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2022-12-31-accounts

Charity Registration No. 0231748 Company Registration No. 0347417

The Horse Trust

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

Group report and financial statements 31 December 2022

The Horse Trust

Legal and administrative information

Charity name The Horse Trust
Charity registration number 231748 Founded 1886, Incorporated 1938
Company registration number 0347417
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 (Resigned as Chair 28thSeptember 2022)
Professor J D Slater- Chair (Elected 28th September 2022)
Professor M Bowen (Resigned 23 June 2022)
Professor P Clegg
Mrs B Jones (Resigned 23 June 2022 & Re-appointed 28 June
2023)
Mr C Marriott
Lord R De Mauley
Ms L Mcgillycuddy
Professor B McGorum
Mr R Neal
Ms C Roddis
Professor D Archer (Appointed 28 June 2023)
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
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 (incorporating the strategic report) 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 2022

The Board of Trustees has pleasure in presenting its report and the financial statements for the year ended 31 December 2022.

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 the initial pages of this financial statements, 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 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 2022 (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 2022 (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 behaviorists, 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.

The Horse Trust (along with assistance from BARTA) has researched, planned, tested and implemented a new fire and evacuation plan for the Speen site considering the needs of visitors, employees and animals.

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 2022 (continued)

Research
Projects Supported
University of Liverpool
Royal Veterinary College
University of Edinburgh
University of Nottingham
Other
Liphook
Animal Health Trust
Lincoln
University of Bristol
Moredun Research
Roslin Institute		 No
10
6
3
4
2
2
1
1
1		 2022
£
No
240,415
8
97,968
1
51,041
1
20,004
2
18,500
1
17,368
16,109
1
15,243
5,390
2
1
1		 2021
£
248,001
14,000
28,032
34,441
3,502
47,454
22,745
13,458
6,595
30 482,039
18		 418,227

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 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 continued with 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 2022 (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 2022. 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

2022 has been an unsettled year for the charity with the aftereffects of the global pandemic and the cost of living crisis affecting all areas of the charity’s work.

Income streams such as legacies and investments were significantly affected. Although legacy cash receipts were higher than the previous year, there was still a delay in receiving solicitor’s notifications, probate and selling houses which did slow up the legacy pipeline in year. During 2022 The Horse Trust received legacies of £1,229,978 (2021 - £829,603).

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.

The Horse Trust’s team has worked hard through the year to control expenditure however the cost of living crisis and inflation rates means some expenditure has significantly increased during the year. The Senior Management Team has looked hard at all areas of expenditure and has made cutbacks during in year and in the plans for 2023.

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. At the year end the total amount held in investments was £11,775,976 (2021 - £15,316,091). It must be remembered that these values can only be taken as an indication of the value on this date.

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.

Page 5

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2022 (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 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 £2.9m.

Public relations and fundraising

During 2022 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. Costs have continued to be controlled throughout 2022 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 2023, 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. Planning is also underway to devise a new strategy to be agreed by the Board and to commence in 2024.

The Horse Trust will not be asking for new external research projects during 2023 but will be focusing on the internal research work being carried out by its own employees and looking at innovative ways to disseminate it. 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 finalise the first two phases of the HorseLife project and continue with the planning stage of 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.

Register of members

The register of members is available for inspection by members, free of charge, at the registered office of the Trust.

Statement of trustees’ responsibilities – charitable company

The trustees (who are also directors of The Horse Trust for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

Page 6

The Horse Trust

Report of the Board of Trustees for the year ended 31 December 2022 (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure to our auditors

Insofar as the trustees are aware at the time of approving our trustees’ annual report:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Saffery Champness have indicated their willingness to continue in office.

The report was approved by order of the Board of Trustees on 8 September 2023

………………………. J Slater - Chair

Page 7

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 2022 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 and the strategic 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 page 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.

Andrew Watkinson (Senior Statutory Auditor) for and on behalf of Saffery Champness

11 September 2023 .........................

Chartered Accountants

Statutory Auditors

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

Saffery Champness 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 2022

Unrestricted Restricted
Note
funds
funds
£
£
Income from
Donations and legacies
2
1,713,082
92,905
Charitable activities
3
80,664
-
Investment income
4
352,609
-
Rent receivable and
sundry income
5
132,171
-
Total
2,278,526
92,905
Expenditure on:

Raising funds
6
326,417
-
Charitable activities
7
3,408,267
109,305
Investment management
Costs
69,783
-
Total
3,804,467
109,305
Net gains/(losses) on
investments
Gains/(losses) on
Investment assets
17
(1,421,942)
-
Net Income/
(expenditure)
(2,947,884)
(16,400)
Transfer between funds
21
(115)
115
Total fund movement
(2,947,999)
(16,285)
Reconciliation of funds:
21
Total funds brought forward
25,241,759
117,982
Total funds carried forward 21
22,293,760
101,697		 Total
funds
Unrestricted Restricted
2022
funds
funds
£
£
£
1,805,987
1,288,087
61,090
80,664
49,912
-
352,609
398,226
-
132,172
102,957
-
2,371,432
1,839,182
61,090
326,417
300,663
-
3,517,572
3,711,002
23,912
69,783
82,666
-
3,913,772
4,094,331
23,912
(1,421,942)
1,170,466
-
(2,964,282)
(1,084,684)
37,178
-
-
-
(2,964,282)
(1,084,684)
37,178
25,359,741
26,326,443
80,804
22,395,461
25,241,759
117,982		 Total
funds
2021
£
1,349,177
49,912
398,226
102,957
1,900,272
300,663
3,734,914
82,666
4,118,243
1,170,466
(1,047,506)
-
(1,047,506)
26,407,247
25,359,741

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. 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 £3,012,302 (2021 – loss of £1,018,580).

Page 12

The Horse Trust

Consolidated balance sheet As at 31 December 2022

Note
2022
£
£
Fixed assets
Tangible assets
16
8,627,387
Investments
17
11,775,976
20,403,362
Current assets
Stocks
18
41,622
Debtors
19
1,737,240
Cash at bank and in hand
364,159
2,143,021
Creditors: amounts falling
due within one year
20
(150,923)
Net current assets
1,992,098
Net assets
22,395,461
Represented by
Funds
Unrestricted funds
21
General fund
2,963,911
Designated funds
Charitable fixed assets
8,607,269
Future grants
1,500,000
Awarded future grants
1,250,243
Capital fund
8,190,848
BARTA
(232,709)
Horse Trust Trading Company
14,202
22,293,764
Restricted funds
22
101,697
Total accumulated funds
23
22,395,461		 2021
£
£
8,634,610
15,316,091
23,950,701
41,405
1,160,509
359,432
1,561,346
(152,304)
1,409,042
25,359,743
3,480,426
8,553,345
1,500,000
1,151,985
10,822,531
(253,230)
(13,296)
25,241,761
117,982
25,359,743		 2021
£
£
8,634,610
15,316,091
23,950,701
41,405
1,160,509
359,432
1,561,346
(152,304)
1,409,042
25,359,743
3,480,426
8,553,345
1,500,000
1,151,985
10,822,531
(253,230)
(13,296)
25,241,761
117,982
25,359,743
23,950,701
1,409,042
25,359,743
3,480,426
8,553,345
1,500,000
1,151,985
10,822,531
(253,230)
(13,296)
25,241,761
117,982
25,359,743

The financial statements on pages 11 to 42 were approved by the Board of Trustees and authorised for issue on 8 September 2023 are signed on its behalf by:

……………………………..

J Slater

Chair

Company Number: 347417

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

Page 13

The Horse Trust

Balance sheet

As at 31 December 2022

Note
2022
£
£
Fixed assets
Tangible assets
16
8,607,269
Investments
17
11,795,550
20,402,820
Current assets
Stocks
18
39,722
Debtors
19
2,103,350
Cash at bank and in hand
233,917
2,376,989
Creditors: amounts falling due
within one year
20
(146,268)
Net current assets
2,230,721
Net assets
22,633,542
Represented by
Funds
Unrestricted funds
21
General fund
2,983,485
Designated funds
Charitable fixed assets
8,607,269
Future grants
1,500,000
Awarded future grants
1,250,243
Capital fund
8,190,848
22,531,845
Restricted funds
22
101,697
Total accumulated funds
23
22,633,542		 2021
£
£
8,615,532
15,335,665
23,951,197
38,405
1,505,355
295,645
1,839,405
(144,759)
1,694,646
25,645,843
3,500,000
8,553,345
1,500,000
1,151,985
10,822,531
25,527,861
117,982
25,645,843		 2021
£
£
8,615,532
15,335,665
23,951,197
38,405
1,505,355
295,645
1,839,405
(144,759)
1,694,646
25,645,843
3,500,000
8,553,345
1,500,000
1,151,985
10,822,531
25,527,861
117,982
25,645,843
23,951,197
1,694,646
25,645,843
3,500,000
8,553,345
1,500,000
1,151,985
10,822,531
25,527,861
117,982
25,645,843

The financial statements on pages 11 to 42 were approved by the Board of Trustees and authorised for issue on are signed on its behalf by: 8 September 2023

……………………………..

J Slater Chairman

Company Number: 347417

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

Page 14

The Horse Trust

Consolidated statement of cashflows As at 31 December 2022

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		 2022
£
(2,215,400)
352,609
-
(246,810)
(5,590,658)
(3,126,867)
2,569,590
-
-
-
-
354,190
1,017,890
1,372,080		 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

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 2022

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

1.2 Consolidation

The financial statements consolidate the results of the Charity Parent (The Horse Trust) 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. The group financial statements incorporate those of The Horse Trust and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 December 2022.

Page 17

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022

1. Accounting policies

(continued)

1.2 Consolidation (continued)

All intra-group transactions, balances, and unrealised gains on transactions between group companies are eliminated on consolidation. 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 £1,000 are capitalised at cost.

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.

Page 18

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022

1. Accounting policies

(continued)

1.8 Creditors and provisions

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.

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.

Page 19

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022

1. Accounting policies

(continued)

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.

1.14

Interest receivable

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.

Page 20

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022

1. Accounting policies

(continued)

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 21

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

2. Donations and legacies

Unrestricted
Restricted
2022
2022
£
£
Donations income
280,536
92,905
BARTA income
202,568
Legacies
1,229,978
1,713,082
92,905
3.
Income from charitable activities
Unrestricted
Restricted
2022
2022
£
£
Fundraising
33,192

Respite income
704

Training income
46,769

80,664

4.
Investment income
Unrestricted
Restricted
2022
2022
£
£
Income from investments
342,804

Bank interest
9,805

352,609

5.
Rent receivable and sundry income
Unrestricted
Restricted
2022
2022
£
£
Rent
6,285

Trading subsidiary income
96,317

Other
29,571

132,172
 Unrestricted
Restricted
2022
2022
£
£
Donations income
280,536
92,905
BARTA income
202,568
Legacies
1,229,978
1,713,082
92,905
3.
Income from charitable activities
Unrestricted
Restricted
2022
2022
£
£
Fundraising
33,192

Respite income
704

Training income
46,769

80,664

4.
Investment income
Unrestricted
Restricted
2022
2022
£
£
Income from investments
342,804

Bank interest
9,805

352,609

5.
Rent receivable and sundry income
Unrestricted
Restricted
2022
2022
£
£
Rent
6,285

Trading subsidiary income
96,317

Other
29,571

132,172
 Total
2022
£
373,441
202,568
1,229,978
1,805,987

Total

2022

£
-
33,192
-
704
-
46,769
-
80,664

Total

2022

£
-
342,804
-
9,805
-
352,609

Total

2022

£
-
6,285
-
96,317
-
29,571
-
132,172		 Total
2022
£
373,441
202,568
1,229,978
1,805,987

Total

2022

£
-
33,192
-
704
-
46,769
-
80,664

Total

2022

£
-
342,804
-
9,805
-
352,609

Total

2022

£
-
6,285
-
96,317
-
29,571
-
132,172		 Total
2021
£
456,396
63,178
829,603
1,349,177



-
-
-
-



-
-
-



-
-
-
-





Total
2021
£
25,667
24,245
80,664 49,912
Total
2022
£
342,804
9,805		 Total
2021
£
397,531
695
352,609 398,226
Total
2022
£
6,285
96,317
29,571		 Total
2021
£
6,257
53,020
43,680
132,172 102,957

Page 22

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

6.
Cost of raising funds
Unrestricted
Restricted
Total
Total
2022
2022
2022
2021
£
£
£
£
Cost of generating voluntary income
66,409
-
66,409
62,428
Public relations
545
-
545
12,699
Promotional material
2,044
-
2,044
6,670
Trading subsidiary costs
68,819
-
68,819
44,745
Support costs (see Note 12)
188,600
-
188,600
174,121
326,417
-
326,417
300,663
Basis of allocation for support costs is direct.
7.
Charitable activities expenditure
Unrestricted
Restricted
Total
Total
2022
2022
2022
2021
£
£
£
£
Home of Rest for Horses
1,964,255
42,757
2,007,012
1,909,796
Research costs
828,642
56,258
884,899
1,310,714
Education in Equine Welfare
341,187
10,290
351,477
257,955
BARTA costs
182,047
-
182,047
137,557
Governance (Note 12)
92,136
-
92,136
118,892
Total
3,408,267
109,305
3,517,572
3,734,914
Activities
undertaken
Support
Total
funds
costs
2022
£
£
£
Home of Rest for Horses
776,003
1,188,254
1,964,257
Research costs
574,173
254,469
828,642
Education in Equine Welfare
38,565
302,621
341,186
Governance
-
92,136
92,136
Total
1,388,741
1,837,481
3,226,221		 Total
2022
£
66,409
545
2,044
68,819
188,600		 Total
2021
£
62,428
12,699
6,670
44,745
174,121
326,417 300,663
Total
2021
£
1,909,796
1,310,714
257,955
137,557
118,892
3,734,914

Page 23

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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
Yard equipment and uniform
Vehicle expenses
Depreciation
Scientific research
Clinical scholarship
Other Grants
Science Diss
HorseLife
Education sponsorship
Best Practice
Providing professional
Training
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
£
£
£
77,135
6,030
96,757
0
63,919
62,342
25,240
185,673
21,789
31,587
205,530
250,801
158,828
72,409
25,163
66,972
16,743
11,924
7,083
2,816
66,409
547
2,044
182,047
68,819
1,745,343
92,136
188,600
3,453,950
92,136
188,600		 Total
2022
£
77,135
6,030
96,757
0
63,919
62,342
25,240
185,673
21,789
31,587
205,530
250,801
158,828
72,409
25,163
66,972
16,743
11,924
7,083
2,816
66,409
547
2,044
182,047
68,819
2,026,079
3,734,686		 Total
Basis of
2021 allocation
£
79,784 Direct
12,868 Direct
113,083 Direct
19,886 Direct
54,654 Direct
52,669 Direct
22,781 Direct
191,528
Direct
21,579 Direct
28,752 Direct
184,699 Direct
145,421 Direct
269,304 Direct
3,502 Direct
15,304 Direct
608,445 Direct
11,132 Direct
6,817 Direct
14,824
Direct
2,805 Direct
62,428
Direct
12,699 Direct
4,597 Direct
137,557 Direct
44,745 Direct
1,998,731 Direct
4,009,593

Page 24

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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
Royal Veterinary College
University of Edinburgh
University of Nottingham
Other
Liphook
Animal Health Trust
Lincoln
University of Bristol		 2022
£
250,801
158,828
72,409
25,163
66,972
254,469
828,642
2022
£
16,743
11,924
7,083
-
2,816
302,621
341,186
Grants to
Support costs
institutions
(see Note 12)
£
£
482,039
254,469
240,415
97,968
51,041
20,004
18,500
17,368
16,109
15,243
5,390
482,039		 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
Total
£
736,507






Page 25

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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
2022 apportionment
£
£
£
£
£
£
125,883
879,018
163,097
181,047
58,087
1,407,132
Staff time
892
11,149
871
2,004
213
15,129
Staff
226
2,819
220
507
54
3,826
Direct costs
9,558
68,927
15,725
28,333
6,559
129,102
Staff time
4,301
53,763
4,199
9,664
1,026
72,953
Staff
2,137
26,715
2,086
4,802
510
36,250
Staff
3,346
3,346
3,346
3,346
13,384
Equal split
1,371
1,371
1,371
4,113
Equal split
17,104
17,104
Direct costs
9,736
9,736
9,736
9,736
38,944
Equal split
1,740
1,740
1,740
15,000
20,220

13,262
13,262
13,262
39,786
Equal split
18,855
18,855
18,855
56,565
Equal split
822
10,273
802
1,846
196
13,939
Staff
3,242
40,526
3,165
7,284
774
54,991
Staff
93
5,258
4,799
4,289
1,817
16,256
Direct costs
4,534
4,534
Direct costs
5,890
5,890
5,890
5,890
23,560
Equal split
2,630
32,868
2,567
5,908
628
44,601
Staff
2,738
2,738
2,738
2,738
2,738
13,690
Equal split
188,600
1,188,253
254,469
302,621
92,136
2,026,079*

Page 26

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

pport 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		 2021
(continued)
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*

12. Support costs - 2021

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 27

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

13. Net incoming resources for the year

2022 2021
£ £
This is arrived at after charging or (crediting):
Rent receivable under operating leases
Land and buildings (6,285) (6,257)
Depreciation – owned fixed assets 243,965 212,935
Loss on capital – owned fixed assets 10,070 -
Auditors’ remuneration
Audit services 12,820 9,000
Non audit services 1,400 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
2022
£
29
19
8
2
58
Group
2022
£
1,440,117
125,287
129,102
1,694,506		 Group
2022
£
29
19
8
2		 Group
2021
£
29
19
2
1
52
Group
2021
£
1,346,518
120,636
119,328
1,586,482		 Charity
2022
£
30
20
-
-
50
Charity
2022
£
1,282,265
124,866
129,102
1,536,233		 Charity
2021
£
29
19
-
-
48
Charity
2021
£
1,211,735
118,591
119,328
58
1,449,654

All staff are employed by the group.

Page 28

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022 (continued)

14. Employees

(continued)

In 2022 there one employee earned between £110,000-120,000. (2021 one employee earned between £100,000 – £110,000).

The key management personnel for the group comprise of four individuals considered to make decisions on behalf of the Trustees. Total employee benefits of the key management personnel of the group was £305,539 (2021: £316,490).

No Trustees received remuneration during the year (2021: £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 2022
8,923,209
654,589
434,165
99,174
Additions
223,950
17,429
5,431
-
Disposals
(14,988)
-
-
-
31 December 2022
9,132,171
672,017
439,596
99,174
Depreciation
1 January 2022
887,210
252,995
254,496
81,824
Charge for the year
156,212
48,697
28,874
10,182
Disposal
(4,918)
-
-
-
31 December 2022
1,038,504
301,691
283,370
92,006
Net book values
31 December 2022
8,093,668
370,326
156,226
7,168
31 December 2021
8,036,000
401,594
179,669
17,350		 Total
£
10,111,137
246,810
(14,988)
10,342,958
1,476,525
243,965
(4,918)
1,715,571
8,627,387
8,634,613

Page 29

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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 2022
8,923,209
616,000
434,165
99,174
Additions
223,950
11,664
5,431
-
Disposals
(14,988)
-
-
-
31 December 2022
9,132,172
627,664
439,596
99,174
Depreciation
1 January 2022
887,210
233,484
254,496
81,824
Charge for the year
156,212
43,971
28,874
10,182
Disposal
(4,918)
-
-
-
31 December 2022
1,038,504
277,455
283,370
92,006
Net book values
31 December 2022
8,093,668
350,209
156,226
7,168
31 December 2021
8,035,999
382,516
179,669
17,350		 Total
£
10,072,548
241,045
(14,988)
10,298,605
1,457,014
239,239
(4,918)
1,691,335
8,607,270
8,615,534

Included within freehold property and improvements is land of £2,364,936 (2021: £2,364,936) which is not depreciated. Freehold property comprises property at Speen Farm, Langley Farm and Little Moseley Farm, Buckinghamshire.

Page 30

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

17. Investments

a.
Investment in subsidiary undertaking
Cost
1 January 2022
31 December 2022
Impairment
1 January 2022 and 31 December 2022
Movement in year
31 December 2022
Net book values
Brought Forward
Carried Forward
Group
2022
£
-
-
-
-
-
-
-		 Group
2021
£
-
-
-
-
-
-
-		 Charity
2022
£
19,574
19,574
-
-
-
19,574
19,574		 Charity
2021
£
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 31

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

17.
Investments
b.
Investment portfolio
Group
2022
£
Cost
1 January 2022
10,488,852
Additions at cost
3,126,867
Disposals
(4,662,432)
31 December 2022
8,953,287
Unrealised gain
1 January 2022
4,168,782
Movement in year
(2,354,014)
31 December 2022
1,814,768
Market value of quoted investments
31 December 2022
10,768,055
Other investment monies
Stockbroker open accounts
Capital account
431,014
Income account
576,907
31 December 2022
1,007,921
Total investments
11,775,976
c.
Analysis of realised and unrealised gain
Group
2022
£
Realised gain/(loss)
932,072
Unrealised gain/(loss)
(2,354,014)
Total net gains/(losses)
(1,421,942)		 Group
2021
£
12,526,914
2,865,398
(4,903,459)
10,488,853
3,997,177
171,605
4,168,782
14,657,635
266,701
391,756
658,457
15,316,092
Group
2021
£
998,861
171,605
1,170,466		 Charity
2022
£
10,488,853
3,126,867
(4,662,432)
8,953,287
4,168,782
(2,354,014)
1,814,768
10,768,055
431,014
576,907
1,007,921
11,775,976
Charity
2022
£
932,072
(2,354,014)
(1,421,942)		 (continued)
Charity
2021
£
12,526,914
2,865,398
(4,903,459)
10,488,853
3,997,177
171,605
4,168,782
14,657,635
266,701
391,756
658,457
15,316,092
Charity
2021
£
998,861
171,605		 (continued)
Charity
2021
£
12,526,914
2,865,398
(4,903,459)
10,488,853
3,997,177
171,605
4,168,782
14,657,635
266,701
391,756
658,457
15,316,092
Charity
2021
£
998,861
171,605
10,488,853
3,997,177
171,605
4,168,782
14,657,635
266,701
391,756
658,457
15,316,092
Charity
2021
£
998,861
171,605
1,170,466

Page 32

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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
2022
£
1,647,287
5,640,776
287,978
1,222,115
226,078
1,743,822
10,768,055		 Group
2021
£
2,383,950
8,253,000
342,164
1,324,779
441,348
1,912,393
14,657,634		 Charity
2022
£
1,647,287
5,640,776
287,978
1,222,115
226,078
1,743,822
10,768,055		 Charity
2021
£
2,383,950
8,253,000
342,164
1,324,779
441,348
1,912,393
14,657,634

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

tocks
Forage
Veterinary Drugs
Merchandise
Other		 Group
2022
£
6,519
23,398
9,805
1,900
41,622		 Group
2021
£
8,065
20,740
9,600
3,000
41,405		 Charity
2022
£
6,519
23,398
9,805
-
39,722		 Charity
2021
£
8,065
20,740
9,600
-
38,405

Page 33

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

19.
Debtors
Group
Group
Charity
2022
2021
2022
£
£
£
Income tax recoverable
53,160
77,899
53,160
Other debtors and prepayments
1,684,080
1,082,609
1,674,410
Amounts due from subsidiary
undertakings
-
-
375,781
1,737,240
1,160,509
2,103,351
All amounts shown under debtors fall due for payment within one year.
20.
Creditors: amounts falling due within one year
Group
Group
Charity
2022
2021
2022
£
£
£
Trade creditors
67,159
65,015
63,442
Other taxes and social security
costs
33,350
31,776
33,350
Accruals
50,413
55,513
49,476
150,923
152,304
146,268		 Charity
2021
£
77,899
1,067,886
359,570
1,505,355
Charity
2021
£
63,610
31,776
49,373
144,759

Page 34

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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 2022
£
3,480,427
8,553,345
(253,230)
(13,296)
1,500,000
1,151,985
10,822,531
25,241,762
117,982
25,359,744		 Incoming
resources
£
1,979,642
202,568
96,317
2,278,527
92,905
2,371,432		 Resources
expended
£
(2,827,087)
(244,475)
(182,047)
(68,819)
(482,039)
(3,804,467)
(109,304)
(3,913,772)		 Investment
gains
Transfers in
Transfers out
£
£
£
331,046
(115)
298,399
580,297
(1,421,942)
(1,209,742)
(1,421,942)
1,209,742
(1,209,857)
115
(1,421,942)
1,209,742
(1,209,742)		 Balance at
31 Dec 2022
£
2,963,913
8,607,269
(232,709)
14,202
1,500,000
1,250,243
8,190,847
22,293,765
101,697
22,395,462

Page 35

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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 2022
£
3,500,000
8,553,345
1,500,000
1,151,985
10,822,531
25,527,860
117,982
25,645,843		 Incoming
resources
£
1,979,642
1,979,642
92,905
2,072,547		 Resources
expended
£
(2,830,887)
(244,475)
(482,039)
(3,557,401)
(109,305)
(3,666,706)		 Investment
gains
Transfers in
Transfers out
£
£
£
331,046
(115)
298,399
580,297
(1,421,942)
(1,209,742)
(1,421,942)
1,209,742
(1,209,857)
115
(1,421,942)
1,209,742
(1,209,742)		 Balance at
31 Dec 2022
£
2,983,486
8,607,269
1,500,000
1,250,243
8,190,848
22,531,844
101,697
22,633,541

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 36

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (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 37

The Horse Trust

Notes to the financial statements

For the year ended 31 December 2022 (continued)

22. Restricted funds

Balance Balance Balance
brought carried
forward Received Applied forward
£ £ £ £
Health Horse Partnership 1,965 - (1,965)
-
Scholarship funding 17,269 - (9,257)
8,012
Scholarship funding - 47,000 (47,000)
-
CIC Formation 300 7,910 (8,325)
(115)
Field shelters 21,214 - (1,039)
20,175
Site development 62,187 - (1,280)
60,907
Horse walkers 8,176 - (1,812)
6,364
Vet equipment – Dental 4,371 - (507)
3,864
Vet equipment – Endoscope 2,500 - (196)
2,305
Storm Eunice - 37,995 (37,924)
71
Transfer from general fund - 115 -
115
117,982 93,020 (109,305)
101,697
23. Analysis of net assets between funds
Group
Tangible Net current
fixed assets Investments assets Total
£ £ £ £
Unrestricted funds
General fund 834,886 2,189,933 3,024,819
Designated funds:
Charitable fixed assets 8,546,362 8,546,362
BARTA 5,454 (238,163) (232,709)
Trading Company 14,663 (461) 14,202
Future grants 1,500,000 1,500,000
Future awarded grants 1,250,243 1,250,243
Capital fund 8,190,847 8,190,847
Fund transfers
8,566,479 11,775,976 1,951,309 22,293,764
Restricted funds 60,907 - 40,790 101,697
Total funds 8,627,386 11,775,976 1,992,099 22,395,461

Page 38

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022 (continued)

23. Analysis of net assets between funds

(continued)

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
£
8,546,362
8,546,362
60,907
8,607,269
Investments
£
854,460
1,500,000
1,250,243
8,190,847
11,795,550
11,795,550		 Net current
assets
£
2,189,933
2,189,933
40,790
2,230,722		 Total
£
3,044,393
8,546,362
-
-
1,500,000
1,250,243
8,190,847
22,531,845
101,697
22,633,541

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 £129,102 (2021: £119,328) 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 2022 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 (2021: £141,253).

Page 39

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022 (continued)

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
2022
£
(2,964,284)
246,810
10,070
(352,609)
1,421,942
783
(576,731)
(1,381)
(2,215,400)
Group
2022
£
364,159
1,007,921
1,372,080		 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

27. Analysis of cash and cash equivalents

28. Capital commitments

At 31 December 2022 the charitable company had no capital commitments (2021: £Nil). 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 2022 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 2022.

At the year end 31 December 2022 there was a balance of £346,091 (2021: £324,670) owed from BARTA and £26,690 (2021: £36,164) due from the Trading subsidiary to the Charity.

During the year, expenses were paid to five Trustees totalling £2,933 (2021: £nil) for reimbursed travel and subsistence costs. 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 2022 (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 year ended 31 December 2022
Turnover
Cost of sales
Gross profit
Administrative expenses
Profit or (loss) for the financial year
Balance sheet
As at 31 December 2022
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)		 2022
£
96,317
(18,186)
78,131
(50,633)
27,499
2022
£
14,663
722
30,014
30,736
(31,196)
(460)
14,203		 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)

Page 41

The Horse Trust

Notes to the financial statements For the year ended 31 December 2022 (continued)

31. Subsidiary results

(continued)

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

Profit and Loss account
For the year ended 31 December 2022
Turnover
Cost of sales
Gross profit
Administrative expenses
Profit or (loss) for the financial year
Balance sheet
As at 31 December 2022
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)		 2022
£
202,568
(50,405)
152,163
(131,642)
20,521
2022
£
5,454
1,900
8,949
100,228
111,076
(349,239)
(238,163)
(232,709)		 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)

Page 42