7,581||9,609|
|Funds carried forward||**3,172**||**76**|**8,110**||**11,358**|**3,633**|||**82**|**9,094**||**12,809**||



_The notes on pages 26 to 47 form part of these accounts._ 

23 



spck
BALANCE SHEETS
As ai 30 April 2022
GTOIIP
1022
Charlty
2022
Group
202r
Charity
2Q21
Notes
'ooo
'ooo
'oo
£'ooo
Flxed assets
Tangible
Intsnxible a55ets
Invesunw)r5
50
50
16.483
16.483
17.759
17.759
16.533
16,533
17.774
17.762
Currene assets
Sro¢ks
959
760
447
Debt¢*rs
Cash at bank and In hand
1.437
356
2.408
960
303
Totsl CurrEnt Asiets
J. loé
4.3B5
3.076
3.815
Current liabiliti•s
Amoun(s falling due Mthin on* y￿r
11.B041
N•t curv•nt us¢ts
1,002
2,S81
1,255
2.382
Total Ass•ts L•&s Llabilities
17.535
19.029
20,144
Cr•ditDrs: amounts falling due >lyr
13331
(718)
17181
ProviElons far ljibllides
15.8441
{5.8441
(S.S021
IS.SO21
N•t aJs•
12.937
12,809
13.924
The fundin¥ of the charity
Endowm•nt fund
9.094
9.094
Incom¢ f￿*?0$
Re5trictod fund
76
76
82
82
Unr•strlct•d funds
LeEch fund
4.3B7
.387
364
4.?31
11.2981
4.931
G•noral and D¢$lgnared funds
3,172
4.751
3.633
4.7411
rot41 ¢haYlty tunds
11,358
12,937
12.809
13.924
The net deficit of the charity during the year was £987,000 {2021.. £3.517,0¢)O gain). Approved by the
Governing Body
authorised for issue on 22 September 2022 and signed on its behalf by
James Catford, Chair of the Governing Body.
The notes on Pages 26 to 47 fvm7 Part of these accounts.
24

## CONSOLIDATED STATEMENT OF CASH FLOWS 

For the year ended 30 April 2022 

||||**2022**||**2021**|
|---|---|---|---|---|---|
||||**£000**||**£000**|
|**Cash (Used) in Operating Activities**|||**(2,013)**||**(749)**|
|**Cash Flows from Investing Activities**||||||
|Investment Income Received||1,813||984||
|Purchase of Fixed Asset Investments||(232)||(227)||
|**Net Cash Inflow**|||**1,581**||**757**|
|**Cash Flows From Financing Activities**||||||
|New Loan||-||664||
|Repayment on Loans||(370)||(94)||
|Interest Paid on Loans||(29)||(7)||
||||(399)||563|
|**Net Cash (Outflow)/Inflow**|||**(831)**||**571**|
|**Cash and Cash Equivalents Brought Forward**|||1,175||604|
|Bank gifted from CBS|||12||-|
|**Cash and Cash Equivalents Carried Forward**|||**356**||**1,175**|
||||(0)||0|
||Roundings|||||
|**Cash Flow from Operating Activities**||||||
|Net (Expenditure)/Income|||(1,451)||3,200|
|Investment Income Received|||(1,813)||(984)|
|Gift of CBS assets|||(193)||-|
|Amortisation of Goodwill|||28||15|
|Interest Paid on Loans|||29||7|
|Unrealised Losses/(Gains) on Investments|||1,753||(2,680)|
|Decrease in Stock|||55||78|
|Decrease/(Increase) in Debtors|||184||(65)|
|(Increase) in Creditors|||(117)||(21)|
|(Increase) in Provisions|||(488)||(299)|
|**Net Cash Used in Operating Activities**|||**(2,013)**||**(749)**|
|**Analysis of Changes in Net Debt**|**At 1 May 2021**|**At 1 May 2021**|**Cash flows**|**At 30 April 2022**||
|Cash||1,175|(819)|356||
|Bank Loans Falling Due Within One Year||(358)|(15)|(373)||
|Bank Loans Falling Due In More Than One Year||(718)|385|(333)||
|Other Loans||(43)|13|(30)||
|Total||56|(436)|(380)||



_The notes on pages 26 to 47 form part of these accounts._ 

25 



## NOTES TO THE ACCOUNTS 

## 1. Accounting policies 

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: 

## a) Basis of preparation 

- These accounts have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP FRS 102) and Financial Reporting Standard 102 (FRS 102). They are drawn up on the historical cost accounting basis except that investments are carried at fair value. 

The financial statements are presented in sterling and figures are rounded to the nearest thousand. 

The Society for Promoting Christian Knowledge meets the definition of a public benefit entity under FRS 102. 

The Society for Promoting Christian Knowledge is incorporated by Royal Charter in England, with its head office at 36 Causton Street, London SW1P 4ST. 

- b) Going concern 

The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The current position is below the range of the agreed reserves policy of six to nine month’s committed publishing and staff costs. However, the trustees believe that the going concern basis of accounting continues to be appropriate in preparing the annual financial statements. 

## c) Consolidation 

The group financial statements combine the results of the company and its subsidiary undertaking, Inter-Varsity Press (which also produces and distributes Christian books and materials). A separate Statement of Financial Activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by Charities SORP FRS 102. 

## d) Income 

## _i. Turnover_ 

Trading turnover represents the value of sales made during the year, excluding VAT and amounts due to Joint Publishers. 

26 



## _ii. Donations, legacies and grants receivable_ 

- Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received, and the amount of income receivable can be reliably measured. 

Grants received from the William Leech Trusts are credited for the period in which they arise.  Income from William Leech (Investments) Limited is credited to the Statement of Financial Activities in the period in which the income is received. 

Coronavirus Job Retention Scheme income receivable is recognised in the period in which the related staff costs are recognised. 

## _iii. Other income_ 

- Other income comprises Publishing income from co-editions, royalty advances, rights, permissions and sales commission and is accounted for on the accruals basis. 

## e) Expenditure 

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer- term liabilities. Charitable expenditure includes all operating costs relating to SPCK’s Publishing and Worldwide activities. 

- _i. Promotional costs_ 

   - Promotional costs comprise direct fundraising costs and the costs associated with the Society’s website. 

- _ii. Grants payable and project funding_ 

   - Grants payable are taken to the Statement of Financial Activities in the year they are approved and any grants not paid within two years are cancelled unless a continuing need is identified. 

## _iii. Governance costs_ 

- Governance costs are those associated with charity governance requirements and which relate to the general running of the Society. These have been allocated between expenditure on raising funds and charitable activities according to staff time. 

## _iv. Support costs_ 

   - Support costs include the central office functions of general management, information technology, human resources, office management, accommodation and finance.  Costs are allocated to activities on a basis consistent with the use of the resources. 

- _v. Operating leases_ 

   - Rental charges under operating leases are charged on a straight-line basis over the life of the lease. 

27 



## _vi. Staff pensions_ 

- The Society participates in three pension arrangements. Two are part of the Church Workers’ Pension Fund and the third is the UK Government NEST scheme. 

## **The Church Workers’ Pension Fund** 

SPCK participates in the Pension Builder Scheme section of CWPF for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers. 

CWPF has two sections: 

1. the Defined Benefits Scheme 

2. the Pension Builder Scheme, which has two subsections; 

   - a. a deferred annuity section known as Pension Builder Classic, and, 

   - b. a cash balance section known as Pension Builder 2014. 

Pension Builder Scheme 

Both sections of the Pension Builder Scheme are classed as defined benefit schemes. 

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors. 

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65. 

There is no sub-division of assets between employers in each section of the Pension Builder Scheme. 

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102.  This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme.  The pensions costs charged to the SOFA in the year are the interest cost and change in the balance sheet liability 2022: credit of £62,000 (2021: cost of £112,000) and a management charge of £32,400 (2021: £32,400). 

28 



A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022. 

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time. 

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time. 

The legal structure of the scheme is such that if another employer fails, SPCK could become responsible for paying a share of the failed employer’s pension liabilities. 

## **UK Government NEST** 

With effect from 1[st] March 2019 all new employees will be enrolled in the UK Government NEST defined contribution scheme. The assets of this Scheme are held separately from those of SPCK in an independently administered fund and are charged to the SOFA as they become payable in accordance with the Rules of the Scheme. 

- f) Tangible fixed assets 

Tangible fixed assets costing more than £5,000 are stated in the balance sheet at cost less depreciation. These items are depreciated on a straight-line basis to write off their cost over their estimated useful lives. These rates are currently as follows: 

|Fixtures and fittings|5 years|
|---|---|
|Computer systems|3 years|



In view of the administrative costs involved, the effect of inflation on costs and the underlying nature of our charitable purpose, the trustees have adopted a policy that only substantial assets which have a long-term on-going value should be capitalised. 

- g) Intangible fixed assets 

In 2017 the Society purchased the Children’s bibles and study guides from the Scripture Union and regards this as an intangible asset – the outright purchase has been initially recognised at cost and are subsequently carried at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised to the SOFA using the straight-line method over 5 years, which is the shorter of their estimated useful lives and periods of contractual rights. 

29 



During the year the Society acquired Lion Hudson giving rise to goodwill on acquisition amortised over the 5 years in line with contractual arrangements agreed as part of the acquisition. 

- h) Investment assets 

Quoted investments are stated at mid-market value at the balance sheet date. Investment property is initially recognised at fair value at the date of acquisition. Subsequently it is measured at fair value at the reporting date. 

Purchases and sales include transaction fees charged by the investment managers. Other investment securities are valued by reference to underlying assets. Any gain or loss on revaluation or disposal is taken to the Statement of Financial Activities. 

## i) Stocks 

Stocks are valued at the lower of cost and net realisable value. 

## j) Debtors 

Trade receivables and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. 

- k) Cash at bank and in hand 

   - Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit. 

- l) Creditors and provisions 

   - Creditors and provisions are recognised where the charity has a present obligation arising 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. Concessionary loans are included at historic cost. 

## m) Financial instruments 

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## n) Restricted funds 

- Restricted funds are accounted for in accordance with the particular terms of trust arising from the express or implied wishes of donors in so far as these are intended to be binding on the trustees. 

## o) Endowment funds 

Endowment funds are those where the capital is maintained and used to generate income. Income is used for the purpose for which the fund was originally created. 

30 



- p) Designated funds 

   - Designated funds are monies set aside from the general fund by trustees for a specific purpose. These funds are ‘ring-fenced’ and no longer form part of the unrestricted general funds 

- q) Foreign exchange 

   - Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences arising in the ordinary course of business are included in income or expenditure. Assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rates ruling at the balance sheet date. 

- r) Accounting estimates and key judgements Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.  The estimates and judgements that have a significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next financial year are: 

Estimates: 

- (i) Pension provision- - As disclosed in note 12, the charity is a member of the Church Workers Pension Fund.  The provision for deficit contributions due to the Fund has been discounted at 2.6% to reflect the time value of money.  The discount rate is selected by reference to rates used for comparable schemes. For each 0.1% change in the discount rate, the carrying amount of the provision would change by an estimated £28,000. 

- (ii) Earnout provision – As disclosed in note 12, a provision has been included for earnout payments due in relation to the acquisition of Lion Hudson.  The provision is based on the estimated operating profits for the next 4 years.  If the operating profits do not reach the levels expected there could be a material adjustment to the carrying value of the provision and the goodwill on acquisition 

## 2. Grants Receivable 

Grants are received from the two charitable trusts administered by the William Leech Foundation Limited of £174,000 unrestricted and £232,000 endowed (2021: £172,000 unrestricted and £227,000 endowed).  SPCK holds one of the five shares in the William Leech Foundation Limited, which was established to support charitable institutions or trusts in the United Kingdom. William Leech Foundation Limited also acts as a trustee to the two charitable trusts known as the Foundation Trust and the Charity Trust.  No capital may be distributed from either trust. 

The income of the Foundation Trust is distributed in equal proportions to SPCK and four other charities.  The income of the Charity Trust is distributed for charitable 

31 



purposes at the discretion of the trustee, which has, since 1973, adopted the policy of giving most of the income to the same five charities. This policy is reviewed by the Board of the company each year. 

Following a resolution of the Board of Directors of the William Leech Foundation Limited on 15 October 1996, the grants are paid out to the five charities on condition that 57% is invested in shares in William Leech (Investments) Limited at par and treated as an addition to the recipient charity’s capital funds.  The effects of this condition have been reflected in these accounts by showing the grants re-invested in the Leech Fund (see Notes 8 and 14).  This company invests its assets in listed securities. 

In addition, grants were received from other trusts in the year of £20,000 _(2021: £41,000)_ used to fund various charitable projects of the Society, and nil _(2021: £40,000)_ Government Grant from the Coronavirus Job Retention Scheme. 

## 3. Investment income 

The trustees recognise the need for support for the mission of promoting Christian knowledge through the publication and sale of Christian books and resources. Investment income has therefore been used to support this mission. 

||**2022**|2021|
|---|---|---|
||**£000**|£000|
|William Leech|**1,636**|817|
|Other Investment Income|**177**|167|
||**1,813**|984|



## 4. Analysis of total expenditure 

|Analysis of total expenditure|Analysis of total expenditure||||||
|---|---|---|---|---|---|---|
||||||**2022**|2021|
||**Direct**|**Staff**|**Overhead**|**Support**|**Total**|Total|
||**Costs**|**Costs**|**Costs**|**Costs**|**Costs**|Costs|
||**£000**|**£000**|**£000**|**£000**|**£000**|£000|
|Raising Funds|-|31|-|-|**31**|59|
|**Charitable Expenditure**|||||||
|Publishing|2,822|1,948|1,102|1,841|**7,713**|4,877|
|Worldwide|-|21|30|-|**51**|22|
|Other UK Projects|58|-|-|-|**58**|130|
|Assemblies|15|-|-|-|**15**|29|
|Grants|11|-|-|-|**11**|-|
|DBS Pension Scheme|-|(30)|-|-|**(30)**|144|
||2,906|1,939|1,132|1,841|**7,818**|5,202|
|Reorganisational Costs|-|-|150|104|**254**|-|
|Total|2,906|1,970|1,282|1,945|**8,103**|5,261|



32 



||**2022**|2021|
|---|---|---|
|**Support and Governance**|**£000**|£000|
|Staff Costs|**1,032**|459|
|Accommodation|**308**|181|
|Finance|**59**|29|
|IT|**334**|169|
|**Governance Costs**|||
|Auditor's Fees|**18**|22|
|Legal and professional Fees|**63**|28|
|Costs of AGM and trustee travel|**13**|2|
|Staff and Support Costs|**19**|6|
||**1,846**|896|



Reorganisational costs 

During the year the company incurred reoganisational costs of £254,000 consisting of redundancy costs £99,000, £5,000 settlement and restructure costs of £150,000. 

5. Trustees, employees and related parties 

Except as stated below, the trustees and persons connected with them have not received or obtained any remuneration or other financial benefits for the year directly or indirectly from the charity’s funds: 

The aggregate amount of expenses reimbursed to 8 ( _2021: 3)_ trustees to cover travel and subsistence expenditure in attending meetings during the year was £724 _(2021: £1,138)._ 

The total employee benefits of the other key management personnel of the charity were £660,920 _(2021: £628,677_ ). A family member of a key management personnel was paid £nil ( _2021: £8,061_ ) for working on Diffusion projects. 

A grant of nil ( _2021: £10,000_ ) was received from The Jerusalem Trust, of which J Catford’s wife is the Chairperson. 

Transactions with IVP are disclosed in Note 18. 

33 



||**2022**|2021|
|---|---|---|
|**Staff Costs**|**£000**|£000|
|Wages and salaries|2,565|1,752|
|Social security costs|233|171|
|Pension scheme contributions:|||
|PBS (current scheme)|190|125|
|DBS (closed scheme): Note 12|(30)|144|
||**2,958**|2,192|



||**2022**|2021|
|---|---|---|
|**The average number of employees was:**|**Number**|Number|
|Publishing|**53**|41|
|Worldwide and Projects|**1**|2|
|Management and administration|**3**|2|
|Fundraising|**1**|2|
||**58**|47|



The number of employees whose emoluments exceeded £60,000 fell within the following ranges: 

||**2022**|2021|
|---|---|---|
|£60,000 - £70,000|1|2|
|£70,001 - £80,000|2|1|
|£80,001 - £90,000|3|1|
|£90,001 - £100,000|-|1|
|£120,001 - £130,000|1|-|



During the year, contributions were paid into the Pension Builder Scheme (PBS) for three higher-paid employees _(2021: 3);_ the amounts totalled £23,246 _(2021:_ £24,602 _)_ . 

34 



## 6. Tangible Fixed Assets 

|**Tangible fixed assets: CHARITY AND GROUP**|Fixtures,|Fittings and|Computers|**Total**|
|---|---|---|---|---|
|**Cost or valuation**||£'000||**£'000**|
|Balance at 1 May 2021|||411|**411**|
|**Balance at 30 April 2022**|||411|411|
|**Accumulated depreciation**|||||
|Balance at 1 May 2021|||411|**411**|
|Charge for the year|||-|**-**|
|**Balance at 30 April 2022**|||411|411|
|**Net book value at 30 April 2022**|||-<br>|-<br>|
|**Net book value at 30 April 2021**|||-|**-**|



35 



## 7. Intangible fixed assets: Group and Charity 

The intangible asset of Goodwill arose from the purchase of the Children’s Bibles and Study Guides from Scripture Union. Goodwill purchased during the year relates to the acquisition of Lion Hudson 

||**Group**|**Charity**|
|---|---|---|
||£'000|£'000|
|**Goodwill**|||
|**Cost or valuation**|||
|Balance at 1 May 2021|75|15|
|Acquisition in year|63|63|
|Disposals in year|-|-|
|**Balance at 30 April 2022**|138|78|
|**Amortisation**|||
|Balance at 1 May 2021|60|12|
|Charge for the year|28|16|
|Released on disposals|-|-|
|**Balance at 30 April 2022**|88|28|
|**Net book value at 30 April 2022**|50|50|
|**Net book value at 30 April 2021**|15|3|



36 



## 8. Investments: Group and Charity 

||Endowment<br>Funds|Other Funds|Investment|Properties|**2022 Total**|2021 Total|
|---|---|---|---|---|---|---|
||£’000|£’000|£’000||**£’000**|_£’000_|
|At 1 May 2021|9,094|8,665||-|**17,759**|14,852|
|Additions|232|-||245|**477**|227|
|Unrealised (losses)/gains|(1,216)|(537)||-|**(1,753)**|2,681|
|At 30 April 2022|8,110|8,128||245|**16,483**|17,759|
|Total net unrealised gains/(losses)|2,475|2,878||-|**5,353**|6,879|
|Historical Cost 30 April|5,635|5,250||245|**11,130**|10,880|



||**£’000**||
|---|---|---|
|William Leech (Investments) Limited (unlisted)|**10,733**|65.1%|
|M&G Securities Limited – ‘Charifund’ Common Investment Fund (listed)|**1,983**|12.0%|
|Sarasin & Partners LLP – ‘Alpha’ Common Investment Fund (listed)|**1,706**|10.4%|
|Newton Investment Management Ltd – ‘SRI’ Common Investment Fund (listed)|**1,562**|9.5%|
|Investment Properties|**245**|1.5%|
|CCLA - Common Investment Fund|**196**|1.2%|
|Cash awaiting investment in William Leech (Investments) Limited|**58**|0.4%|
||**16,483**|100%|



All investments are held in the UK. 

At the year-end, the investments, excluding those held in William Leech (Investments) Limited, were held in four Common Investment Funds managed on behalf of the Society by its investment advisers, Newton Investment Management Ltd, M&G Securities Ltd, Sarasin & Partners LLP and CCLA. Separate investment funds were maintained for the unrestricted funds and for each of the endowment funds. The investments are financial assets measured at fair value through the Statement of Financial Activities. 

Investment property purchased during the year relates to the acquisition of Catholic Bible School premises and revalued at the point of acquisition by Flude Property Consultants. 

37 



||**2022**<br>**Total**|2021<br>Total|
|---|---|---|
||**£’000**|_£’000_|
|**a) Unrestricted Funds**|||
|**William Leech (Investments) Limited**|||
|Ordinary shares at market value|**4,386**|4,930|
|**Listed Investments At Market Value**|**3,742**|3,735|
||**8,128**|8,665|
|**b) Endowment Funds**|||
|**William Leech (Investments) Limited**|||
|Ordinary shares at market value|**6,346**|7,366|
|Cash awaiting investment in William Leech (Investments)|||
|Limited|**58**|57|
||**6,404**|7,423|
|Trust finds held by the Society|||
|**Van Vryhoven Bequest**|||
|Listed market securities at market value|**517**|506|
|**Other Trust Funds**|||
|Listed market securities at market value|**1,189**|1,165|
||**8,110**|9,094|



## **c) William Leech (Investments) Limited** 

The investments in the Leech Fund and the Leech Capital Fund are represented by shares held in William Leech (Investments) Limited. The Society holds 20% of the company’s ordinary share capital. The Society has no controlling influence over the management of William Leech (Investments) Limited.  As there is no market in these shares, the deemed market value of this investment is assessed as 20% of the net assets based on the company’s management accounts as at 31 March 2022, as follows: 

||**2022**|2021|
|---|---|---|
||**£’000**|£’000|
|Aggregate capital and reserves|**53,665**|61,485|
|Turnover (property and investment income)|**80**|972|
|Net profit/(loss) for the year|**(2,012)**|14,191|



The investment in William Leech (Investments) Limited has been used as security to guarantee the Society’s liability for additional pension contributions to the Church of England Defined Benefits Scheme (DBS). This guarantee is restricted to those shares held at 30 April 2009. 

38 



## **d) Inter-Varsity Press** 

The results for the year 30 April 2022 and balance sheet for the subsidiary, Inter-Varsity Press, are as follows: 

||**2022 Total**|2021 Total|
|---|---|---|
||**£’000**|£’000|
|Net expenditure|**(464)**|(316)|
|Intangible Assets|-|12|
|Current Assets|**526**|581|
|Creditors: Amount falling due within one year|**(2,105)**|(1,708)|
|Net (Liabilities)|**(1,579)**|(1,115)|



## 9. Debtors: amounts falling due within one year 

||**2022 Group**|**2022 Charity**|2021 Group|2021 Charity|
|---|---|---|---|---|
||**£’000**|**£’000**|_£’000_|_£’000_|
|Trade Debtors|**584**|**570**|435|430|
|Amount owed by Subsidiary|-|**1,805**|-|1,320|
|Other Debtors|**455**|**350**|299|251|
|Prepayments|**398**|**398**|407|407|
||**1,437**|**3,123**|1,141|2,408|



## **Legacies and life interests** 

During the year charity was notified of six legacies ( _2021: 4_ ). Where the value of the legacy can be determined with a reasonable degree of accuracy, the income has been recognised.  In the past, SPCK has been bequeathed shares of a freehold property, which is subject to life tenancies. The conditions for recognition of this income have not been met and therefore this legacy is not included as income in the accounts. The estimated value of the legacy is unknown at present. 

39 



10.Creditors: Amounts falling due within one year 

||**2022 Group**|**2022 Charity**|2021 Group|2021 Charity|
|---|---|---|---|---|
||**£’000**|**£’000**|_£’000_|_£’000_|
|Bank Loan|**373**|**373**|358|358|
|Trade Creditors|**391**|**355**|259|223|
|Tax and Social Security|**75**|**75**|55|55|
|Other Creditors|**963**|**704**|1,021|676|
|Accruals|**302**|**297**|128|121|
||**2,104**|**1,804**|1,821|1,433|



## 11.Creditors: Amounts falling due over one year 

||**2022 Group**|**2022 Charity**|2021 Group|2021 Charity|
|---|---|---|---|---|
||**£’000**|**£’000**|_£’000_|_£’000_|
|Bank Loans|**333**|**333**|718|718|
||**333**|**333**|718|718|



During the year ended 30 April 2022 the charity renewed a bank loan of £457,000 from Barclays Bank plc, repayable at an interest rate of 3.63% fixed rate and secured over the Sarasin & Partners LLP investment assets (see note 8) by a fixed and floating charge. 

During the prior year the charity received a Coronavirus Business Interruption Loan of £664,000. It is repayable over 3 years and bears interest at 2.99% above the base rate. 

At 30 April 2022, the bank loans are repayable as follows: 

||**2022 Group**|**2022 Charity**|2021 Group|2021 Charity|
|---|---|---|---|---|
||**£’000**|**£’000**|_£’000_|_£’000_|
|Within one year|**373**|**373**|358|358|
|In 1 - 2 years|**169**|**169**|421|421|
|In 2 - 5 years|**164**|**164**|297|297|
||**706**|**706**|1,076|1,076|



The total financial liabilities measured at amortised cost are £706,000 (2021: £1,076,000). 

40 



## 12.Pension provision: Group and Charity 

|12.Pension provision: Group and Charity Pension provision: Group and Charity|||
|---|---|---|
||**2022**|2021|
|**Pension**|**_£’000_**|_£’000_|
|At 1 May 2021|**5,502**|5,801|
|Paid in year|**(426)**|(411)|
|Interest cost and change in balance sheet deficit liability|**(62)**|112|
|At 30 April 2022|**5,014**|5,502|
|Charitable expenditure|||
|Interest cost and change in balance sheet deficit liability|**(62)**|112|
|Management charge|**32**|32|
||**(30)**|144|



A provision has been made for deficit contributions due to the Church Workers’ Pension Fund (see Note 1 e) vi., Staff Pensions). The provision has been calculated from this information and then discounted at 2.6% (2021: 2.0%).  Payments are being made monthly up to July 2033. The triennial valuation to the end of December 2019 has been completed resulting in no impact on the future payment schedule. 

## Other Provisions 

||**2022 Group**|**2022 Charity**|2021 Group|2021 Charity|
|---|---|---|---|---|
|Provisions|**830**|**830**|-|-|
||**830**|**830**|-|-|



There is an overage clause on the Catholic Bible School property. If it is sold before 2030, a share of the profits are due to Diocese AB. The % due to Diocese AB currently decreases each year with a carrying balance of £62,000. The trustees currently have no plans to dispose of this property. 

As part of the acquisition of Lion Hudson into SPCK Group the company is required to share future operating profits generated over the next 4 years with the previous owners of Lion Hudson. The current projection of profits due amount to £768,000. 

41 



## 13.Other financial commitments and guarantees 

As at 30 April 2022, the outstanding commitments for non-cancellable operating leases fall due as follows: 

|due as follows:|||
|---|---|---|
||**2022 Group**|2021 Group|
||**£’000**|£’000|
|Operating leases due|||
|Within one year|**3**|9|
|2-5 years|**1**|3|
||**4**|12|



The lease payments recognised as an expense during the year were £10,000 (2021: £11,000). The charity also has a lease commitment for the next year for the use of its premises (expires April 2023). The annual amount payable is the income arising on the M&G investment portfolio which is around £94,000 per annum. 

42 



## 14.Endowment Funds: Group and Charity 

Income from the Leech Capital Fund is expendable for the Society’s general purposes at the discretion of the trustees.  Income from the other endowment trust funds is restricted in accordance with the terms of the relevant trusts.  Further details on the endowment trust funds are available from SPCK’s office. 

||Balance at|1 May 2021|Income|Gains/(Loss)|**Balance at**|**30 April**<br>**2022**|
|---|---|---|---|---|---|---|
||£’000||£’000|£’000||**£’000**|
|Leech Capital Fund|7,422||232|(1,251)||**6,404**|
|Van Vryhouven Bequest||506|-|11||**517**|
|Other Trust Funds|||||||
|Bray Endowed Capital||973|-|21||**994**|
|Bray Charity||63|-|1||**64**|
|D’Allone Charity||130|-|2||**132**|
||1,166||-|24||**1,190**|
||||||||
||9,094||232|(1,216)||**8,110**|
||Balance at|1 May 2020|Income|Losses|**Balance at**|**30 April**<br>**2021**|
||£’000||£’000|£’000||**£’000**|
|Leech Capital Fund|6,211||227|984||**7,422**|
|Van Vryhouven Bequest||413|-|93||**506**|
|Other Trust Funds|||||||
|Bray Endowed Capital||795|-|178||**973**|
|Bray Charity||53|-|10||**63**|
|D’Allone Charity||109|-|21||**130**|
|||957|-|209||**1,166**|
||||||||
||7,581||227|1,286||**9,094**|



43 



## 15.Restricted Funds: Group and Charity 

||Balance at|1 May 2021|Income|Expenditure|Transfers|**Balance at**|**30 April**|**2022**|
|---|---|---|---|---|---|---|---|---|
||£’000||£’000|£’000|£’000||**£’000**||
|Other UK Projects||82|24|(30)<br>|-<br>|||**76**|
|||82|24|(30)<br>|-<br>|||76|
||Balance at|1 May 2020|Income|Expenditure|Transfers|**Balance at**|**30 April**|**2021**|
||£’000||£’000|£’000|£’000||**£’000**||
|Other UK Projects||160|112|(177)|(13)|||**82**|
|||160|112|(177)|(13)|||**82**|



Transfers were made in the previous year from Other UK Projects as these projects are now closed. 

Restricted funds represent amounts that were donated to support specific projects such as African Theological Network Press, Assemblies and Ordinands. 

44 



## 16.Unrestricted Funds 

|Group|Balance at<br>1 May 2021|Income|Expenditure|Transfers|Gains|**Balance at**<br>**30 April 2022**|
|---|---|---|---|---|---|---|
||£’000|£’000|£’000|£’000|£’000|**£’000**|
|Leech Fund|4,931|-<br>|-<br>|-|(544)|**4,387**|
|Designated funds 1|200|-<br>|-<br>|200|-|**400**|
|Designated funds 2|200|-<br>|-<br>|(178)|-|**22**|
|Other charitable funds|(1,698)|8,149|(8,073)|(22)|7|**(1,637)**|
|Total|3,633|8,149|(8,073)|0|(537)|**3,172**|
|||0|0|0|0|1|
|Charity|Balance at<br>1 May 2021|Income|Expenditure|Transfers|Gains|**Balance at**<br>**30 April 2022**|
||£’000|£’000|£’000|£’000|£’000|**£’000**|
|Leech fund|4,931|-<br>|-<br>|-|(544)|**4,387**|
|Designated funds 1|200|-<br>|-<br>|200|-|**400**|
|Designated funds 2|200|-<br>|-<br>|(178)|-|**22**|
|Other charitable funds|(583)|6,907|(6,367)|(22)|7|**(58)**|
|Total|4,748|6,907|(6,367)|0|(537)|**4,751**|
||(0)|0|0|0|0|(0)|
|Group|Balance at<br>1 May 2020|Income|Expenditure|Transfers|Gains|**Balance at**<br>**30 April 2021**|
||£’000|£’000|£’000|£’000|£’000|**£’000**|
|Leech Fund|4,122<br>|-<br>|-<br>|-<br>|809|**4,931**|
|Designated funds 1|-<br>|-<br>|-|200|-|**200**|
|Designated funds 2|-<br>|-<br>|-|200|-|**200**|
|Other charitable funds|(2,254)|5,442|(5,083)|(387)|585|**(1,698)**|
|Total|1,868|5,442|(5,083)|13|1,394|**3,633**|
|Charity|Balance at<br>1 May 2020|Income|Expenditure|Transfers|Gains|**Balance at**<br>**30 April 2021**|
||£’000|£’000|£’000|£’000|£’000|**£’000**|
|Leech Fund|4,122|-|-|-|809|**4,931**|
|Designated funds 1|-|-|-|200<br>|-<br>|**200**|
|Designated funds 2|-|-|-|200|-|**200**|
|Other charitable funds|(1,456)|3,910|(3,235)|(387)|585|**(583)**|
|Total|2,666|3,910|(3,235)|13|1,394|**4,748**|



In a Governing Body meeting 4 July 2020 it was agreed to set up designated funds for any additional payments received from William Leech (Investments) Ltd. Designated Fund 1 to set aside the first £200,000 each year which might be required to make additional pension payment contributions under the terms of the Individual Payment Plan agreed with the Church of England Pensions Board; and Designated Fund 2 for the next £200,000 each year, to be set aside for strategic opportunities. 

45 



## 17.Analysis of the Society’s net assets by Fund 

||Unrestricted<br>Funds|Restricted|Funds|Endowment|Funds|**Total**|
|---|---|---|---|---|---|---|
||£’000|£’000||£’000||**£’000**|
|Fund balances at 30 April 2022 are represented by:|||||||
|Tangible fixed assets|-||-||-|**-**|
|Intangible fixed assets|50||-||-|**50**|
|Investments|8,373||-|8,110||**16,483**|
|Stock|1,313||-||-|**1,313**|
|Other current assets|1,717||76||-|**1,793**|
|Current liabilities|(2,104)<br>||-<br>||-|**(2,104)**|
|Long-term liabilities|(333)||-||-|**(333)**|
|Pension Provision|(5,844)||-||-|**(5,844)**|
|Total net assets|3,172||**76**|**8,110**||**11,358**|



Freely available reserves are defined as Unrestricted Funds that are freely available to spend on any of the charity’s purposes.  On this basis, the Society has available reserves of £504,000 at the end of the current period _(2021: £773,000_ ). 

||Unrestricted<br>Funds|Restricted|Funds|Endowment|Funds|**Total**|
|---|---|---|---|---|---|---|
||£’000|£’000||£’000||**£’000**|
|Fund balances at 30 April 2021 are represented by:|||||||
|Tangible fixed assets|-||-||-|-|
|Intangible fixed assets|15||-||-|**15**|
|Investments|8,665||-|9,094||**17,759**|
|Stock|760||-||-|**760**|
|Other current assets|2,234||82||-|**2,316**|
|Current liabilities|(1,821)||-||-|**(1,821)**|
|Long-term liabilities|(718)||-||-|**(718)**|
|Pension Provision|(5,502)||-||-|**(5,502)**|
|Total net assets|3,633||82|9,094||**12,809**|



46 



## 18.Transactions with IVP 

During the year, the following transactions took place with IVP: 

||**2022**|2021|
|---|---|---|
||**£’000**|_£’000_|
|Management charge paid by IVP|**869**|834|
|At the year end the amount owed to SPCK was:|**1,805**|1,320|



- 19.Post Balance Sheet Events 

## Change in Distributor 

On 5[th] May 2022, SPCK signed a new distribution agreement with John Wiley & Sons, which will replace the existing distribution relationships with Macmillan Distribution (from 1[st] September 2022) and Marston Book Services (from February 2023). This is a significant strategic move in putting ex-SPCK/IVP and ex-Lion Hudson titles along with client publishers under one roof. 

Change in Investment Fund Manager 

In summer 2022 the trustees initiated an exercise to restructure all of SPCK’s directly managed investments to a new provider with the objectives: 

- a. improve investment returns and portfolio performance over the longer term; b. align investments with SPCK investment policy; and 

- c. offer access to funds by way of a loan allowing SPCK to unlock its significant investment portfolio without selling its investments 

Based on this remit Cazenove was chosen as SPCK investment fund manager. 

47