Charity Registration Number: 231144 Consolidated Financial Statements for the year ended 30 April 2024 ## Contents A Message from the Chair ....................................................................................................................... 3 A Message from the CEO ........................................................................................................................ 4 Trustees' report (incorporating the Group Strategic Report) ........................................................ 5 Independent Auditor’s Report to the Trustees of SPCK ............................................................... 21 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ................................................. 25 BALANCE SHEETS ................................................................................................................................. 26 CONSOLIDATED STATEMENT OF CASH FLOWS .................................................................... 27 NOTES TO THE ACCOUNTS ........................................................................................................... 28 2 ## A Message from the Chair Thank you for taking the time to read SPCK’s 2024 annual report. The past year, my first full year as chair, has been one of considerable challenges and achievements. Our Finance Director, Anthony Brown, died suddenly on January 29[th] 2024. Anthony was a hard-working and valued member of the Senior Leadership Team. Overseeing SPCK’s finance function, he had taken significant steps to improve the quality of our accounting and to remodel our management accounts (giving us greater visibility of the performance of different aspects of our work). We miss Anthony greatly and will be remembering him at the Book Trade Carol Service, a new event we are launching on December 12[th] 2024. Against this difficult backdrop, I am encouraged that the financial results for 2023-24 show a considerable improvement on previous years. Our sales from publishing are up by 10%, a considerable achievement in a challenging UK marketplace. This shows that we are seeing the benefits of a more focused approach to commissioning, a restructured marketing team and of a huge amount of work that has gone into improving our metadata – the information about our books that feeds out electronically to customers and to potential readers. We finished the year with a much-improved balance sheet. The revaluation of our pension deficit is a major factor in this, but we have also seen good investment results and as a charity our income has exceeded our expenditure for the eighth successive year. Our publishing did not quite reach its objective of making a surplus, but we have solid plans in place for profitable growth in 2024-25 including a new partnership with Ingram in the USA and the adoption of the ESV-CE Bible into the Catholic Lectionary across Britain in Advent 2024. We are most grateful for the range of support we receive at SPCK, from our individual members and donors, through to a range of high-profile individuals. This year we were privileged to hold our AGM at Lambeth Palace, and were most grateful for the encouraging words of our President, Archbishop Justin Welby. Archbishop Justin’s Lent book, _Tarry Awhile_ by Selina Stone, has been another great success story in our partnership. We were also delighted to welcome His Majesty King Charles III as our new Patron, and I have been pleased to hear from our team and our members of how encouraged they were by this news. Thank you for your own interest in SPCK’s work. It has been a great pleasure to meet many of SPCK’s new and longstanding supporters during this, my first full year as Chair, and I look forward to seeing many of you during the year ahead. Stephen East, Chair. 3 ## A Message from the CEO When we acquired Lion Hudson in 2021, I talked about how we wanted to combine the best of SPCK with the best of Lion Hudson. In particular, we wanted to combine SPCK’s ability to invest and our design expertise, with Lion Hudson’s expertise in children’s books and in selling co-editions of colour books to publishers around the world. 2023-24 saw the launch of the flagship product for this new model, Tom Wright’s _My Big Story Bible._ We were able to do exactly what I talked about, bringing SPCK’s ability to invest and design expertise to create a brilliant and vibrant book which we were able to sell to publishers in eight different languages, creating our biggest ever print run for a new title. I first discussed the idea for _My Big Story Bible_ with Tom soon after I started at SPCK ten years ago. That shows what a long-term game book publishing can be! During that time, SPCK has gone from being the UK’s fourth-largest Christian book publisher to the largest. We have also gone from under 10% of our income coming from overseas and digital, to over 50%. This is a huge transformation and it has been a privilege to lead SPCK’s staff team through the years, with the benefit of support from a very knowledgeable and engaged group of trustees. As I look ahead to the next ten years, I am convinced these can be very exciting for SPCK. In the UK, much of the church faces a demographic decline; around the world, Christianity is on the march and in 2050 there are expected to be 33% more Christians than there were in 2010, and these Christians will be more literate and more able to afford books. We see a role for ourselves both in turning around the story in the UK and in being a part of the story around the world. We don’t yet know exactly what that might look like, but the way that SPCK has transformed in the last ten years gives me great encouragement that it is ready for the next decade. As our Chair Stephen East has noted, this has been a tough year behind the scenes. Anthony Brown was a very close and much-missed colleague. It was a privilege to attend his funeral and speak briefly of his time at SPCK and of how many people’s lives he had touched. I am most grateful for the hard work of our talented team at SPCK, and especially for the way that people from all departments have pitched in to ensure that we continue to build on the work that Tony was doing. I’ve also been most grateful for the prayers, support and donations of our long-standing and newer supporters. I hope you enjoy the 2024 annual report! Sam Richardson, Chief Executive 4 ## Trustees' report (incorporating the Group Strategic Report) The Society’s accounts for the year ended 30 April 2024 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 end-users 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. 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 for the overall administration of the Society and for ensuring that Governing Body policy is carried out. 5 ## Committees The main SPCK committees during 2023-24 were: - Board Support Group (formally Standing Committee, 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: _Stephen East_ (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 _Sue Halliday_ - Chair of IVP Publishing Board, Publishing Committee _Dr David Muir_ _Mark Nam_ _Dr Sanjee Perera_ _Elizabeth Renshaw-Ames_ - Audit Committee, Pensions oversight 6 ## _Eric Thompson_ - Audit Committee, Staff/HR oversight _Matthew van Duyvenbode_ – to June2024 ## 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) - Wendy Grisham (Deputy Chief Executive and Group Publishing Director) - Anthony Brown (Finance Director) – died January 2024 - Gary Carruthers (Interim Finance Director) – from February 2024 to October 2024 - Mark Read (Art Director) - Christopher Watkins (Production and Supply Chain Director) - Jenny Beadle (Human Resources Director) - Rowan Miller (Commercial Director) 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. 7 ## People ## **Patron** His Majesty The King (from May 2024) ## **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 8 ## 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 Studio 101, The Record Hall, Baldwins Gardens, London, EC1N 7RJ. 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 2024 was 149 (2023: 147). ## 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|| |**Insurance Brokers**|Scrutton Bland|| ||Fitzroy House,|| ||Crown Street,|| ||Ipswich,|| ||Suffolk, IP13LG|| |**Investment Managers**|Sarasin & Partners LLP|Cazenove| ||Juxon House|1 London Wall Place| ||St Paul’s Churchyard|London| ||London EC4M 8BU|EC2Y 5AU| |**Pension Administrators**|The Church of England|Nest| ||Pensions Board|Nene Hall| ||29 Great Smith Street|Lynch Wood Business Park| ||London|Peterborough| ||SW1P 3PS|PE2 6FY| |**Solicitors**|Wedlake Bell LLP|| ||71 Queen Victoria Street|| ||London EC4V 4AY|| 9 ## Achievements and performance SPCK operates three main business units (General, Kids and IVP) in addition to its charitable projects. ## **General division – Supporting the Church, Engaging with Culture** The General Books Division of the SPCK Group includes two young imprints, Form and Marylebone House, alongside their much older ‘parent’ imprint, SPCK Publishing. **Form** is the Group’s youngest imprint, having begun publishing in July 2021. Its aim is to help readers cultivate spiritual rhythms and practices in their everyday lives, and to make age-old spiritual wisdom accessible for a new generation. Among the notable books that appeared last year in Form were Amy Boucher Pye’s _Transforming Love_ , Pete Portal’s _How to Be (Un)successful_ and John Mark Comer’s bestselling _Practicing the Way: Be with Jesus. Become like him. Do as he did._ **Marylebone House (MH)** is the SPCK Group’s fiction imprint, now incorporating authors who used to be part of the Lion Fiction list. MH publishes contemporary, historical, literary and crime fiction and explores themes that appeal to people who are hungry for perceptive, compassionate writing about human experience. Last year MH released fine new novels in its two most popular series: _The Company of Heaven_ , the latest in the Lindchester Chronicles, by Catherine Fox, and _A Polluted Font_ , the 16th volume in the Chronicles of Hugh de Singleton, by Mel Starr. 10 **SPCK Publishing** continues to build on its long tradition of commissioning books that support, inform and equip Christians in all areas of their life and witness to Jesus. Last year these included books by long-standing SPCK authors such as Steve Chalke ( _A Manifesto for Hope: Ten Principles for Transforming the Lives of Children and Young People_ ), Richard Harries ( _Majesty: Reflections on the Life of Christ with Her Majesty Queen Elizabeth II_ ), Nick Spencer ( _Playing God: Science, Religion and the Future of Humanity_ ), Lauren Windle ( _Notes on Feminism: Being a Woman in a Church Led by Men_ ) and Tom Wright ( _Into the Heart of Romans_ and _Jesus and the Powers_ , co-written with Michael F. Bird). At the same time, we were also delighted to welcome several new authors to our publishing programme, including Ellie Goldstein ( _Against All Odds: My Life with Down Syndrome_ ), Patrick Regan ( _Brighter Days: 12 Steps to Strengthening Your Wellbeing)_ and our major Lent and Advent offerings, sponsored by the Archbishops of Canterbury and York respectively: Selina Stone’s _Tarry Awhile: Wisdom from Black Spiritualty for People of Faith_ and Arun Arora’s _Stick with Love: Rejoicing in Every Tongue, Every Tribe, Every Nation_ ). As those highlights show, SPCK’s General Division is living up to its name as it embraces a wide array of authors from different backgrounds and traditions, writing on a rich diversity of subjects, in a variety of genres and in ways that will appeal to readers right across the theological spectrum – and beyond! 11 ## **Kids Publishing Highlights, May 2023-April 2024** June 2023 saw the publication of Roger McGough's picture book All Aboard the Ark - a lively rhyming picture book about Noah and the animals on the ark. We were delighted to welcome such a high-profile author to our lists. The new Christmas titles for 2023 included the stunning picture book of a Nativity story retelling, The Christmas Swallow by Ben Harris, which also published in the German language at the same time. We also reissued some classic Christmas-themed folktales, Papa Panov's Special Day by Mig Holder (first published in 1988) and Babushka by Dawn Casey, and new activity books for different ages including Wow! Christmas by Martha Shrimpton with 36 innovative activities. February 2024 saw the publication of new hardback and paperback editions of The Children's Bible in 365 Stories - one of our top-selling Children's Bibles that's been on sale non-stop since 1985. And we also published tv presenter Joanna Adeyinka-Burford's first children's book What's Up - a fun devotional for 7-11 year olds. March was a very exciting month - after much time and hardwork the first children's book by theologian Tom Wright published, My Big Story Bible. Simultaneously editions were published in US, Korea, France, Netherlands, Portugal, Poland, Germany, Denmark and Japan. Other titles that published over the year, which are great additions to the children's list, include tv presenter Gemma Hunt's See! Let's be Me , her second picture storybook about emotions and behaviour, the Candle Youth Bible with 90 extracts from NLT anglicised translation each accompanied with a short engaging commentary, and families can capture the 12 treasured moments of their child's special occasions in a beautifully illustrated set of special occasion gift books: A Baptism/Christening/Dedication Gift Prayer and Memory Book. ## **IVP Publishing Highlights, May 2023-April 2024** The May ’23 to April ’24 period has seen some exciting publishing from IVP, with milestones such as the completion of the Bible Speaks Today refresh, major popular and academic books, and the first New Studies in Biblical Theology volume (number 63!) under the joint editorship of Benjamin J. Gladd. All of this resulted in a strong year with sales up by 7%. In May 2023 existing IVP author John Valentine published his first Apollos title, a major biblical-theological study of church planting. _Jesus, the Church and the Mission of God_ received strong endorsements from ministry figures such as Nicky Gumbel and Paul Harcourt, and academics like Greg Okesson and Winfield Bevins. This magisterial book fills an important gap in the literature. In June we published our second book by Ros Clarke (whose 2022 IVP Lenten debut _Forty Women_ continues to sell well), _Human_ , the Keswick theme book for 2024. Interest in the book built from well before publication, with the PR team securing a range of exciting media opportunities for Ros. We also published two books by Keswick stalwart, and American in Hungary, Ted Turnau. His ‘Oasis of Imagination’ is a major work of cultural engagement, whilst the shorter ‘Imagination Manifesto’ was coauthored with Jazz singer Ruth Naomi Floyd, distilling the core ideas and opening it up to a wider audience. Andy Bannister’s _How To Talk About Jesus Without Looking Like an Idiot_ , licensed from Tyndale in the US, has been well received since August, and continues to grow IVP’s specialism in evangelism. _Marsh Moyle’s Rumours of a Better Country_ published in September – launching in hardback seems to be paying off for this thoughtful book by a well-respected author. Catherine Campbell’s _Consider Him_ , a brand new 365 Day Devotional, has been one of IVP’s most commercially successful books this year. Also publishing in September was the first New Studies in Biblical Theology (NSBT) volume co-edited by B. J. Gladd, James Hely Hutchinson’s ‘Answering the Psalmist’s Perplexity’, which has got off to a strong start. The NSBT series will be changing 13 publishing partner in 2025, which will lead to strong revenue for frontlist titles in this wellrespected series. Highlights in the early part of 2024 include Sharon Hasting’s mental health recovery book, ‘Tending to My Thoughts’, and the penultimate Bible Speaks Today (BST) Themes volume, ‘The Message of the Kingdom of God’, by popular scholar and author T. Desmond Alexander. April saw a publishing highlight that is genuinely historic – the final batch of BST Old Testament refreshes, meaning that for the first time in four years the commercial department can sell full Bible, Old and New Testament sets, in the impressive new visual style. Under the leadership of Thomas Creedy, promoted to IVP Publishing Director, the IVP list finds itself well positioned for growth in future years. The investment in two major new series, the Hearing God’s Voice Bible commentary from IVP and Reading the Bible With The Apostles from Apollos, confirms IVP’s commitment to publishing the very best evangelical scholarship for personal and academic study. ## **Charitable Projects** While in recent years SPCK has focused increasingly on developing its unique position in commercial publishing, our fundraising continues to enable us to run a range of projects supported by donations from our members and from charitable trusts. The **Assemblies** Website at Assemblies.org.uk remains the go-to place for anyone delivering collective worship into schools. We are delighted to have set up a new partnership with the Church of England’s racial justice unit, which will see the Assemblies website delivering content to schools across the country for Black History Month. The **Home Groups** website at HomeGroups.org.uk remains a major resource for home group leaders. We have significant plans in the coming year to reposition Home Groups as the home of free audio and video courses, incorporating the York Courses archive and new courses around titles such as _What is a Christian?_ by Rowan Williams and _Wild Bright Hope_ , the Archbishop of Canterbury’s Lent Book for 2025. The **Prison Fiction** programme continues to be a unique resource in assisting prisoners across the country with their literacy. It’s also been encouraging to see many of the Prison Fiction authors such as Alex Wheatle go on to publish high-profile commercial titles. It was all change at the **Catholic Bible School** as David and Sarah Beresford moved on following many years of productive in-person ministry. The Bible School’s focus has shifted to digital resourcing, and we are launching in November a new app for the ESV-CE Bible, including David and Sarah’s brilliant recording of the whole Bible. 14 ## Financial review The consolidated result shown on page 24 shows an increase in income, from £6,341,000 in 2022-23 to £6,854,000 in 2023-24. This is primarily due to the 10% increase in publishing sales during the year, with the publishing income figure having increased to £5,649,000 from £4,987,000 in 2023. The focus of 2023-24 was to bring the publishing trading back towards the breakeven to allow the future years to be profit making. The reduction in overhead continued in 2023-24 with greater focus was on the operational IT software which was causing finance operational problems. Significant work continues in the commercial areas to find new sales opportunities, especially in digital and export markets, which is clear from the consolidated revenue numbers’ improvement versus prior year. The commissioning approach continues to be more around focus than volume, with a focus on reducing the number of titles which sell poorly and hence are loss-making and fail to deliver our mission of promoting Christian knowledge. The continued focus on these three challenges is key to helping us reach our operating targets. After the disappointing business performance in 2022-23 which was not sustainable, 2023-24 has delivered a marked improvement and we enter 2024-25 with a much-reduced cost base and a strong publishing list so that the 2024-25 budgeted position of a small surplus from publishing activities feels more achievable. In addition, we have had confirmation of the revaluation of the pension deficit, which has materially reduced our liabilities, and strengthens our future cash flow and balance sheet positions. We also enter 2024-25 with an increased asset base. We saw an increase in value of our investments of £1,072,000, driven by strong growth towards the end of 2023-24 period in both of our key investment portfolios; The William Leech (Investments) Ltd investment pool and the Sarasin and Cazenove investment pools. The WLI investment is held for the long-term and so variations such as this are expected, from time to time, and we remain most grateful for the efforts of the Leech board in managing this investment. To support the final transitional year of moving from a loss making position in the publishing operations towards surpluses, we extended our loan in 2023-24 with the Cazenove facility to support the final strategic changes in personnel structure and the key changes in operational systems and the expansion plans for the US and International markets. We look forward to a positive drive in 2024-25 with a budget that is felt achievable and optimism that the above significant changes we have carried out in 2023-24 and prior years are the stepping stones for positive future results. ## Investment policy and performance The value of the Society’s investments at 30 April 2024 was £16,157,000 ( _2023: £_ 14,861,000). Of this amount, £10,665,000 ( _2023:_ £9,529,000) represented the value of shares and cash awaiting investment in William Leech (Investments) Ltd, £210,000 ( _2023:_ £210,000) in 15 investment property and £5,282,000 ( _2023: £5,122,000_ ) the value of other listed investment. Overall, the SPCK portfolio showed a net gain of £1,072,000 for the year ( _2023: Loss of £1,881,000_ ). 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. April 2024 saw a significant movement in the investment markets in that calendar month, which was to our benefit and with our financial year end being 30[th] April, this saw our overall investment portfolio position end in a stronger position than had been expected given the performance over the prior 11 months of 2023-24. The same period the FTSE 100 Share index increased overall by 7.9% _(2023: 4.7% increase)._ 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 2024 IVP Ltd accounts shows a net deficit in reserves of £2,050,000 (2023: £1,933,000). With the transfer of the company to SPCK, there is an on-going commitment from SPCK to support IVP Ltd’s aims and objectives and to underwrite the current deficit in the reserves. The trustees also recognise that IVP Ltd reported a deficit of £117,000 (2023: £354,000) for the year ended 30 April 2024 but are aware that plans are underway to improve profitability of the whole organisation (including IVP). ## Reserves The total funds held by the Society at the end of the reporting period were £13,401,000 _(2023: £_ 9,924,000 _)._ We have made a provision of £1,465,000 ( _2023: £_ 4,224,000) for deficit contributions due to the Church Workers’ Pension Fund, incorporating a revaluation following the results of the triennial actuarial review in 2022. Many of these funds are endowed 16 or restricted, and therefore the unrestricted funds available to the Society at the end of the reporting period were £5,280,000 _(2023: £2,597,000)_ . 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 at the end of the current period of £1,683,000 _(2023: £2,226,000 adjusted_ ). The reserves level is within 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 is 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). Although the balance sheet shows a net current liability, the free reserves position is within the range of the agreed reserves policy of 6-9 months committed publishing and staff costs, the underlying strength of the balances sheet is £13.4m of which £5.3m can be made available to improve cash reserves. ## 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 quarterly 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, on which we have a _cautious_ risk appetite. These risks are mitigated by a detailed new exercise in process mapping, 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, reserves policy, credit control, and engagement with Church of England Pensions Board supported by professional legal, actuarial and financial advice. 17 - 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. - Political, environmental, social and technological risks, on which we have a _cautious_ risk appetite. These risks are mitigated by diversification of markets and business models, and by proactive steps to stay in touch with developments. 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 twice-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. - 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. Further steps have been taken since to reduce the cost base, including the move to a new single office location, the ending of duplicated IT contracts from the merger, and the non-replacement of some leavers. - Risk from poor cost controls, resulting in cashflow crisis. Mitigations: a new purchase order system implemented in 2022-23, and a new series of cost controls implemented in June 2023. - Inability to meet contributions to historic pension liabilities. Mitigations: a new plan agreed with the Church of England Pensions Board (CEPB) in spring 2024, based on the valuation dated 31 December 2023, has significantly reduced our payments for 2024-25; we continue to work hard to engage with CEPB and are supportive of their plans for the scheme which may have a significant further positive effect if they come to fruition. - Macro-economic environment, in particular global events and changes of government, could have an impact on SPCK’s investments, pension or sales income. Mitigations: SPCK regularly reviews its investment management policy (most recently in summer 2022) and currently spreads its investments across two 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 deficit; SPCK is taking significant steps to increase the international scope of its work so that we are less reliant on the UK economy. 18 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) are £1,683,000 _(2023: £2,226,000 adjusted_ ) which is within the target range of £1,300,000 to £2,000,000. Notwithstanding, we continue to monitor our performance closely in the expectation of maintaining within or above the targeted reserves policy range ## Fundraising Disclosures During 2023-24 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. In 2023-24 SPCK had one community fundraiser (a member of staff) and we ensured that their activities followed the Code of Fundraising Practice. Our fundraising complaints procedure can also be found on our website. 19 spck on The trustees are responsible for preparing the TNstee5' Report and the financbal $(a￿MentS n accordance with applicab￿ law aTrJ United Kingdom Accounting s￿ndards including Flnancial Reporting Standard 102.. The Financial Reporring Standard applicable ￿ the UK and Republic of Ireland (uni￿ Kingdtyn Genwalty Accepted Accounting frhctice>. The Liw applkable to charities in E*nd & Wale5 require5 the tws¢ees to prepare finanaal statements for each financial year which give a tn￿ and fair view of the stste of affairs of the charity and of the inc¢)me and expenditure of the charity for that per￿. In preparing ihe5e financial statement& rhe trustees are requlred to: Selec¢ suitable accounting policies and appty th￿1 C￿sIS￿ndY. Observe the methods and principles In the Chariues SORP. Make judgments and accounting e5timate5 that are reascrf4ble and prudent State whether applicable accounting standards have been followed, suty'ect to any ma(erial deparnire5 disclosed and expLiined in the financial statemenu. arKI. Prepare the financial statements on the going ¢¢)n¢ern basi5 unle55 it is inappropriate to presume that the charity wll ¢¢￿￿nue In buslness. The trustees are reSP￿sIble for maintainlng prcper accounting records which dixlose with reasonable accuracy at any time the financial position of the ¢harity and enable them to ensure that (he financial statements comply with the Chariues Acr 2011, the Charity (Accounts and Reports) Regulations 2(K)8 and the provisions of the trust deed. They are 3150 responsible for feguarding ihe assets ol the charity and hence for faking reasonable steps for the prevention and detertion of fraud and other irregularities. The trustees are responsible for the mainrenance and integricy of the chariry and financial information incliTrded on the charity. website. LtyslatS￿ In the United Kingdom governing the preparatK)n and dlssemlnation of financial statemenrs may drffer from legithticffj in other jurisdictions. The trustees. report for the year ended 30 April 2024 approved by the trustee5 on 7611 L£%Ltr 2024 and si￿ed on their behalf by St*hen EasL Chair of the Governing Body The Society for Promoting Christian KnowtedF Studio 101. The Record Hall. Baldwins Gardens. London. EC I N 7RJ 20 ## 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 2024 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 2024 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. 21 ## _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 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. 22 ## _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 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. 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 the pension provision discount rate and valuation of stock and work in progress, agreeing financial statement disclosures to 23 spck underlying supporting documentation. evaluating the internal controls. reviewing trustees, minU￿S and identifyin8 and cesring journal entries. There are inherent limitations in the audit procedures described above. The more removed those lav￿ and regulation5 are from financial trdnsactions. the less likely it is that we would become aware of non-compliance. Macerial misstaiements 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 aL www.frc.or8.ukJauditorsresponsibilities. This description forms part of our auditor's reporL Use of Our Report This report is made solely to the Group's and Charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Repons) Regulations 2008. Our audit work has been undertaken so that we might state co the Group's and Charicy'5 trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibiliry to anyone other than the Group and Charity and their trustees as a body. for our audit worl for this reporL or for the opinions we have formed. JoLots, CaA* + f Jacob Cavenagh & Skeet Charcered Accountants Statutory Auditor 5 Robin Hood Lane Sutton Surrey SMI 2SW Dated.. 3 i OcL**Income and endowments from:**
**Donations and legacies**
Donations
Legacies
Grants Receivable
**2**
**Investments**
**3**
**Charitable activities**
Publishing
**Total income**
**Expenditure on:**
Raising Funds
**4**
Charitable activities
**4**
Charitable activities - reorganisational costs
**4**
**Total expenditure before DBS pensions**
**Income Less Expenditure**
DBS Pension Cost
**12**
DBS Pension Revaluation
**12**
Net Income/(deficit) before Gains/(Losses) on Investments
Gains/(Losses) on Investments
**Net Income/(Expenditure)**
Transfers between funds
Net movements in funds
**Reconcilation of funds**
Funds brought forward
**Funds carried forward**|Unrestricted
Funds
Restricted
Funds
Endowment
Funds
**Total**
**2024**
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
**Total**
**2023**
£’000
£’000
£’000
**£’000**
£’000
£’000
£’000
**£’000**
49
- -**49**
70
- -**70**
33
- -**33**
58
- -**58**

204
- 277**481**
190 75 257
**522**

642
- -**642**
704
- -**704**
5,649
- -**5,649**
4,987
- -**4,987**
**6,577**
**- 277 6,854**
**6,009 75 257**
**6,341**

16
- -**16**
22
- -**22**
6,506 40
-**6,546**
5,963 32
-**5,995**

- - -**-**
193
- -**193**
**6,522 40**
**- 6,562**
**6,178 32**
**- 6,210**
**55 (40) 277 292**
(169)
43 257
**131**
(253)
-
-**(253)**
316
**316**
2,366
-
-**2,366**
- - -
**-**
**2,168 (40) 277 2,405**
**147 43 257**
**447**
515
- 557**1,072**
(722)
- (1,159) **(1,881)**
**2,683 (40) 834 3,477**
**(575) 43 (902) (1,434)**
- - - -
- - -
**-**
**2,683 (40) 834 3,477**
**(575) 43 (902) (1,434)**
2,597 119 7,208
**9,924**
3,172 76 8,110
**11,358**
**5,280 79 8,042 13,401**
**2,597 119 7,208**
**9,924**| |---|---| _The notes on pages 28 to 49 form part of these accounts._ 25 spck BALANCE SHEErs As at 30 April 2024 Tard i).•Jsi 14.J Jii *$> The nec surplus of the charity duriry year was £3.477.(Q)12023.. deficit of £1.0￿.L￿)l. Approved by the Governing Body and au¢horised for issue on CL4er 2024 and signed on i¢5 behall by Stephen Easc Chair of the Goverring W. The notes on Poges 28 to q fvm7 Pon of these occounl 26 ## CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 April 2024 |**Cash (Used) in Operating Activities**
**Cash Flows from Investing Activities**
Investment Income Received
Purchase of Tangible Fixed Assets
Proceeds from sale of Investments
Purchase of Fixed Asset Investments
**Net Cash Inflow**
**Cash Flows From Financing Activities**
New Loan
Increase in overdraft
Repayment on Loans
Interest Paid on Loans
**Net Cash (Outflow)/Inflow**
**Cash and Cash Equivalents Brought Forward**
**Cash and Cash Equivalents Carried Forward**
**Cash Flow from Operating Activities**
Net Income / (Expenditure)
Investment Income Received
Depreciation of Tangible Assets
Amortisation of Goodwill
Interest Paid on Loans
Unrealised (Gains) / Losses on Investments
Decrease in Stock
Decrease/(Increase) in Debtors
Increase in Creditors
Decrease in Provisions
**Net Cash Used in Operating Activities**
**Analysis of Changes in Net Debt**
Cash
Bank Loans Falling Due Within One Year
Bank Loans Falling Due In More Than One Year
Total|**2024**
**2023**
**£000**
**£000**
(558)
(1,467)
642
704
(70)
-
53
3,545
(277)
(3,802)
348
447
400
750
131
315
(177)
(388)
(74)
(21)
280
656
**70**
**(364)**
50
414
**120**
**50**
Roundings
3,477
(1,434)
(642)
(704)
19
-
(46)
(587)
74
21
(1,072)
1,881
82
85
126
(330)
186
380
(2,762)
(779)
**(558)**
**(1,467)**
**At 1 May 2023**
**Cash flows At 30 April 2024**
**£000**
**£000**
**£000**
50
70
120
(1,251)
(500)
(1,751)
(148)
148
0
(1,349)
(282)
(1,631)| |---|---| _The notes on pages 28 to 49 form part of these accounts._ 27 ## 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 Studio 101, The Record Hall, 16-16A Baldwins Gardens, London, EC1N 7RJ - b) Going concern The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Although the balance sheet shows net current liabilities, the free reserves position is within the range of the agreed reserves policy of six to nine month’s committed publishing and staff costs, the underlying strength of the balances sheet is £14.9m of which £5.3m can be made available to improve cash reserves. On this basis 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. 28 - _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. ## _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. 29 ## _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 (DBS) participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the 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. ## **Defined Benefits Scheme** The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries. For funding purposes, DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns. The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. This does not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool. The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pensions costs charged to the SoFA during the year are the interest cost and changes in balance sheet liability 2024: debit of £221,000 (2023: credit of £349,000) and management charge of £32,400 (2023: £32,400). If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool, further transfers may be made from the Life Risk Pool to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board having taken advice from the Actuary. 30 A valuation of DBS is carried out once every three years. The most recently finalised valuation was carried out as at 31 December 2022. In this valuation, the Life Risk Section was shown to be in surplus, and the overall deficit in the DBS has reduced. Following the 2019 valuation, the Employer entered into an agreement with the Church Workers Pension Fund to pay expenses of £35,600 per year. In addition, deficit payments of £385,842 per year were agreed for 13.00 years from 1 April 2021 in respect of the shortfall in the Employer sub-pool. Following the 2022 valuation, payments will only be required until 31 July 2027. This obligation has been recognized as a liability in the financial statements (see note 12). The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of that employer’s pension liabilities. It was encouraging to see that in October 2024 the Church of England Pensions Board announced the completion of a “Buy-in” of the remaining liabilities of the Church Workers Pension Fund thus removing investment and longevity risks. In due course the effect of removing these risks on future payments to CWPF will become clearer. 31 ## **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 contributions payable of £121,000 (2023: £145,000). 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 10.1% following improvements in the funding position over 2022. 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. 32 ## **UK Government NEST** With effect from Ist March 2019 all new employees are 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. In 2022 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. 33 - 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. - 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: Estimated Pension provision - As disclosed in note 12, the charity is a participating employer of the Church Workers Pension Fund. The provision for deficit 34 contributions due to the Fund has been discounted at 5.15% to reflect the time value of money. The discount rate is selected by reference to corporate bond rates at the balance sheet date. For each 0.1% change in the discount rate, the carrying amount of the provision would change by an estimated £20,000. ## 2. Grants Receivable Grants are received from the two charitable trusts administered by the William Leech Foundation Limited. 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 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 15). This company invests its assets in listed securities. In addition, no grants were received from other trusts in the year _(2023: £75,000)_ used to fund various charitable projects of the Society. ## 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. |William Leech
Other Investment Income|**2024**
2023
**£000**
£000
447
517
195
187| |---|---| ||642
704| 35 ## 4. Analysis of total expenditure |Raising Funds
**Charitable Expenditure**
Publishing
Other UK Projects
Reorganisational Costs
Total
**Support and Governance**
Staff Costs
Accommodation
Finance
IT
**Governance Costs**
Auditor's Fees
Legal and professional Fees
Costs of AGM and trustee travel
Staff and Support Costs|**2024**
2023
**Direct**
**Costs**
**Staff**
**Costs**
**Overhead**
**costs**
**Support**
**Costs**
**Total Costs**Total Costs
**£000**
**£000**
**£000**
**£000**
**£000**
£000
- 16
- -**16**22
- 16
- -**16**22
3,770 1,606
- 1,149**6,525**5,963
- - 20 1**21**32
3,770 1,606 20 1,150**6,546**5,995
- - - -**-**193
- - - -**-**193
3,770 1,622 20 1,150**6,562**6,210
**2024**
2023
**£000**
£000
**473**458
**21**205
**155**15
**381**336
**29**19
**44**60
**7**30
**40**33
**1,150**1,156|**2024**
2023
**Direct**
**Costs**
**Staff**
**Costs**
**Overhead**
**costs**
**Support**
**Costs**
**Total Costs**Total Costs
**£000**
**£000**
**£000**
**£000**
**£000**
£000
- 16
- -**16**22
- 16
- -**16**22
3,770 1,606
- 1,149**6,525**5,963
- - 20 1**21**32
3,770 1,606 20 1,150**6,546**5,995
- - - -**-**193
- - - -**-**193
3,770 1,622 20 1,150**6,562**6,210
**2024**
2023
**£000**
£000
**473**458
**21**205
**155**15
**381**336
**29**19
**44**60
**7**30
**40**33
**1,150**1,156| |---|---|---| |||| |||**1,150**1,156| 36 ## 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 5 ( _2023: 7)_ trustees to cover travel and subsistence expenditure in attending meetings during the year was £2,006 _(2023: £2,177)._ The total employee benefits of the other key management personnel of the charity were £572,000 _(2023: £632,000_ ). Transactions with IVP are disclosed in Note 19. |**Staff Costs**
Wages and salaries
Social security costs
Pension scheme contributions:
PBS (current scheme)|**2024**
**2023**
**£000**
**£000**
1,784
2,152
189
230
121
145| |---|---| ||2,094
2,527| |**The average number of employees was:**
Publishing
Management and administration
Fundraising|**2024**
**2023**
**33**48
**8**3
**1**1| |---|---| ||42
52| The number of employees whose emoluments exceeded £60,000 fell within the following ranges: |||**2024**||**2023**|| |---|---|---|---|---|---| |£60,000|- £70,000||3||1| |£70,001|- £80,000||1||-| |£80,001|- £90,000||3||3| |£90,001|- £100,000||2||1| During the year, contributions were paid into the Pension Builder Scheme (PBS) for three higher-paid employees _(2023: 3);_ the amounts totalled £18,447 _(2023:_ £25,123 _)_ . During the year, SPCK made staff redundancies amounting to £25,510. 37 ## 6. Tangible Fixed Assets |**Tangible fixed assets: CHARITY AND GROUP**
**Cost or Valuation**
Balance at 1 May 2023
Additions in year
**Balance at 30 April 2024**
**Accumulated Depreciation**
Balance 1 May 2023
Charge for the year
**Balance at 30 April 2024**
**Net book value as at 30 April 2024**
**Net book value as at 30 April 2023**|Fixtures,
Fitting and
Computers
**Total**
£'000
**£000**
411
**411**
70
**70**
**481**
**481**
411
**411**
19
**19**
**430**
**430**
51
**51**
-
**-**| |---|---| ## 7. Intangible fixed assets: Group and Charity The intangible asset of Goodwill arose from the purchase of the Children’s Bibles, Study Guides from Scripture Union and the acquisition of Lion Hudson. |**Goodwill**
**Cost or Valuation**
Balance at 1 May 2023
Acquisition in year
**Balance at 30 April 2024**
**Amortisation**
Balance 1 May 2023
Provision for the year
**Balance at 30 April 2024**
**Net book value as at 30 April 2024**
**Net book value as at 30 April 2023**|**Group**
£'000
(109)
-
(109)
29
(46)
(17)
(92)
(138)|**Charity**
£'000
(169)
-| |---|---|---| |||(169)| |||(31)
(46)| |||(77)| |||(92)| |||(138)| |||| 38 ## 8. Investments: Group and Charity |At 1 May 2023
Additions
Disposals
Unrealised gains/(losses)
At 30 April 2024
Total net unrealised gains/(losses)
Historical Cost 30 April
Unrealised gains/(losses)
Realised gains
William Leech (Investments) Limited (unlisted)
Cazenove Fund
Sarasin & Partners LLP – ‘Alpha’ Common Investment Fund (listed)
Investment Properties
Cash awaiting investment in William Leech (Investments) Limited|Endowment
Funds
Other Funds
Investment
Properties
**2024 Total**
2023 Total
£’000
£’000
£’000
**£’000**
_£’000_
7,208 7,443
210**14,861**
16,483
277
- -**277**3,802
- (43)
-**(43)** (3,741)
557
505
-**1,062** (1,683)|Endowment
Funds
Other Funds
Investment
Properties
**2024 Total**
2023 Total
£’000
£’000
£’000
**£’000**
_£’000_
7,208 7,443
210**14,861**
16,483
277
- -**277**3,802
- (43)
-**(43)** (3,741)
557
505
-**1,062** (1,683)| |---|---|---| ||8,042 7,905
210**16,157**
14,861|| ||1,013 2,310(35)
**3,288**2,269|| ||7,029 5,595 245**12,869**
**12,592**|| ||557
505
-
-
10
-|**1,062**(1,683)

**10**
-| ||557 515
-|**1,072** (1,683)| |||**£’000**
**10,596**
65.6%
**3,563**
22.1%
**1,718**
10.6%
**210**
1.3%
**70**
0.4%| |||**16,157**
100%| All investments are held in the UK. The investments are financial assets measured at fair value through the Statement of Financial Activities. Investment property relates to Catholic Bible School premises. 39 |**a) Unrestricted Funds**
**William Leech (Investments) Limited**
Ordinary shares at market value
**Listed Investments At Market Value**
**b) Endowment Funds**
**William Leech (Investments) Limited**
Ordinary shares at market value
Cash awaiting investment in William Leech (Investments)
Limited
Trust finds held by the Society
**Van Vryhoven Bequest**
Listed market securities at market value
**Other Trust Funds**
Listed market securities at market value|**2024**
**Total**
2023
Total
**£’000**
_£’000_
**4,327**3,960
**3,578**3,482| |---|---| ||**7,905**7,442| ||**6,268**5,504
**70**64| ||**6,338**5,568| ||515 495
**1,189**1,145| ||**8,042**7,208| ## **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 audited accounts as at 31 March 2024, as follows: |Aggregate capital and reserves
Turnover (property and investment income)
Net profit/(loss) for the year|**2024**
2023
**£’000**
£’000
**52,980**47,323
**45**34| |---|---| ||**6,536** (5,038)| 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. 40 ## **d) Inter-Varsity Press** The results for the year 30 April 2024 and balance sheet for the subsidiary, Inter-Varsity Press, are as follows: |Press, are as follows:|| |---|---| |Net expenditure
Current Assets
Creditors: Amount falling due within one year
Net (Liabilities)|**2024 Total**
2023 Total
**£’000**
£’000
**(117)** (354)| ||**470**507
**(2,520)** (2,440)| ||**(2,050)** (1,933)| ## 9. Debtors: amounts falling due within one year |Trade Debtors
Amount owed by Subsidiary
Other Debtors
Prepayments|**2024 Group**
**2024 Charity**
2023 Group
2023 Charity
**£’000**
**£’000**
_£’000_
_£’000_
**1,172**
**966**
1,015
851
**-**
**185**
-
169
**433**
**393**
387
284
**36**
**36**
365
365| |---|---| ||**1,641**
**1,580**
1,767
1,669| ## **Legacies and life interests** During the year charity was notified of one legacy ( _2023: 6_ ). 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. 41 ## 10.Creditors: Amounts falling due within one year |Bank Loans and overdrafts
Trade Creditors
Tax and Social Security
Other Creditors
Accruals|**2024 Group**
**2024 Charity**
2023 Group
2023 Charity
**£’000**
**£’000**
_£’000_
_£’000_
**1,751**
**1,751**
1,251
1,251
**307**
**299**
651
579
**45**
**45**
55
55
**1,695**
**1,424**
1,135
869
**293**
**287**
313
313| |---|---| ||**4,091**
**3,806**
3,405
3,067| ## 11. Creditors: Amounts falling due over one year |Bank Loans|**2024 Group**
**2024 Charity**
2023 Group
2023 Charity
**£’000**
**£’000**
_£’000_
_£’000_| |---|---| ||**2**
**2**
148
148| During the year ended 30 April 2024 the charity took out an additional loan with Cazenove bringing the total to £1,150,000. The loan is secured on investment assets held by Cazenove and is repayable on demand and bears interest of variable base rate + 2%. At 30 April 2024, the bank loans are repayable as follows: |Within one year
In 1 - 2 years|**2024 Group**
**2024 Charity**
2023 Group
2023 Charity
**£’000**
**£’000**
_£’000_
_£’000_
1,751
1,751
1,251
1,251
2 2
148
148| |---|---| ||**1,753**
**1,753**
1,399
1,399| The total financial liabilities measured at amortised cost are £1,753,000 (2023: £1,399,000). 42 ## 12. Pension provision: Group and Charity |At 1 May 2023
Paid in year
Interest cost and change in balance sheet deficit liability
Revaluation
At 30 April 2024
Charitable expenditure
Interest cost and change in balance sheet deficit liability
Management charge|**2024**
2023
**_£’000_**
_£’000_
**4,224**
5,014
**(614)**
(441)
**221**
(349)
**(2,366)**
-| |---|---| ||**1,465**
4,224| ||**221**
(349)
**32**
32| ||**253**
(317)| The £614,000 Paid in year, includes actual of £414,000 (2023 £441,000) together with a prepayment of £200,000 made in a prior year (2023 Nil). 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 5.15% (2023: 4.8%). Payments are being made monthly up to July 2028. The triennial valuation to the end of December 2022 was completed and the revaluation has been incorporated into this note. ## 13. Other Provisions Provisions **----- Start of picture text -----**
64 64 67 67
2024 Group 2024 Charity 2023 Group 2023 Charity
**----- End of picture text -----**
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 the Catholic Diocese of Arundel and Brighton. The % due to the Catholic Diocese of Arundel and Brighton currently decreases each year with a carrying balance of £31,000. 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 3 years with the previous owners of Lion Hudson. The current projection of profits due amount to £33,000. 43 ## 14.Other financial commitments and guarantees As at 30 April 2024, the outstanding commitments for non-cancellable operating leases fall due as follows: |Operating leases due
Within one year
2-5 years|**2024 Group**
2023 Group
**£’000**
£’000
**35**
34
**2**
3| |---|---| ||**37**
37| The lease payments recognised as an expense during the year were £52,000 (2023: £12,700). 44 ## 15.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. |Leech Capital Fund
Van Vryhouven Bequest
Other Trust Funds
Bray Endowed Capital
Bray Charity
D’Allone Charity
Leech Capital Fund
Van Vryhouven Bequest
Other Trust Funds
Bray Endowed Capital
Bray Charity
D’Allone Charity|Balance at
1 May 2023
Income
Gains/(Loss)
**Balance at**
**30 April**
**2024**
£’000
£’000
£’000
**£’000**
5,568
277
493
**6,338**
495
-
20
**515**
952
-
38
**990**
66
-
(1)
**65**
127
-
7
**134**| |---|---| ||1,145
- 44
**1,189**| ||| ||7,208 277 557
**8,042**| ||Balance at
1 May 2022
Income
Losses
**Balance at**
**30 April**
**2023**
£’000
£’000
£’000
**£’000**
6,404
257
(1,093)
**5,568**
517
-
(22)
**495**
993
-
(41)
**952**
64
-
2
**66**
132
-
(5)
**127**| ||1,189
- (44)
**1,145**| ||| ||8,110 257 (1,159)
**7,208**| 45 ## 16.Restricted Funds: Group and Charity |Other UK Projects
Other UK Projects|Balance at
1 May 2023
Income
Expenditure
Transfers
**Balance at**
**30 April**
**2024**
£’000
£’000
£’000
£’000
**£’000**
119 -(40) -
**79**| |---|---| ||119 - (40) -
**79**| ||Balance at
1 May 2022
Income
Expenditure
Transfers
**Balance at**
**30 April**
**2023**
£’000
£’000
£’000
£’000
**£’000**
76 75 (32) -
**119**| ||76 75 (32) -
**119**| Restricted funds represent amounts that were donated to support specific projects such as Theological Network Press, Assemblies, Bread of Life and Ordinands. 46 ## 17. Unrestricted Funds |Group
Leech Fund
Designated funds 1
Designated funds 2
Other charitable funds
Total
Charity
Leech fund
Designated funds 1
Designated funds 2
Other charitable funds
Total
Group
Leech Fund
Designated funds 1
Designated funds 2
Other charitable funds
Total
Charity
Leech Fund
Designated funds 1
Designated funds 2
Other charitable funds
Total|Balance at
1 May 2023
Income
Expenditure
Transfers
Gains
**Balance at**
**30 April 2024**
£’000
£’000
£’000
£’000
£’000
**£’000**
3,960
- - - 367
**4,327**
600
- - - -
**600**
29
- - - -
**29**
(1,992) 6,577 (4,409)
- 148
**324**| |---|---| ||2,597
6,577
(4,409)
-
515
**5,280**| ||0
2
0
1
**0**
Balance at
1 May 2023
Income
Expenditure
Transfers
Gains
**Balance at**
**30 April 2024**
£’000
£’000
£’000
£’000
£’000
**£’000**
3,960
- - - 367
**4,327**
600
- - - -
**600**
29
- - - -
**29**
(1,992) 5,405 (3,237)
- 148
**324**| ||2,597
5,405
(3,237)
-
515
**5,280**| ||Balance at
1 May 2022
Income
Expenditure
Transfers
Gains
**Balance at**
**30 April**
**2023**
£’000
£’000
£’000
£’000
£’000
**£’000**
4,387
- - - (427)
**3,960**
400
- - 200
-
**600**
22
- - 7
-
**29**
(1,637) 6,009 (5,862) (207) (295)
**(1,992)**| ||3,172
6,009
(5,862)
-
(722)
**2,597**| ||**3**
Balance at
1 May 2022
Income
Expenditure
Transfers
Gains
**Balance at**
**30 April**
**2023**
£’000
£’000
£’000
£’000
£’000
**£’000**
4,387
- - - (427)
**3,960**
400
- - 200
-
**600**
22
- - 7
-
**29**
(58) 4,907 (6,339) (207) (295)
**(1,992)**| ||4,751
4,907
(6,339)
-
(722)
**2,597**| 47 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. ## 18.Analysis of the Society’s net assets by Fund |Fund balances at 30 April 2024 are represented by:
Tangible fixed assets
Intangible fixed assets
Investments
Sarasin
Stock
Other current assets
Current liabilities
Long-term liabilities
Pension Provision
Total net assets|Unrestricted
Funds
Restricted
Funds
Endowment
Funds
**Total**
£’000
£’000
£’000
**£’000**
51
- -
**51**
(92)
- -
**(92)**
6,397
- 8,042
**14,439**
1,718
- -
**1,718**
1,146
- -
**1,146**
1,682 79
-
**1,761**
(4,091)
- -
**(4,091)**
(2.00)
- -**(2.00)**
(1,529)
- -
**(1,529)**| |---|---| ||**5,280**
**79**
**8,042**
**13,401**| 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 free reserves at the end of the current period of £1,683,000 _(2023:_ £2,226,000 _adjusted_ ). |Fund balances at 30 April 2023 are represented by:
Tangible fixed assets
Intangible fixed assets
Investments
Sarasin
Stock
Other current assets
Current liabilities
Long-term liabilities
Pension Provision
Total net assets|Unrestricted
Funds
Restricted
Funds
Endowment
Funds
**Total**
£’000
£’000
£’000
**£’000**
- - -
**-**
(138)
--
**(138)**
6,003
-7,208
**13,211**
1,650
--
**1,650**
1,228
--
**1,228**
1,698 119
-
**1,817**
(3,405)
- -
**(3,405)**
(148)
- -
**(148)**
(4,291)
- -
**(4,291)**
2,597
119
7,208
**9,924**| |---|---| 48 ## 19.Transactions with IVP During the year, the following transactions took place with IVP: ||**2024**|2023| |---|---|---| ||**£’000**|_£’000_| |Management charge paid by IVP|**562**|685| |At the year end the amount owed to SPCK was:|**2,235**|2,102| 49