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2021-12-31-accounts

Charity Registration No. 231748 Company Registration No. 347417

The Horse Trust

(A company limited by guarantee and not having share capital)

Group report and financial statements 31 December 2021

The Horse Trust

Legal and administrative information

Charity name The Horse Trust
Charity registration number 231748 Founded 1886, Incorporated 1938
Company registration number 347417
The Society is a member of the National Equine Welfare Council (NEWC)
Registered office and operational address The Horse Trust
Home of Rest for Horses
Speen
Princes Risborough
HP27 0PP
Patron Her Royal Highness The Princess Royal
President Baroness Mallalieu QC
Board of Trustees Mr D Cook – Chair (Appointed 22 September 2021)
Professor J D Slater- Chair (Resigned 22 September 2021)
Professor M Bowen (Resigned 23 June 2022)
Professor P Clegg
Mrs B Jones (Resigned 23 June 2022)
Mr C Marriott
Lord R De Mauley
Ms L Mcgillycuddy
Professor B McGorum
Mr R Neal
Ms C Roddis
Chief Executive and Secretary Miss J M Allen
Bankers Coutts and Co
St Martins Branch
440 The Strand
London
WC2R 0QS

The Horse Trust

Legal and administrative information (continued)

Auditors Saffery Champness LLP
St John’s Court
Easton Street
High Wycombe
Buckinghamshire
HP11 1JX
Solicitors Underwood & Co
40 Welbeck Street
London
W1M 8LN
Lupton Fawcett
Yorkshire House
East Parade
Leeds
West Yorkshire
LS1 5BD
Hatch Legal
12 Park House
11 Park Row
Leeds
LS1 5HB
Investment Managers Cazenove Capital Management Limited
12 Moorgate
London
EC2R 6DA
Sarasin & Partners LLP
Juxon House
100 St Paul’s Churchyard
London
EC4M 8BU

The Horse Trust

Contents

Page
Report of the board of trustees 1 - 7
Independent auditor’s report 8 - 11
Consolidated statement of financial activities 12
Consolidated balance sheet 13
Balance sheet 14
Consolidated statement of cashflows 15
Notes to the financial statements 16 - 42

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2021

The Board of Trustees has pleasure in presenting its report and the financial statements for the year ended 31 December 2021.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), which incorporates the report of the directors for the purposes of company law.

Structure, governance and management

Status and administration

The Trust was founded in 1886 and incorporated as a company limited by guarantee on 16 December 1938. It is registered as a charitable company and governed by its Memorandum and Articles of Association. A Board of Trustees, the members of which are set out on page 1 of this report, is responsible for the activities of the group.

For the purposes of the Companies Act 2006 members of the Board of Trustees are deemed to be directors and are appointed in accordance with the requirements of the Memorandum and Articles of Association.

Recruitment and induction of Trustees

Board members normally serve for a maximum of 6 years, 9 in some circumstances, and are selected to provide a broad spectrum of relevant expertise and experience.

Existing trustees and members are invited to submit names of potential trustees, who have to be registered members elected by The Board of Trustees. The Board will scrutinise these nominations with a view to ensuring that the duly elected Board contains the necessary skills mix. Trustee vacancies can be filled at any time through election by the Board, but such appointments must be confirmed through election by the members at the next AGM. Trustees serve for a nominal term of three years after which they can stand for election for a further three-year term, in some cases a third term of three years can also be served.

Induction training is provided for all new trustees. They visit the registered office so they can see how the group operates on a day-to-day basis. This also gives the new trustees an opportunity to meet the Chief Executive and other key personnel. The new trustees are given a briefing pack of important documentation.

Trustees are encouraged to attend appropriate external training events, seminars, workshops and be briefed on and discuss topical matters to assist them in the understanding and performance of their role. Articles, bulletins and notices relevant to their duties and responsibilities are circulated to trustees.

All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses are disclosed in note 29 to the accounts.

Key management personnel remuneration

The Trust is managed and operated by employed staff. The key management personnel are identified to be the Chief Executive, the Equine Care Director, the Veterinary Director and the Finance Director. The pay of the senior staff is reviewed annually by the Board and benchmarked appropriately.

Organisation

The Board of Trustees meet quarterly and are responsible for all strategic decisions and for setting policy. The Chief Executive is appointed to execute policy and to manage the administrative and day-to-day operations of The Trust.

Page 1

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2021 (continued)

The group has two wholly owned subsidiaries, The Horse Trust Trading Company Limited and British Animal Rescue and Trauma Association (BARTA).

BARTA undertakes the development and delivery of nationally recognised training courses in large animal rescue. It has worked in partnership with The Horse Trust for many years and has now been fully brought under The Horse Trust’s umbrella.

As the work of BARTA is so closely aligned with The Horse Trust it has been decided to consolidate the three organisations and show their financial statements in a group format.

Risk management

The Board of Trustees examines the major strategic business and operational risks which The Trust faces on an annual basis. They also ensure that there are the systems and procedures in place to mitigate these risks and to minimise any potential impact on the group.

The main areas of risk are considered to be fire or an incident at The Home of Rest for Horses. A full fire assessment has been carried out by an external specialist and no major issues were found and any minor recommendations have been implemented.

Objectives and activities

The objects of the group can be summarised in our mission statement:

The Horse Trust exists to enhance and improve the quality of life of equidae in the UK. This encompasses their physical and psychological needs. It will achieve this through the development, demonstration and dissemination of best practice in equine care.

In achieving these objectives, The Trust undertakes four main strategic aims:

1. Sanctuary – Demonstrate best practice

To provide lifelong sanctuary and respite care at the Home of Rest for Horses, for equines (1) who have served their country or community, (2) who come to us suffering, distressed and in need of special care or (3) for special cases as defined by the Trust.

2. Scientific Research – Develop Best Practice

To fund non-invasive research of the highest scientific standard that advances our knowledge of veterinary treatment, the optimal care of equines and the prevention of disease and suffering. The aim is to impact positively on the wider equine population.

3. Knowledge and Skills – Disseminate Best Practice

To devise and deliver a broad spectrum of training modules, courses and programmes for a variety of specified audiences and utilising a variety of media and techniques, that will impact most positively, the quality of life of the largest number of equines.

4. Policy - Direct Best Practice

To continue our policy work in a politically neutral way that does not compromise our scientific investment but that plays a key role in facilitating the development of national policy and best practice that improves equine welfare in the UK.

These objectives and the work done by the group to achieve them are reviewed regularly by the Board and a new strategic plan is devised approximately every five years.

Page 2

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2021 (continued)

Statement of public benefit

The Trustees in exercising their powers and duties have complied with their duty in Section 17 of the Charity Act 2011. The Board of Trustees has referred to the guidance contained in the Charity Commission’s general guidance on public benefit, including the guidance public benefit, running a charity (PB2), when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. Improving horse welfare is the primary aim and through the ongoing and planned activities described in this report, the charity fulfils its remit to public benefit through the advancement of education, the advancement of science, relief to animals in need and relief to needy owners and carers of animals through the provision of counselling and advice. The Horse Trust also benefits the taxpayer by providing training to police, fire and rescue and trading standard officers as well as providing respite care to working horses.

Achievements and performance

The Board would like to formally thank all the volunteers who assist the employees at events and with the running of both the office and the yard. The group would also like to thank their supporters for their ongoing financial support which allows us to continue our work and secure our long-term future.

Home of Rest for Horses

The Horse Trust is probably best known for its work providing retirement to working horses who have served their community or their country, such as horses from the Police, Army, Royal Mews and charities such as Riding for the Disabled Association and Horse Rangers. The Home of Rest for Horses will continue to provide lifelong retirement for these and for local equines found in urgent need of rescue.

A variety of professional equine focused organisations have been using our facilities and horses for their CPD training, including veterinary surgeons, equine behaviourists, farriers, and equine dental technicians. This is in addition to specialist training we provide ourselves. Our unique herd and range of teaching facilities allow professionals and statutory officers to further develop their skills and in turn means they are better equipped to help more people and horses. All these training courses, offered on our site by external providers or ourselves, add to the pool of better trained and qualified professionals that our own training programmes provide. Taken together they produce a significant benefit to horses, owners and to the public at large.

The rehabilitation work continues with the appropriate horses and a number have been successfully rehomed throughout the year which has freed up places here for horses that are on the waiting list.

During 2021 work was completed at our Langley Farm site to improve facilities for both the equines and the employees that care for them. There is a clinic that will allow our veterinary surgeon to treat horses on this site rather than being transferred back to Speen.

Research Grant Making Policy

The Horse Trust invites applications for both Research Grant Projects and PhDs. Once preliminary applications have been received, they are reviewed by the Science and Ethics Committee who then short list a selection that are invited to submit a full application. These full applications are then subject to a peer review and are ranked. The Board of Trustees of The Horse Trust will then make the final funding decisions from these rankings. These will be based in part on the impact assessment report of each short-listed application. The applicants will need to have clearly demonstrated the intended benefits to the UK equine population, how such benefits will be communicated to the horse owning and keeping public as well as veterinary and allied professionals and will be prompted to look at a variety of criteria when completing their reports. When the research grants are being discussed the meetings are chaired by the legally qualified trustee and all perceived, potential or actual conflicts of interest are scrupulously declared and recorded.

Page 3

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2021 (continued)

Research
Projects Supported
University of Liverpool
Animal Health Trust
University of Nottingham
University of Edinburgh
University of Bristol
Royal Veterinary College
Moredun Research
Roslin Institute
Other
Hartpury College		 No
8
1
2
1
2
1
1
1
1		 2021
£
No
248,001
8
47,454
2
34,441
1
28,032
3
22,745
2
14,000
1
13,458
1
6,595
1
3,502
2
1		 2020
£
129,420
27,010
56,018
64,621
39,209
4,000
13,474
20,112
11,666
3,170
18 418,228
22		 368,702

Current research projects are also being analysed to seek new best practice which can then be incorporated in our own yard routines as well as disseminated to appropriate audiences. Subjects being researched under Horse Trust funding include the causes of Atypical Myopathy, Wormer Resistance, the spread of exotic disease by mosquitos, Equine Dentistry, investigating the bacterium responsible for Strangles to aid the creation of an efficacious and affordable vaccine and the possible causes of Grass Sickness.

Following our second Scientific Symposium in 2019, The Horse Trust will continue in developing phases one and two of the HorseLife project including working with Equine Register on the IT structure needed for the study. HorseLife is the concept of following a large group of horses over a period of several years in a longitudinal cohort study of the type that has been successfully carried out in human medicine and in dogs.

Education in Equine Welfare

The Horse Trust has continued to train first responders from various Fire and Rescue Services and other public sector organisations in 2019 in conjunction with the British Animal Rescue and Trauma Association (BARTA). These courses help to safeguard fire fighters and the public when rescuing horses, by giving them a greater understanding of how horses behave when under stress, how they learn and how human actions can greatly affect the horse’s behaviour. This training also equips fire fighters and other first responders to better safeguard the public in a horse related incident. The courses have been a huge success with all fire fighters and first responders giving The Horse Trust excellent feedback, including sharing examples of when they have put the training to use within their daily work.

We also provide our own BEVA approved CPD courses for vets, vet nurses and vet students in ethical and safe horse handling and equine ethology. The Horse Trust also sponsored Student Equine Veterinary Association (SEVA) Congress. The event was a perfect opportunity for the Trust to unveil some of its exciting new online courses for veterinary surgeons and students.

The Horse Trust has also launched the TalkEquine webinar platform, to share the latest research and work from the equine science sector. It is a forum for discussion and communication, for open conversations into the latest developments in research, behavior, and practice. These webinars have also focused on supporting the recruitment and skills development of clinical animal behaviorists.

Page 4

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2021 (continued)

Policy

The Horse Trust has continued with its policy work in a politically neutral way, that does not compromise the scientific investment, but that plays a key role in facilitating the development of national policy and best practice that improves equine welfare in the UK. Our role of sector facilitator has become ever more utilised by government and the rest of the UK’s equine sector during 2020. The Horse Trust helps to facilitate the work of the British Horse Council, which brings together all aspects of equine interest in the UK including racing, breeding, elite sport, leisure riding, enforcement, veterinary and welfare agencies, providing a single unified voice to government on equine related matters where consensus exits.

Financial Review

Review of the year

2021 has been an unsettled year for the charity with the global pandemic affecting all areas of the charity’s work. The Home of Rest for Horses was able to reopen to the public in the summer however it was shut for half a year due which did mean that donations were lower than in normal years. It also meant The Horse Trust was unable to attend the normal external events which is a major way the charity recruits both supporters and donations. Office based employees continued to work at home for some of the year and were creative in finding other ways to generate income.

Other income streams such as legacies and investments were also significantly affected. There was a delay in receiving solicitor’s notifications, probate and selling houses which did slow up the legacy pipeline in year for both expected legacies and actual cash receipts. During 2021 The Horse Trust received legacies of £829,603 which was less than the previous year (2020 - £1,095,477).

The investment houses worked hard in an extremely difficult climate and whilst they performed well against benchmarks, the economic climate did mean that both portfolio values fell significantly, and income was also affected.

Regarding expenditure there some significant variations compared to budget as the 2021 budget was finalised when it appeared that the Covid restrictions were coming to an end prior to the emergence of new strains and further lockdowns. The Home of Rest continued to run as normal as the animals still need to be cared for and employees in this were considered essential workers who must come into work each day. Research payments were lower than expected as some universities did place a temporary hold on their projects. Knowledge and skills training did reduce as planned training courses did not run; some courses, however, were moved online. Policy work was able to continue although meetings become virtual rather than in person.

Investment policy

The Board of Trustees has the power to invest in such assets as it sees fit. Management of The Trust’s investment portfolio is split equally between two investment houses, Sarasin & Partners and Cazenove Capital Management who invest finances and advise the Investment Management Group, a sub-committee of the Board of Trustees which reviews investment performance and makes recommendations to trustees. Ultimately, changes in investment policy are the responsibility of the Board of Trustees. Currently the mandate for both houses is a long-term target of CPI +4%.

A significant proportion of investments are held in listed equity shares. The performance of the portfolio is generally in line with the overall UK stock market. At the year end the total amount held in investments was £15,316,091 (2020 - £17,330,603). It must be remembered that these values can only be taken as an indication of the value on this date.

Page 5

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2021 (continued)

Reserves

The Board of Trustees has developed over past years its policy with regard to the accumulated funds of the Trust. As explained in the notes to the accounts, designated funds are held to finance charitable fixed assets, future grant commitments and a capital fund.

The Horse Trust continues to accept research grant applications and so the Trust has transferred money to the designated Future Grants Fund as the nature of our funding is to generally commit to three-year long projects. This designated fund currently stands at £1,500,000 which will ensure that research grants can be awarded for the next three years (approximately £500,000 per year) Once projects have been awarded the required monies are transferred to the Future Awarded Grants Fund. This fund is then used to pay the agreed amounts to the grant recipients on a twice-yearly basis providing there is satisfactory progress.

The Capital Fund represents funds set aside to ensure a flow of income which is sufficient to support the future activities of the group including long term plans to issue significant grants for further scientific research. The General Fund is the operating reserves of the group and is set at approximately twelve months expenditure to ensure the flexibility to meet immediate plans. This fund currently stands at £3.5m.

Public relations and fundraising

During 2021 The Horse Trust continued with a proactive donor acquisition marketing strategy to recruit new supporters in ethical ways and to encourage donations through advertising, direct mail, public relations and other fundraising initiatives. The continuing objective is to acquire new donors, turn “one off” donors into regular givers and then to encourage committed donors to become legators. The Horse Sponsorship Scheme has proven highly successful; however, being shut to the public and not being able to attend external events has limited our donor recruitment. Costs have continued to be controlled throughout 2021 and new technologies and mechanisms introduced to further increase efficiency. The Board Members are satisfied that all Horse Trust fund raising activities are ethical and conducted within the law and best practice and have adopted a new formal Ethical Fundraising Policy to ensure our very high standards are maintained in this area.

Land and buildings

The value of freehold land and properties, included in the balance sheet at a book value of £8.6m, and is considered by the Board of Trustees to be in excess of that value if realised.

Future plans

The group plans to continue to enhance and improve the quality of life of horses in the UK with a greater emphasis on the requirement to cater for their psychological health as well as their physical health and to do more work on how best to influence owners to change some husbandry and training techniques.

During 2022, The Horse Trust will continue working on the Strategic Plan which was developed by the Chief Executive and the senior management team and agreed by the Board in March 2020.

The Horse Trust plans to further develop Talk Equine webinar platform as well as uploading all session into a bolt-on library function on the website. There are also further plans to increase the amount of science dissemination using new methods and targeting different audiences.

The Horse Trust will continue developing the HorseLife project including working to complete phases one and two and begin initial planning for phase three.

The Horse Trust will also continue its policy work and undertake to maintain its role as a trusted and politically neutral facilitator for the sector for the benefit of the UK’s equine population.

Page 6

The Horse Trust

Independent auditors’ report to the members of The Horse Trust

Opinion

We have audited the financial statements of The Horse Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise of the consolidated statement of financial activities, consolidated and company balance sheet, consolidated statement of cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company 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 or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 8

The Horse Trust

Independent auditors’ report to the members of The Horse Trust (continued)

Other information

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

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on 7, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Page 9

The Horse Trust

Independent auditors’ report to the members of The Horse Trust (continued)

In preparing the financial statements, the trustees are responsible for assessing the group and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company 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 auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

Page 10

The Horse Trust

Independent auditors’ report to the members of The Horse Trust (continued)

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Karen Bartlett (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

29 September 2022 .........................

Chartered Accountants

Statutory Auditors

St John's Court Easton Street High Wycombe HP11 1JX

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 11

The Horse Trust

Consolidated statement of financial activities (including income and expenditure account) For the year ended 31 December 2021

Unrestricted Restricted
Note
funds
funds
£
£
Income from
Donations and legacies
2
1,288,087
61,090
Charitable activities
3
49,912
-
Investment income
4
398,226
-
Rent receivable and
sundry income
5
102,957
-
Total
1,839,182
61,090
Expenditure on:

Raising funds
6
300,663
-
Charitable activities
7
3,711,002
23,912
Investment management
-
Costs
82,666
-
Total
4,094,331
23,912
Net gains/(losses) on
investments
Gains/(losses) on
Investment assets
17
1,170,466
-
Net Income/
(expenditure)
(1,084,684)
37,178
Transfer between funds
21
-
-
Total fund movement
(1,084,684)
37,178
Reconciliation of funds:
21
Total funds brought forward
26,326,443
80,804
Total funds carried forward 21
25,241,759
117,982		 Total
funds
Unrestricted Restricted
2021
funds
funds
£
£
£
1,349,177
1,518,960
44,792
49,912
26,020
-
398,226
474,633
-
102,957
49,111
-
1,900,272
2,068,724
44,792
300,663
153,869
-
3,734,914
3,051,704
41,522
82,666
85,431
-
4,118,243
3,291,004
41,522
1,170,466
980,726
-
(1,047,506)
(241,556)
3,270
-
-
-
(1,047,506)
(241,556)
3,270
26,407,247
26,567,999
77,534
25,359,741
26,326,443
80,804		 Total
funds
2020
£
1,563,752
26,020
474,633
49,111
2,113,516
153,869
3,093,226
85,431
3,332,526
980,726
(238,286)
-
(238,286)
26,645,533
26,407,247

All recognised gains and losses are included within the above statement. All amounts relate to continuing activities. The notes on pages 16 to 42 form part of these financial statements.

The trustees have prepared group accounts in accordance with Section 398 of the Companies Act 2006 and Section 138 of the Charities Act 2011. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. As permitted by s408 Companies Act 2006, the company has not presented its own Statement of Financial Activity and related notes. The Charity's loss for the year was £1,018,580 (2020 – loss of £118,444).

Page 12

Note
Note		 Note
Note		 2021
2021		 2020
2020
£
£		 £
£		 £
£
£ £
Fixedassets
Fixed assets
Tangibleassets
Tangible assets		 16
16		 8,634,610
8,634,610		 7,789,086
7,789,086
Investments
Investments		 17
17		 15,316,091
15,316,091		 17,330,603
17,330,603
23,950,701
23,950,701		 25,119,689
25,119,689
Currentassets
Current assets
Stocks
Stocks		 18
18		 41,405
41,405		 39,634
39,634
Debtors
Debtors		 19
19		 1,160,509
1,160,509		 1,283,775
1,283,775
Cashatbankandinhand
Cash at bank and in hand		 359,432
359,432		 192,969
192,969
1,561,346
1,561,346		 1,516,378
1,516,378
Creditors:amountsfalling
duewithinoneyear
Creditors: amounts falling
duewithin one year		 20
20		 (152,304)
(152,304)		 (228,818)
(228,818)
Netcurrentassets
Net current assets		 1,409,042
1,409,042
1,287,560

1,287,560
Netassets
Netassets		 25,359,743
25,359,743		 26,407,249
26,407,249
Representedby
Represented by
Funds
Funds
Unrestrictedfunds
Unrestricted funds		 21
21
Generalfund
General fund		 3,480,426
3,480,426		 3,000,000
3,000,000
Designatedfunds
Designated funds
Charitablefixedassets
Charitable fixed assets		 8,553,345
8,553,345		 7,711,749
7,711,749
Futuregrants
Future grants		 1,500,000
1,500,000		 1,500,000
1,500,000
Awardedfuturegrants
Awarded future grants		 1,151,985
1,151,985		 1,157,142
1,157,142
Capitalfund
Capital fund		 10,822,531
10,822,531		 13,157,976
13,157,976
BARTA
BARTA		 (253,230)
(253,230)		 (178,851)
(178,851)
HorseTrustTradingCompany
Horse Trust Trading Company		 (13,296)
(13,296)		 (21,571)
(21,571)
25,241,761
25,241,761		 26,326,445
26,326,445
Restrictedfunds
Restricted funds		 22
22		 117,982
117,982		 80,804
80,804
Totalaccumulatedfunds
Total accumulated funds		 23
23		 25,359,743
25,359,743		 26,407,249
26,407,249
Note
Note		 2021
2021		 2020
2020
£
£		 £
£		 £
£		 £
£
Fixedassets
Fixed assets
Tangibleassets
Tangible assets		 16
16		 8,615,532
8,615,532		 7,775,749
7,775,749
Investments
Investments		 17
17		 15,335,665
15,335,665		 17,350,176
17,350,176
23,951,197
23,951,197		 25,125,925
25,125,925
Currentassets
Currentassets
Stocks
Stocks		 18
18		 38,405
38,405		 36,634
36,634
Debtors
Debtors		 19
19		 1,505,355
1,505,355		 1,544,907
1,544,907
Cashatbankandinhand
Cash at bank and in hand		 295,645
295,645		 146,689
146,689
1,839,405
1,839,405		 1,728,230
1,728,230
Creditors:amountsfallingdue
withinoneyear
Creditors: amounts falling due
within one year		 20
20		 (144,759)
(144,759)		 (226,912)
(226,912)
Netcurrentassets
Net current assets		 1,694,646
1,694,646		 1,501,318
1,501,318
Netassets
Net assets		 25,645,843
25,645,843		 26,627,243
26,627,243
Representedby
Represented by
Funds
Funds
Unrestrictedfunds
Unrestricted funds		 21
21
Generalfund
General fund		 3,500,000
3,500,000		 3,019,573
3,019,573
Designatedfunds
Designated funds
Charitablefixedassets
Charitable fixed assets		 8,553,345
8,553,345		 7,711,749
7,711,749
Futuregrants
Future grants		 1,500,000
1,500,000		 1,500,000
1,500,000
Awardedfuturegrants
Awarded future grants		 1,151,985
1,151,985		 1,157,142
1,157,142
Capitalfund
Capital fund		 10,822,531
10,822,531		 13,157,976
13,157,976
25,527,861
25,527,861		 26,546,439
26,546,439
Restrictedfunds
Restricted funds		 22
22		 117,982
117,982		 80,804
80,804
Totalaccumulatedfunds
Total accumulatedfunds		 23
23		 25,645,843
25,645,843		 26,627,243
26,627,243

The Horse Trust

Consolidated statement of cashflows As at 31 December 2021

Note
Cash used in operating activities
26
Cashflow from investing activities
Dividends, interest and rents from investments
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash (used in)/provided by investing activities
Cashflow from financing activities
Repayment of borrowings
Cash inflows from Charity Combination
Receipt of endowment
Net cash provided by/(used in) financing
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
27		 2021
£
(2,217,078)
398,226
49,600
(1,099,797)
5,752,856
(2,865,398)
2,235,487
-
-
-
-
18,409
999,481
1,017,890		 2020
£
(1,760,716)
474,633
(12,330)
(394,385)
5,005,606
(3,350,798)
1,722,726
-
-
-
-
(37,990)
1,037,469
999,481

The notes on pages 16 to 42 form part of these financial statements.

Page 15

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021

1 Accounting policies

The Horse Trust is a company limited by guarantee and has no share capital. In the event of the group being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The group is registered in England and Wales. The registered office is The Horse Trust, Home of Rest for Horses, Speen, Princes Risborough, HP27 0PP.

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

1.1 Basis of accounting

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK (FRS102) – Charities SORP 2015 and the Companies Act 2006.

The Horse Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

There are no material uncertainties about the group’s ability to continue as a going concern.

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

1.2 Consolidation

The financial statements consolidate the results of the Charity and its wholly owned subsidiary The Horse Trust Trading Company Limited as well as British Animal Rescue and Trauma Care Association CIC, which is deemed to be a included in the consolidation of the Trust due to the deemed control rather than share ownership due to the organisational status as a CIC. The consolidation has been completed on a on a line by line basis. Details of the undertakings together with a summary of their income and expenditure for the year and net assets are shown in notes 17 and 31.

1.3 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:-

Freehold land - Nil
Freehold property - over 50 years by equal instalments
Property improvements - over 10 to 30 years by equal instalments
Loose boxes - over 30 years by equal instalments
Plant and equipment - at 10% of the reducing balance
Furniture, fixtures and fittings - at 10% of the reducing balance, or over 3 years by
equal instalments
Motor vehicles - over 5 years by equal instalments
Horse ambulance - at 25% of the reducing balance

Individual fixed assets costing more than £500 are capitalised at cost.

Page 16

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

1. Accounting policies

(continued)

1.4 Investments

Investments are stated at market value at the balance sheet date. The SOFA includes gains and losses arising on revaluations and disposals throughout the year.

Realised gains and losses represent the difference between the market value at the previous balance sheet date and the eventual sale proceeds. Unrealised gains and losses represent the difference between market value at the previous balance sheet date, or cost of any purchases during the year, and the market value at the balance sheet date.

1.5 Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

1.6 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.7 Cash at bank and in hand

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

1.8 Creditors and provisions

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

1.9 Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.10 Pension costs

The company contributes to a defined contribution pension scheme and a group personal pension plan. Contributions to the pension scheme are charged to the income and expenditure account as they fall due.

Page 17

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

1. Accounting policies

(continued)

1.11 Incoming resources

All incoming resources are included in the statement of financial activities when the group is entitled to the income and the amount can be measured with reliably.

Voluntary income is received by way of legacies and donations. Donations are included in full in the statement of financial activities when received.

For legacies, entitlement is taken as the earlier of the date on which either: the group is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the group has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the group, or the group is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material (see note 25).

1.12

Donated goods

The Trust receives assistance in the form of donated goods. This income is recognised in the statement of the financial activities at market value or managements estimate as the Trust would otherwise have to purchase these goods.

1.13

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly.

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases when the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the group and include the audit fees and costs linked to the strategic management of the group.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Page 18

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

1. Accounting policies

(continued)

1.14 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the group; this is normally upon notification of the interest paid or payable by the Bank.

1.15 Allocation of support costs

Support costs are those functions that assist the work of the group but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trusts artistic programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been apportioned on an appropriate basis as set out in Note 12.

1.16 Taxation

The Trust as a charity is not liable for assessment to tax on its income and gains to the extent that they are applied to its charitable objectives.

1.17

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on the general fund and designated funds. They are available for use at the discretion of the Committee of Management in furtherance of the Trust’s general charitable objectives.

Designated funds are those funds designated for particular purposes or projects at the discretion of the Committee of Management. These are explained in more detail in Note 21.

Restricted funds are created when income is received which has a restriction placed upon its use by the donor.

1.18 Going Concern

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

Page 19

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

2. Donations and legacies

Unrestricted
Restricted
2021
2021
£
£
Donations income
395,306
61,090
BARTA income
63,178
Legacies
829,603
1,288,087
61,090
3.
Income from charitable activities
Unrestricted
Restricted
2021
2021
£
£
Fundraising
25,667

Training income
24,245

49,912

4.
Investment income
Unrestricted
Restricted
2021
2021
£
£
Income from investments
397,531

Bank interest
695

398,226

5.
Rent receivable and sundry income
Unrestricted
Restricted
2021
2021
£
£
Rent
6,257

Trading subsidiary income
53,020

Other
43,680

102,957
 Unrestricted
Restricted
2021
2021
£
£
Donations income
395,306
61,090
BARTA income
63,178
Legacies
829,603
1,288,087
61,090
3.
Income from charitable activities
Unrestricted
Restricted
2021
2021
£
£
Fundraising
25,667

Training income
24,245

49,912

4.
Investment income
Unrestricted
Restricted
2021
2021
£
£
Income from investments
397,531

Bank interest
695

398,226

5.
Rent receivable and sundry income
Unrestricted
Restricted
2021
2021
£
£
Rent
6,257

Trading subsidiary income
53,020

Other
43,680

102,957
 Total
2021
£
456,396
63,178
829,603
1,349,177

Total

2021

£
-
25,667
-
24,245
-
49,912

Total

2021

£
-
397,531
-
695
-
398,226

Total

2021

£
-
6,257
-
53,020
-
43,680
-
102,957		 Total
2020
£
436,605
31,670
1,095,477
1,563,752



-
-
-



-
-
-



-
-
-
-		 Total
2020
£
23,103
2,917
26,020
Total
2020
£
472,520
2,113
474,633
Total
2020
£
7,292
9,469
32,350
49,111

Page 20

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

6. Cost of raising funds
Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
Cost of generating voluntary income 62,428 - 62,428 12,309
Public relations 12,699 - 12,699 811
Promotional material 6,670 - 6,670 4,734
Trading subsidiary costs 44,745 - 44,745 15,079
Support costs (see Note 12) 174,121 - 174,121 120,936
300,663 - 300,663 153,869
Basis of allocation for support costs is direct.
7. Charitable activities expenditure
Unrestricted
Restricted		 Total Total
2021 2021 2021 2020
£ £ £ £
Home of Rest for Horses 1,904,918 4,878 1,909,796 1,744,136
Research costs 1,291,680 19,034 1,310,714 807,571
Education in Equine Welfare 257,955 - 257,955 351,953
BARTA costs 137,557 - 137,557 145,902
Governance 118,892 - 118,892 43,664
Total 3,711,001 23,912 3,734,914 3,093,224
Activities
undertaken Support Total
funds costs 2021
£ £ £
Home of Rest for Horses 782,280 1,122,638 1,904,918
Research costs 1,041,987 249,703 1,291,690
Education in Equine Welfare 35,578 222,377 257,955
Governance - 118,892 118,892
Total 1,859,845 1,713,610 3,573,455

Page 21

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

8.
Analysis of expenditure
Forage and rent
Fertiliser and muck disposal
Repairs and maintenance
Fencing
Heat and light
Insurances
Council tax and water
Veterinary, farrier and other
Costs
Welfare rescue
Yard equipment and uniform
Vehicle expenses
Depreciation
Scientific research
Clinical scholarship
Other Grants
Science Diss
HorseLife
Education sponsorship
Best Practice
Providing professional
Training
Welfare clinic costs
Equine Policy
Cost of generating voluntary
income
Public relations
Promotional material
BARTA costs
Trading subsidiary costs
Support costs (see Note 12)		 Charitable
Cost of raising
Activities Governance
raising funds
£
£
£
79,784
12,868
113,083
19,886
54,654
52,669
22,781
191,528
21,579
28,752
184,699
145,421
269,304
3,502
15,304
608,445
11,132
6,817
14,824
2,805
62,428
12,699
4,597
137,557
44,745
1,594,718
118,892
174,121
3,671,835
118,892
218,867		 Total
2021
£
79,784
12,868
113,083
19,886
54,654
52,669
22,781
191,528
21,579
28,752
184,699
145,421
269,304
3,502
15,304
608,445
11,132
6,817
14,824
2,805
62,428
12,699
4,597
137,557
44,745
1,887,731
4,009,593		 Total
Basis of
2020 allocation
£
75,243 Direct
9,540 Direct
60,723 Direct
19,083 Direct
35,033 Direct
44,608 Direct
9,189 Direct
178,733 Direct
1,264 Direct
19,745 Direct
20,014 Direct
187,967 Direct
189,741 Direct
169,961 Direct
9,000 Direct
3,389 Direct
219,632 Direct
19,396 Direct
4,742 Direct
9,183 Direct
15,777 Direct
4,209 Direct
12,309 Direct
811 Direct
4,734 Direct
142,309 Direct
15,079 Direct
1,724,159 Direct
3,205,573

Page 22

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

9.
Research costs
Scientific research
Clinical scholarship
Other grants
Science Diss
HorseLife
Support costs (see Note 12)
10.
Education in Equine Welfare
Education sponsorship
Best Practice
Providing professional training
Welfare clinic costs
Equine Policy
Support costs (see Note 12)
11.
Analysis of grants
Analysis
Veterinary Research
Grants to institutions
University of Liverpool
University of Edinburgh
University of Nottingham
University of Bristol
The Animal Health Trust
Roslin Institute
Moredun Research
RVC
Other		 2021
£
145,421
269,304
3,502
15,304
608,445
249,703
1,291,680
2021
£
11,132
6,817
14,824
-
2,805
222,377
257,955
Grants to
Support costs
institutions
(see Note 12)
£
£
418,227
249,703
248,001
28,032
34,441
22,745
47,454
6,595
13,458
14,000
3,501
418,227		 2020
£
189,741
169,961
9,000
3,389
219,632
215,848
807,571
2020
£
19,396
4,742
5,589
15,777
4,209
280,614
330,327
Total
£
667,930

Page 23

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

12. Support costs

Salaries
Salary on costs
Recruitment
Pension
Cleaning
Telephone and
Internet
Website
Design
Sundries
Purchases
Depreciation
of office
equipment
Audit and
Accountancy
IT Support
Legal and
Professional
fees
Health and
Safety
Site security
Travel
Expenses
Committee
Expenses
Postage,
Printing and
Stationery
HR
Development
Bank Charges
and Interest		 Cost of
Education
Raising
The
Research
in equine
Governance
Total
Basis of
Funds
Home
costs
welfare
costs
2021 apportionment
£
£
£
£
£
£
117,253
846,305
159,997
116,217
90,553
1,330,326
Staff time
844
8,280
836
1,351
328
11,639
Staff
4,693
1,383
276
276
6,628
Direct costs
9,838
59,389
17,540
23,812
8,749
119,328
Staff time
4,240
41,610
4,200
6,791
1,649
58,490
Staff
2,758
27,067
2,732
4,418
1,072
38,047
Staff
2,628
2,628
2,628
2,628
10,512
Equal split
1,348
1,348
1,348
4,044
Equal split
8,277
8,277
Direct costs
7,059
7,059
7,059
7,059
28,236
Equal split
1,000
1,000
1,000
9,000
12,000

12,598
12,598
12,598
37,794
Equal split
20,665
20,665
20,665
61,994
Equal split
1,861
18,262
1,843
2,980
724
25,670
Staff
3,875
38,032
3,839
6,207
1,507
53,460
Staff
23
3,347
2,393
2,690
15
8,469
Direct costs
1,460
1,460
Direct costs
5,352
5,352
5,352
5,352
21,407
Equal split
2,597
25,488
2,573
4,160
1,010
35,828
Staff
2,825
2,825
2,825
2,825
2,825
14,123
Equal split
174,121
1,122,638
249,703
222,377
118,892
1,887,731*

Page 24

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

pport costs -
Salaries
Salary on costs
Recruitment
Consultancy
Pension
Heat and Light
Cleaning
Telephone and
Internet
Website
Design
Sundries
Purchases
Depreciation
of office
equipment
Audit and
Accountancy
IT Support
Legal and
Professional
fees
Health and
Safety
Site security
Travel
Expenses
Committee
Expenses
Postage,
Printing and
Stationery
HR
Development
Bank Charges
and Interest		 2020
Cost of
Raising
Funds
£
72,184
509
1,269
-
8,050
-
3,041
1,618
4,092
-
11,664
5,989
981
-
-
8
2,639
140
-
4,918
1,701
2,133
120,936		 The
Home
£
811,872
7,806
1,251
-
55,120
-
46,661
24,825
4,092
1,288
-
5,989
981
9,105
18,378
128
40,487
1,963
-
4,918
26,101
2,133
1,063,098		 Research
costs
£
140,930
499
-
-
16,850
-
2,985
1,588
4,092
1,288
-
5,989
981
9,105
18,378
8
2,590
1,843
-
4,918
1,670
2,133
215,848		 Education
in equine
Governance
welfare
costs
£
£
175,591
28,304
1,396
68
-
-
-
-
29,644
2,840
-
-
8,344
404
4,439
215
4,092
-
1,288
-
-
-
5,989
-
981
9,000
9,105
-
18,378
-
23
1
7,240
351
2,384
82
-
40
4,918
-
4,667
226
2,133
2,133
280,614
43,664		 (continued)
Total
Basis of
2020 apportionment
£
1,228,881
Staff time
10,278
Staff
2,520
Direct costs
-
Equal split
112,505
Staff time
-
Staff
61,435
Staff
32,685
Staff
16,367
Equal split
3,865
Equal split
11,664
Direct costs
23,957
Equal split
12,924
*
27,316
Equal split
55,134
Equal split
169
Staff
53,307
Staff
6,412
Direct costs
40
Direct costs
19,670
Equal split
34,365
Direct costs
10,666
Equal split
1,724,160

12. Support costs - 2020

The group adopts a policy of allocating costs to the respective cost heading through the year. This allocation includes support costs where they are directly attributable. Where such costs are not directly attributable they are allocated on either staff time or number. Where this is not considered appropriate support costs are allocated evenly.

*Audit - governance/Accountancy – equal split

Page 25

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

13. Net incoming resources for the year

2021 2020
£ £
This is arrived at after charging or (crediting):
Rent receivable under operating leases
Land and buildings (6,257) (7,292)
Depreciation – owned fixed assets 212,935 218,117
Loss on capital – owned fixed assets - 3,938
Auditors’ remuneration
Audit services 9,000 9,000
Non audit services 1,000 1,000

14. Employees

a. Number of employees

During the year the average monthly number of full time equivalent staff employed by the Trust was as follows:-

Farm and stables
Home support staff
The Horse Trust Trading Co
BARTA
b.
Employment costs
Wages and salaries
Social security costs
Pension costs		 Group
2021
£
29
19
2
2
52
Group
2021
£
1,346,518
120,636
119,328
1,586,482		 Group
2021
£
29
19
2
2		 Group
2020
£
27
17
2
1
47
Group
2020
£
1,238,775
111,493
112,505
1,462,773		 Charity
2021
£
29
19
-
-
48
Charity
2021
£
1,211,735
118,591
119,328
1,449,654		 Charity
2020
£
27
17
-
-
44
Charity
2020
£
1,120,318
108,563
112,505
52
1,341,386

All staff are employed by the group.

Page 26

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

14. Employees

(continued)

In both 2021 and 2020 there was one employee who earned between £100,000 – £110,000.

The key management personnel for the group comprise of three individuals considered to make decisions on behalf of the Trustees. Total employee benefits of the key management personnel of the group was £316,490 (2020: £249,785).

No Trustees received remuneration during the year (2020: £nil).

15. Taxation

The company is a registered charity and is not considered liable to taxation on its charitable activities. Income tax deducted at source from income is recoverable, where possible, from HM Revenue & Customs.

16. Tangible fixed assets

Loose boxes
Motor
Freehold land,
and other
Furniture
vehicles
property and
plant and
fixtures
and horse
improvements
equipment
and fittings
ambulance
£
£
£
£
Cost
1 January 2021
8,001,972
565,436
398,254
124,174
Additions
921,237
147,749
35,911
-
Disposals
-
(58,596)
-
(25,000)
31 December 2021
8,923,209
654,589
434,165
99,174
Depreciation
1 January 2021
755,136
226,911
226,033
92,670
Charge for the year
132,074
48,843
28,463
11,341
Disposal
-
(22,759)
-
(22,187)
31 December 2021
887,210
252,995
254,496
81,824
Net book values
31 December 2021
8,036,000
401,594
179,669
17,350
31 December 2020
7,246,836
338,525
172,221
31,504		 Total
£
9,089,836
1,104,897
(83,596)
10,111,137
1,300,750
220,721
(44,946)
1,476,525
8,634,613
7,789,086

Page 27

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

16. Tangible fixed assets

(continued)

Summary - Charity

Loose boxes
Motor
Freehold land,
and other
Furniture
vehicles
property and
plant and
fixtures
and horse
improvements
equipment
and fittings
ambulance
£
£
£
£
Cost
1 January 2021
8,001,972
535,597
398,254
124,174
Additions
921,237
138,999
35,911
-
Disposals
-
(58,596)
-
(25,000)
31 December 2021
8,923,209
616,000
434,165
99,174
Depreciation
1 January 2021
755,136
210,409
226,033
92,670
Charge for the year
132,074
45,834
28,463
11,341
Disposal
-
(22,759)
-
(22,187)
31 December 2021
887,210
233,484
254,496
81,824
Net book values
31 December 2021
8,035,999
382,516
179,669
17,350
31 December 2020
7,246,836
325,188
172,221
31,504		 Total
£
9,059,997
1,096,147
(83,596)
10,072,548
1,284,248
217,712
(44,946)
1,457,014
8,615,534
7,775,749

Included within freehold property and improvements is land of £2,364,936 (2020: £1,963,610) which is not depreciated. Freehold property comprises property at Speen Farm, Langley Farm and Little Moseley Farm, Buckinghamshire.

c. All of the fixed assets are used for charitable purposes other than an immaterial element of furniture, fixtures and fittings which is used for administration purposes.

Page 28

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

17. Investments

a.
Investment in subsidiary undertaking
Cost
1 January 2021
31 December 2021
Impairment
1 January 2021 and 31 December 2021
Movement in year
31 December 2021
Net book values
Brought Forward
Carried Forward
Group
2021
£		 Group
2020
£
-
-
-
-
-
-
-		 Charity
2021
£
19,574
19,574
-
-
-
19,574
19,574		 Charity
2020
£
19,574
19,574
-
-
-
19,574
19,574

The Charity has 100% ownership of The Horse Trust Trading Company Limited and has 100% control of British Animal Rescue and Trauma Care Association CIC during 2020. The acquisition shown above represents the investment treated as a “gift” at the date of the charitable combination.

Page 29

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

17.
Investments
b.
Investment portfolio
Group
2021
£
Cost
1 January 2021
12,526,914
Additions at cost
2,865,398
Disposals
(4,903,459)
31 December 2021
10,488,853
Unrealised gain
1 January 2021
3,997,177
Movement in year
171,605
31 December 2021
4,168,782
Market value of quoted investments
31 December 2021
14,657,635
Other investment monies
Stockbroker open accounts
Capital account
266,701
Income account
391,756
31 December 2021
658,457
Total investments
15,316,092		 Group
2020
£
13,374,044
3,350,798
(4,197,928)
12,526,914
3,893,119
104,058
3,997,177
16,524,091
52,370
754,142
806,512
17,330,603		 (continued)
Charity
Charity
2021
2020
£
£
12,526,914
13,374,044
2,865,398
3,350,798
(4,903,459)
(4,197,928)
10,488,853
12,526,914
3,997,177
3,893,119
171,605
104,058
4,168,782
3,997,177
14,657,635
16,524,091
266,701
52,370
391,756
754,142
658,457
806,512
15,316,092
17,330,603		 (continued)
Charity
Charity
2021
2020
£
£
12,526,914
13,374,044
2,865,398
3,350,798
(4,903,459)
(4,197,928)
10,488,853
12,526,914
3,997,177
3,893,119
171,605
104,058
4,168,782
3,997,177
14,657,635
16,524,091
266,701
52,370
391,756
754,142
658,457
806,512
15,316,092
17,330,603
12,526,914
3,893,119
104,058
3,997,177
16,524,091
52,370
754,142
806,512
17,330,603

Since the balance sheet date global markets have been affected as tighter monetary policies Worldwide have dampened surging inflation. Beyond policy changes the war in Ukraine has fuelled further economic uncertainty. As a result, as at 7 September 2022, the investment portfolio presented above has fallen in value to £12,518,971 (a loss of £2,797,121 since the year end).

c. Analysis of realised and unrealised gain

Realised gain/(loss)
Unrealised gain/(loss)
Total net gains/(losses)		 Group
2021
£
998,861
171,605
1,170,466		 Group
2020
£
876,666
104,058
980,724		 Charity
2021
£
998,861
171,605
1,170,466		 Charity
2020
£
876,666
104,058
980,724

Page 30

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

17. Investments

(continued)

d. Analysis of investments

Quoted investments at market value are comprised of:

UK equities
Non UK equities
UK fixed interest securities
UK bonds
Other UK investments held
Other non UK investments held		 Group
2021
£
2,383,950
8,253,000
342,164
1,324,779
441,348
1,912,393
14,657,634		 Group
2020
£
2,457,924
8,968,561
226,716
1,867,838
1,152,149
1,850,903
16,524,091		 Charity
2021
£
2,383,950
8,253,000
342,164
1,324,779
441,348
1,912,393
14,657,634		 Charity
2020
£
2,457,924
8,968,561
226,716
1,867,838
1,152,149
1,850,903
16,524,091

e. Subsidiaries

Name

Business activity

Wholly owned Subsidiaries of the charity:

The Horse Trust Trading Company Limited

British Animal Rescue and Trauma Care Association CIC

18. Stocks

Forage
Veterinary Drugs
Merchandise
Other		 Group
2021
£
8,065
20,740
9,600
3,000
41,405		 Group
2020
£
13,065
17,332
6,237
3,000
39,634		 Charity
2021
£
8,065
20,740
9,600
-
38,405		 Charity
2020
£
13,065
17,332
6,237
-
36,634

Page 31

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

19.
Debtors
Group
Group
Charity
2021
2020
2021
£
£
£
Income tax recoverable
77,899
59,532
77,899
Other debtors and prepayments
1,082,609
1,224,243
1,067,886
Amounts due from subsidiary
undertakings
-
-
359,570
1,160,509
1,283,775
1,505,355
All amounts shown under debtors fall due for payment within one year.
20.
Creditors: amounts falling due within one year
Group
Group
Charity
2021
2020
2021
£
£
£
Trade creditors
65,015
92,188
63,610
Other taxes and social security
costs
31,776
31,016
31,776
Other creditors
-
-
-
Accruals
55,513
105,613
49,373
152,304
228,818
144,759		 Charity
2020
£
59,532
1,221,076
264,299
1,544,907
Charity
2020
£
92,188
31,016
1
103,707
226,912

Page 32

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

21. Funds movement summary Group

Unrestricted funds
General funds
Designated funds
Charitable fixed assets
BARTA
Horse Trust Trading
Future grants
Awarded future grants
Capital fund
Restricted fund (note 22)
Total accumulated funds		 Balance at
1 Jan 2021
£
3,000,000
7,711,749
(178,851)
(21,571)
1,500,000
1,157,142
13,157,976
26,326,445
80,804
26,407,249		 Incoming
resources
£
1,722,984
-
63,178
53,020
-
-
-
1,839,181
61,090
1,900,272		 Resources
expended
£
(3,285,179)
(208,624)
(137,557)
(44,745)
-
(418,227)
-
(4,094,332)
(23,912)
(4,118,244)		 Investment
gains
Transfers in
Transfers out
£
£
£
2,042,622
-
1,050,219
-
-
-
-
-
-
-
413,070
-
1,170,466
-
(3,505,911)
1,170,466
3,505,911
(3,505,911)
-
-
-
1,170,466
3,505,911
(3,505,911)		 Balance at
31 Dec 2021
£
3,480,427
8,553,345
(253,230)
(13,296)
1,500,000
1,151,985
10,822,531
25,241,761
117,982
25,359,743

Page 33

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

21. Funds movement summary Charity

Unrestricted funds
General funds
Designated funds
Charitable fixed assets
Future grants
Awarded future grants
Capital fund
Restricted fund (note 22)
Total accumulated funds		 Balance at
1 Jan 2021
£
3,019,573
7,711,749
1,500,000
1,157,142
13,157,976
26,546,440
80,804
26,627,244		 Incoming
resources
£
1,722,984
-
-
-
-
1,722,984
61,090
1,784,074		 Resources
expended
£
(3,285,179)
(208,624)
-
(418,227)
-
(3,912,030)
(23,912)
(3,935,942)		 Investment
gains
Transfers in
Transfers out
£
£
£
-
2,042,622
-
-
1,050,219
-
-
-
-
-
413,070
-
1,170,466
-
(3,505,911)
1,170,466
3,505,911
(3,505,911)
-
-
-
1,170,466
3,505,911
(3,505,911)		 Balance at
31 Dec 2021
£
3,500,000
8,553,345
1,500,000
1,151,985
10,822,531
25,527,860
117,982
25,645,843

The general fund represents the operating reserves of the group and is approximately twelve months operating expenditure.

The designated funds are those funds designated at the discretion of the committee for particular purposes as detailed in the Trustee’s Report.

The charitable fixed assets fund represents fixed assets held for the Home’s use.

The future grants fund is for the purpose of making grants to equine/scientific projects in the future, the group awards approximately £500,000 per year in new research grants.

The awarded future grants fund represents the equine / scientific projects that have been awarded and will be paid out over the next three years.

Page 34

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

21. Funds movement summary

(continued)

The capital fund represents funds set aside to ensure a flow of income which is sufficient to support the future activities of the group including long term plans to issue grants for further scientific research. The fund was established during the year ended 31 December 1998 by a transfer from the general fund of £12,750,000.

The Restricted fund represents the balance of donations due to be applied for specific purposes determined by the donors, see Note 22.

Page 35

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

22. Restricted funds

CIC Formation
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward
Scholarship funding
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward
Healthy Horses Partnership
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward
Indoor arena fund
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward
Alborada Fund
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward
ECT
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward
Horse Walker
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward		 300
-
-
300
10,411
25,992
(19,134)
17,269
1,965
-
-
1,965
24,000
-
(600)
23,400
40,000
-
(1,213)
38,787
4,128
18,000
(914)
21,214
-
10,000
(1,824)
8,176

Page 36

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2021 (continued)

Veterinary Equipment
Balance brought forward
2021 donations
2021 expenditure
Balance carried forward
Restricted fund total		 -
7,099
(228)
6,871
117,982

Page 37

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

23. Analysis of net assets between funds

Group

Unrestricted funds
General fund
Designated funds:
Charitable fixed assets
BARTA
Trading Company
Future grants
Future awarded grants
Capital fund
Fund transfers
Restricted funds
Total funds
Charity
Unrestricted funds
General fund
Designated funds:
Charitable fixed assets
BARTA
Trading Company
Future grants
Future awarded grants
Capital fund
Fund transfers
Restricted funds
Total funds		 Tangible
fixed assets
£
-
8,553,345
5,226
13,852
-
-
-
-
8,572,423
62,187
8,634,610
Tangible
fixed assets
£
-
8,553,345
-
-
-
-
-
-
8,553,345
62,187
8,615,532
Investments
£
1,841,575
-
-
-
1,500,000
1,151,985
10,822,531
-
15,316,091
15,316,091

Investments
£
1,861,149
-
-
-
1,500,000
1,151,985
10,822,531
-
15,335,665
15,335,665		 Net current
assets
£
1,638,851
-
(258,456)
(27,148)
-
-
-
-
1,353,247
55,795
1,409,042
Net current
assets
£
1,638,851
-
-
-
-
-
-
-
1,638,851
55,795
1,694,646		 Total
£
3,480,426
8,553,345
(253,230)
(13,296)
1,500,000
1,151,985
10,822,531
25,241,761
117,982
25,359,743
Total
£
3,500,000
8,553,345
-
-
1,500,000
1,151,985
10,822,531
25,527,861
117,982
25,645,843

Page 38

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

24. Pensions

The charitable company operates a defined contribution plan and a group personal pension plan. The assets of both schemes are held separately from the group in independently administered funds. The pension cost charge of £119,328 (2020: £112,505) represents contributions payable to the funds.

25.

Material legacies

Legacy income is only included in incoming resources where receipt is reasonably certain and the amount is known with certainty, or the legacy has been received.

As at 31 December 2021 the group has also been notified of a number of legacies that are subject to life tenancies. These legacies have not been accrued for in the financial statements as the conditions of recognition had not been met. These legacies cannot be measured reliably however the best estimate of the value of these legacies is approximately £141,253 (2020: £151,533).

26. Reconciliation of net income/(expenditure) to net cashflow from operating activities

Net income for the reporting period
Adjustments for:
Depreciation charge
Profit /loss on disposal of fixed assets
Interest and dividend income shown in investing activities
Net gains on investments
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
nalysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)		 Group
2021
£
(1,111,884)
220,721
10,950
(398,226)
(1,170,466)
(1,771)
155,011
78,587
(2,217,078)
Group
2021
£
359,432
658,457
1,017,889		 Group
2020
£
(238,284)
218,117
12,330
(474,633)
(980,724)
1,004
(307,870)
9,344
(1,760,716)
Group
2020
£
192,969
806,512
999,481

27. Analysis of cash and cash equivalents

Page 39

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

28. Capital commitments

At 31 December 2021 the charitable company had no capital commitments (2020: £49,314). The prior year commitment related to ongoing building work relating to the design, supply and erection of an extension to existing building and accompanying car park. The work was completed during the current year with no further committed costs.

29. Related party transactions

The only related party transactions during 2021 are the transactions with The Horse Trust Trading Company Limited; a 100% wholly owned subsidiary and with the British Animal Rescue and Trauma Care Association CIC (BARTA); deemed a subsidiary on the basis of control. See notes 30 and 31 for the respective trading results of these subsidiaries for the year ended 31 December 2021.

At the year end 31 December 2021 there was a balance of £324,670 (2020: £210,536) owed from BARTA to the Charity.

During the year, there were no expenses of paid to Trustees (2020: £nil). No other payments were made to Trustees or any persons connected with them during this financial year or the prior period.

Page 40

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

30. Subsidiary results

The Charity owns the whole of the issued ordinary share capital of The Horse Trust Trading Company Limited, company number 08614961 and has control over British Animal Rescue and Trauma Care Association CIC, company number 08255580. Each entity is registered in England and details of their activities are given below.

The following results are for The Horse Trust Trading Company Limited;

Profit and Loss account
For the period ended 31 December 2021
Turnover
Cost of sales
Gross profit
Administrative expenses
Profit or (loss) for the financial year
Balance sheet
As at 31 December 2021
Fixed assets
Tangible assets
Current assets
Debtors
Cash at bank and in hand
Total current assets
Creditors: Amounts falling due within one year
Net current assets/(liabilities)
Total net assets/(liabilities)		 2021
£
53,020
(10,174)
42,846
(34,571)
8,275
2021
£
13,852
1,453
8,555
10,008
(37,156)
(27,148)
(13,296)		 2020
£
9,469
(2,185)
7,284
(12,893)
(5,610)
2020
£
11,006
224
21,456
21,680
(54,256)
(32,576)
(21,570)

Page 41

The Horse Trust

Notes to the financial statements For the year ended 31 December 2021 (continued)

31. Subsidiary results

(continued)

The following results are for British Animal Rescue and Trauma Care Association CIC.

Profit and Loss account
For the period ended 31 December 2021
Turnover
Cost of sales
Gross profit
Administrative expenses
Profit or (loss) for the financial year
Balance sheet
As at 31 December 2021
Fixed assets
Tangible assets
Current assets
Stocks
Debtors
Cash at bank and in hand
Total current assets
Creditors: Amounts falling due within one year
Net current assets/(liabilities)
Total net assets/(liabilities)		 2021
£
63,178
(13,192)
49,986
(124,367)
(74,381)
2021
£
5,226
3,000
13,271
55,232
71,503
(329,959)
(258,456)
(253,230)		 2020
£
31,670
(19,296)
12,374
(126,305)
(113,931)
2020
£
2,331
3,000
2,943
24,824
30,767
(211,944)
(181,177)
(178,846)

Page 42