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2023-12-31-accounts

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THE LONDON CITY MISSION
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Company Number: 04284615
Charity Number: 247186
LONDON
BECAUSE
JESUS
NEEDS
ANNUAL REPORT 2023
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THE SPIRIT OF THE SOVEREIGN LORD IS ON ME, BECAUSE THE LORD HAS ANOINTED ME TO PROCLAIM GOOD NEWS a? TO THE POOR.

HE HAS SENT ME TO BIND UP THE BROKEN-HEARTED, TO PROCLAIM FREEDOM FOR THE CAPTIVES AND RELEASE FROM DARKNESS FOR THE PRISONERS, TO PROCLAIM THE YEAR OF THE LORD’S FAVOUR AND THE DAY OF VENGEANCE OF OUR GOD, TO COMFORT ALL WHO MOURN, AND PROVIDE FOR THOSE WHO GRIEVE IN ZION— TO BESTOW ON THEM A CROWN OF BEAUTY INSTEAD OF ASHES, THE OIL OF JOY INSTEAD OF MOURNING, AND A GARMENT OF PRAISE INSTEAD OF A SPIRIT OF DESPAIR. ISAIAH 61:1-3 (NIV)

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~~CONTENTS~~

DIRECTORS REPORT

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||| |---|---| |1. LETTER FROM THE CEO AND CHAIRMAN|5| |2. STRATEGIC REPORT|7| |2A. OUR PURPOSE AND VISION|7| |2B. WHAT MATTERS TO US|8| |2C. MISSIONAL ACTIVITIES|8| |2D. KEY EVENTS IN 2023|25| |2E. OUR IMPACT|27| |2F. FINANCIAL SUSTAINABILITY|30| |2G. STRATEGIC FOCUS AND FUTURE DIRECTION|32| |3. OPERATIONAL REPORT|33| |3A. ENABLING MISSION|33| |3B. PROPERTY MANAGEMENT|35| |3C. FINANCIAL REVIEW|36| |3D. COMPLIANCE|38| |3E. PRINCIPAL RISKS AND UNCERTAINTIES|40| |4. GOVERNANCE|41| |4A. GOVERNANCE OF THE LONDON CITY MISSION|43| |4B. SUBSIDIARY COMPANIES|43| |4C. MANAGEMENT STRUCTURE|43| |4D. PAY POLICY FOR SENIOR STAFF|44| |4E. DIRECTORS’ RESPONSIBILITIES|44| |4F. AUDITORS|44| |4G. DIRECTORS’ STATEMENT|44|

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5. INDEPENDENT AUDITORS’ REPORT 45 6. GROUP STATEMENT OF FINANCIAL ACTIVITIES 48 7. GROUP & PARENT BALANCE SHEETS 49 8. GROUP CASHFLOW STATEMENT 50 9. NOTES TO THE ACCOUNTS 51

1. LETTER FROM THE CEO AND CHAIRMAN

DEAR FRIEND

We face a task of great urgency. Over four million people in London today are heading towards an eternal destiny without the opportunity to hear of the saving grace to be found in Jesus Christ.

we share is such incredibly good news when we realise our spiritual bankruptcy in the face of the ‘day of judgment’ spoken about in Isaiah 61:2.

Those we seek to reach are often much more willing to recognise their poverty before the Lord’s judgment - there is much we can learn from them.

Before His ascension, the Lord Jesus gave us the Great Commission to ‘Go and make disciples of all nations’ (Matthew 28:19). The Lord has brought the nations to our doorstep in London and yet many are still to hear the gospel.

We are on our knees, praying for a move of the Spirit in London. As we increasingly partner with local urban churches, we are longing by God’s grace to see the truth of His word set hearts ablaze for mission to those on the margins of London.

When God moves, miracles happen - every salvation is a miracle! We are a small mission full of all kinds of missionaries. Some of us are people who came to faith in prison, who have been homeless, refugees, who have worked in the sex industry. We dare to intercede to the Lord for a movement of His Spirit amongst the 4 million people who would never otherwise hear of Jesus Christ.

Together, let us keep working in the Great Commission; praying, giving and sharing the gospel, encouraged that the Lord Jesus has said that ‘He will be with us always until the end of the age’. (Matthew 28:20)

That is our heartbeat. This is what drove us 189 years ago and this is what still drives us today.

Those 4 million unlikely to hear the life-changing message of Jesus Christ are the poorest and most forgotten among us. Tragically, in London today, gospel poverty and socio-economic deprivation go hand in hand.

Thank you for your partnership in the gospel.

Yours in Christ Jesus,

Yet, the Lord Jesus quoted Isaiah 61:1, ‘the Lord has anointed me to proclaim good news to the poor’ (Luke 4:18). The message

Graham Miller Chief Executive, London City Mission.

Richard Montgomery Chairman of the Board of Trustees

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“We’re seeing so much happening as a result of LCM partnership. And many people in the church are excited about the spiritual battles we’re winning and seeing new people coming to church.”

PHIL WOOLLEY, PASTOR, RYE LANE CHAPEL

“London City Mission are there for us. Not only to provide evangelism training but also to encourage churches to get involved in evangelism and preaching the gospel. They are very useful. And they are always ready whenever the church needs them.”

PASTOR IMMANUAL CHRISTIAN, HOLY TRINITY HOUNSLOW

“London City Mission aligning its ministry to work with, in, and through the local churches is a hugely significant development in Biblical gospel partnership.”

TREVOR ARCHER, DIRECTOR OF THE FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES (FIEC) IN LONDON

“London City Mission’s approach, in working alongside the local church, envisioning, equipping, and enabling, is an answer to prayer. This kind of partnership and generous sharing of resources will strengthen the Church, get God’s attention and bring salvation and healing to our broken communities.”

DELROY POWELL, NATIONAL PRESIDING BISHOP OF THE NEW TESTAMENT ASSEMBLY

“One of the things I love about LCM, they know that when you come into a community, you’ve got to understand it. We found their mapping exercise of the local area invaluable - especially understanding its spiritual history. It’s helped so much in the way we relate to people here.”

ED DIX, MINISTER,

ST. LUKE’S CHURCH, MILLWALL

2. STRATEGIC REPORT

2A. OUR PURPOSE AND VISION

WE LONG TO SEE JESUS KNOWN ACROSS EVERY COMMUNITY IN LONDON. GOD’S URGENT MESSAGE OF SALVATION IS FOR EVERYONE, BUT HIS HEART FOR THOSE ON THE MARGINS IS ESPECIALLY CLEAR IN SCRIPTURE.

They lack the family member to call when they face eviction from their home. The friend waiting for them outside the prison gates. The community they once enjoyed, now replaced by loneliness in their older age. They lack the knowledge of ‘the right thing to say’ when they enter a new environment. The language skills to find help for their family.

The Spirit of the Sovereign Lord is on me, because the Lord has anointed me to proclaim good news to the poor. He has sent me to bind up the brokenhearted, to proclaim freedom for the captives and release from darkness for the prisoners, to proclaim the year of the Lord’s favour and the day of vengeance of our God, to comfort all who mourn, and provide for those who grieve in Zion— to bestow on them a crown of beauty instead of ashes, the oil of joy instead of mourning, and a garment of praise instead of a spirit of despair

Perhaps more than anything, they lack hope.

It’s clear throughout the Bible that God has a heart for people who are marginalised and overlooked – people whose physical poverty can help expose their helplessness before Him.

We know it’s here, and only here – recognising our helplessness before a Holy God – that Jesus meets us, and invites us to repentance and into eternal hope in Him.

And yet, tragically it’s in London’s most deprived communities, on the doorsteps of almost every church in the city – that people are least likely to hear this invitation. Here, Jesus is someone they once heard about a long time ago, just another prophet, a myth… or a complete mystery.

Isaiah 61:1-3 (NIV)

Our vision is that Jesus is known in every one of these communities, that everyone is invited to follow Him. This can only happen if the local church thrives and flourishes as it grows in number and diversity. We long to serve churches in partnership, building them up to reflect the many cultures and backgrounds of the city, and become a more powerful witness of God’s love to anyone looking in.

As much as ever, London is home to people whose everyday experience is one of rejection, helplessness and often shame. People who face daily challenges, often invisible to others - they lack resources, forced to get by from one day to the next.

But it goes deeper than that.

They lack status, connections, community… options. Things many of us take for granted.

We are building up and equipping the Church to share the urgent message of salvation – to share His offer of forgiveness and new life.

The time is now.

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2. STRATEGIC REPORT

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2. STRATEGIC REPORT
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Working as a catalyst alongside local churches in the most deprived areas of London, following the leading of the Holy Spirit, we help to build ministries that make connections with the communities around them.

Together we follow Christ’s example in seeking out people – especially those overlooked by others – and sharing the gospel in a relevant and loving way. We support the church in pursuing intentional, committed relationships, where Christians can effectively share their faith in Jesus, and demonstrate it practically.

People from marginalised backgrounds have a valued place as part of God’s people, and an important contribution to bring to our church families. So, we help churches build welcoming cultures so that when someone accepts an invitation, it’s a place where they can grow and thrive… regardless of their background.

All that we do is rooted in prayer, completely dependent on the work of the Holy Spirit. And we pray that as the gospel is heard and experienced, many men, women and children – who may never previously have stepped into a church – would come to follow Jesus… and invite others to do the same.

“AS LONG AS IT IS DAY, WE MUST DO THE WORKS OF HIM WHO SENT ME. NIGHT IS COMING, WHEN NO ONE CAN WORK.” John 9:4

2B. WHAT MATTERS TO US

OUR VALUES ARE:

London needs Jesus! The ministry of The London City Mission (LCM) is to share the good news of Jesus Christ with those in London unlikely to otherwise hear about it. We do this by working alongside the Church in London, helping churches build bridges into communities in their local areas where Jesus Christ isn’t widely known. We believe that our witness is compromised if we are not following Christ in the way we work and relate to others.

LCM has a set of values which shape the way we work and relate to each other, to the Church and to the people and communities we engage with.

ROOTED IN CHRIST

We are prayerfully dedicated to doing God’s will and living His way, according to His word.

CHRIST-LIKE LOVE

We look not to our own interests but to the interests of others because we are united as brothers and sisters in Christ.

GOD-GLORIFYING EXCELLENCE

We pursue the best that we can be to glorify God and serve each other in all we do.

SPIRIT-INSPIRED COURAGE AND PERSEVERANCE

We stand firm, push through, and pay the price for the sake of Christ and the gospel.

2C. MISSIONAL ACTIVITIES

We have a vision to see Jesus known in every community in London. To see this vision realised, we are completely reliant on the work of the Lord. And so, our first and most foundational ‘activity’ as a mission is prayer – in partnership with Christians across the UK and beyond.

As such, LCM has a developed Theory of Change – a framework for mission impact , which outlines the problem we are facing, the missional activities we believe will address this problem and the outcomes we prayerfully seek from these interventions.

However, it is also wise and Biblical to define the steps which we need to take to have our desired impact as an organisation.

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2. STRATEGIC REPORT hs LCM FRAMEWORK FOR MISSION IMPACT ~~e~~ e

2. STRATEGIC REPORT hs

SITUATION PEOPLE ACTIVITIES SUCCESS FIRST STAGE SECOND STAGE OUTCOMES ADDRESSED ENGAGED DELIVERED FACTORS OUTCOMES CREATED CONTRIBUTED TO What problem does Who does What does What will make What will the second stage of LCM address? LCM engage? LCM deliver? LCM effective? outcomes be? outcomes be? Mobilisation of the church Spread of the gospel Church engagement The UK church can Church leaders and Develop and release External reputation Christians in London and beyond demonstrate a London, and then the wider UK, sees a growth face challenges living Christians in London envisioning thought LCM need credibility transformed faith and theology: Belief in God’s in organised and organic collective mission out God’s mission to and beyond leadership and respect from plan for salvation and that becoming more like share Jesus with people Christians and the God includes becoming missional to people Churches understand local needs and visibly who may not otherwise wider church who may not otherwise hear the gospel share their vision for mission to people who may not otherwise hear the gospel hear the gospel – who Churches, local are in the city’s most communities and Calling the church Regular activities taking place, led by deprived communities Christian organisations Expertise in mission Christians in London and beyond demonstrate a churches or local mission initiatives to serve LCM need to maintain transformed heart: Personal conviction for the spiritual, emotional and physical needs of thought leadership mission to people who may not otherwise hear people who may not otherwise hear the gospel Provision of thought and practical expertise the gospel in their local community Christians may not leadership and in mission to people have the conviction, Direct engagement trained missionaries otherwise unlikely to hear capability, or capacity alongside churches through ministry the gospel to engage in missional church partnerships. Christians in London and beyond demonstrate a More of people who may not otherwise hear the activities to people who Missionaries go out transformed ability: gospel hear about Jesus People unlikely to share Jesus ~~C~~ may not otherwise hear and share the good ~~e~~ High quality of delivery s hear the gospel the gospel news with people in LCM need to deliver communities least likely their work in a way to hear the gospel, with that is effective for the People who may not otherwise hear Christians in London and beyond demonstrate Friendship evangelism is often the focus of Priority characteristics • Young people church, building up the Christians in the local local church in their churches and people we are serving missional activities to people who may not otherwise transformed behaviours: Frequency of everyday the gospel, come to know Jesus Christians yet this • Islam and other outreach. hear the gospel, encouraging others to do the same doesn’t encourage the Strong organisational More people who may not otherwise hear the gospel religions crossing of social, culture become part of a church community and are discipled religious and cultural • Homeless and LCM need to live out Local churches have a sustainable, structured, boundaries to people who may not • Seniors and estatesmarginalised Serving the church with humility, and act their values, engage from communities least likely to hear the gospel innovative missional team which invites people otherwise hear • Diaspora with integrity to follow Jesus, welcoming and discipling those Churches increase in diversity in membership and leadership as they become more mission focused who respond training in mission Other mission agencies yh focus on Christians who speak about their faith ~~SS~~ I LINE OF ACCOUNTABILITY 10 11

STORY

2. STRATEGIC REPORT

STOCKWELL BAPTIST CHURCH

Every Wednesday and Friday, a team from Stockwell Baptist Church, trained by missionary Denzel Gaisie, goes out into the local estate to meet people on their doorsteps.

“FOR MANY PEOPLE WE MEET, THIS IS THEIR FIRST TIME HEARING THE TRUE MESSAGE ABOUT JESUS AND A SEED IS BEING PLANTED.”

The ministry has seen the church connect with new people in their local community, opening up exciting new opportunities to share the grace of God in Jesus. In a single three month period, there were 41 gospel conversations, many of which were sharing the good news of Jesus Christ for the first time.

Hear the full story at lcm.org.uk/stockwell

LCM FRAMEWORK FOR MISSION IMPACT

SITUATION ADDRESSED

The Bible tells us that the Church is God’s primary means of reaching people with the gospel.

Our heart as evangelists is to work to build up the potential of local churches to reach people, especially those in deprived communities, with the hope of Jesus. And our prayer is to see God at work, with churches growing in number and diversity as they’re joined by people from these communities.

But obstacles hinder this potential from being released.

Christians can lack the conviction, capability, or capacity to engage in urban mission, and there is little evangelism support for people who lack confidence.

Where there is evangelism training, it tends to be directed to a Christian’s existing network of friends, family and colleagues, rather than to people from other backgrounds.

ACTIVITIES DELIVERED

To release the incredible potential of the local church, LCM’s response is to both serve and call the local church in London and beyond, as we step out into the Great Commission together.

We act as a servant of the Church .

We do this by building gospel partnerships with churches across London and beyond.

Having identified areas of the city where the greatest gospel poverty exists, we place Christian evangelists – whom we have trained in urban mission – into these areas to reach communities with the gospel, alongside local churches.

We serve the vision of the local church, building up the church in urban outreach, and sharing the good news of Jesus alongside members of the church. This usually involves working with the church to:

We serve the church in a spirit of humility and mutual generosity. We want to invest in mission in the most deprived areas of London, and do not pass the full costs directly to our partner churches – we subsidise them in line with the churches’ income, and instead ask for their generous engagement in our partnership together in the gospel.

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A GLOBAL CITY, A GLOBAL CHURCH

Almost every church we partner with is home to people from other parts of the world. And our experience is that this diversity can make for more effective outreach. Churches whose members have a shared heritage or origin from elsewhere in the globe are a great blessing to London today and hold much of the potential for seeing London reached for Christ.

We’re increasingly partnering with diaspora congregations. This involves resourcing them to share the gospel with the people yet to hear the gospel in their local area. This could involve connecting them with other local churches from other cultural backgrounds to do mission together, training church members in cross-cultural outreach ministry, or supporting them to start church services in different languages.

We complement and accelerate our on-the-ground ministry by providing training in urban mission both to individual Christians and to churches, increasingly building links and partnerships with a wide range of supportive evangelical churches throughout the UK.

This training is delivered through church visits, in-person events and conferences throughout the year.

It’s also delivered through the creation and publication of training content to Christians via our digital channels. Our how-to guides (made available on our website) are an example, distilling expertise and insights from missionaries who specialise in various areas, such as reaching seniors with the gospel.

PEOPLE REACHED

ALL OUR INTERVENTIONS ARE DESIGNED TO EQUIP CHRISTIANS TO SHARE THE GOSPEL AMONGST SPECIFIC COMMUNITIES WITHIN LONDON.

IT REMAINS A TRAGEDY THAT GOSPEL POVERTY IN LONDON IS GREATEST IN THE AREAS WHERE THERE IS ALSO THE GREATEST SOCIO-ECONOMIC DEPRIVATION

ESTATES

Nearly a quarter of households in London live in social housing – meaning most of the capital’s churches have an estate close by. Especially amongst white workingclass communities, the church is often associated with mistrusted authorities. The result is that many residents go their whole lives without hearing who Jesus really is.

SENIORS

People can be increasingly neglected and lonely as they get older, and consequently have fewer opportunities to hear the gospel. We come alongside churches to meet older people in their local area, to build friendships and to start gospel conversations which are so often fruitful.

YOUNG PEOPLE

PEOPLE FROM OTHER RELIGIOUS BACKGROUNDS

One in four Londoners are followers of other religions; over half are Muslims. We work alongside local churches to build connections with people around them - whether that’s Bengali Muslims in Tower Hamlets or Punjabi Hindus in West London - engaging them with the gospel in an effective and loving way.

HOMELESS AND MARGINALISED

Whether it’s people who are homeless, women exploited by the sex industry or people who have been in prison, each one has their own story to tell – often involving rejection. There are often huge social barriers amongst these men and women to hearing the gospel in a way they can understand – we help churches to address these and reach out with Christ-like love.

In London today, we estimate that just one in twenty children go to church, and around half don’t even have a Christian friend to invite them to church activities. And yet our experience shows that children are incredibly open to talking about Jesus Christ and exploring who He is.

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WITHIN ALL OUR MINISTRIES, WE CALL THE CHURCH TO THE GREAT COMMISSION.

“THEN JESUS CAME TO THEM AND SAID, ‘ALL AUTHORITY IN HEAVEN AND ON EARTH HAS BEEN GIVEN TO ME. THEREFORE GO AND MAKE DISCIPLES OF ALL NATIONS, BAPTISING THEM IN THE NAME OF THE FATHER AND OF THE SON AND OF THE HOLY SPIRIT, AND TEACHING THEM TO OBEY EVERYTHING I HAVE COMMANDED YOU. AND SURELY I AM WITH YOU ALWAYS, TO THE VERY END OF THE AGE.’” Matthew 28:18-20 (NIV)

Our training of churches is based on thought leadership – sharing Biblically based resources and insights, from our rich experience of urban mission, to Christians and churches in London and beyond. We share these resources and insights both face to face, through in-person training and practical demonstrations of ministry in action, and also via mass-media channels. The purpose of this is to call, build up and inspire Christians to local urban mission.

An example of this is our Everyday Evangelism podcast, where a missionary specialising in reaching Muslims, may talk about the burden of legalism which Islam demands, and encouraging Christians to respond with compassion, sharing their experience of finding love and grace in Jesus Christ. It could be a blog from our Chief Executive highlighting data showing an increased confidence in the Church amongst non-Christians, and encouraging Christians to invite their friends to a service. Or it could be in less formal settings – when a missionary shares their experience and insights with a group of church members as they’re about to step out together into a local estate.

SUCCESS FACTORS

In order to make our interventions effective, LCM seeks to ensure that:

• We maintain and build our external reputation amongst Christians as trusted experts in urban evangelism. LCM has built this reputation over decades and is well known by many Christians, but there is also a need to build this reputation with Christians less familiar with our history and expertise.

• We sustain our expertise in mission by staying ahead of changes in the shifting cultures and attitudes of London, adapting ministry approaches accordingly and continuing to place a high priority on the Biblical training of our missionaries.

• We maintain a high quality of delivery . Within a church partnership, this means ensuring that we understand the vision and culture of a church, and the make-up of their local community – and delivering a partnership which meets both of these needs. It also means that our resources distil the expertise of our missionaries and that the content speaks to the challenges that Christians can face in sharing the gospel, helping them to be more effective in their evangelism.

Underpinning all the above, LCM needs to continue our strong organisational culture, living out our values.

Finally, and most fundamentally, all of our ministries are undertaken in partnership with God through the leading and guiding of His Spirit, acknowledging that this is first and foremost the work of Christ, which LCM and churches are invited into. Likewise, the approach we take with churches is informed and directed by faithful discernment of Scripture .

2. STRATEGIC REPORT

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MAKING MISSION POSSIBLE

A KEY CONTRIBUTOR TO ENSURING OUR MINISTRIES ARE EFFECTIVE IS THE SUPPORT FROM CHURCHES IN LONDON AND BEYOND.

We invite evangelical churches, wherever they are, to join us in partnership for the gospel in London. These two-way relationships involve supporting missionaries in prayer and financially. And it also involves LCM regularly communicating the impact their support has made possible. It can also involve LCM training and inspiring the church to share the good news of Jesus themselves.

We build long-term relationships, opening up channels of communication with designated church members (Church Reps), and equipping them with practical evangelistic resources, inspiring stories, training opportunities and updates on what God is doing in London, to share with the rest of their church.

As a result of the above, we desire to the see two stages of outcome.

FIRSTLY, THE MOBILISATION OF THE CHURCH.

We desire to see a process of transformation both amongst individual Christians and corporately within individual churches.

The process starts with acquiring knowledge (head), leading to a stirring up of desire (heart), accompanied by learning to confidently share more about Jesus Christ (hands). This will lead to Christians and churches going out (feet), both individually and ultimately within missional church teams to share the best news ever – the hope we have in Christ!

The first step involves a richer theology of God’s plan for salvation and the call upon Christians to play their part within the Great Commission. This head knowledge leads to a greater conviction for mission and a compassion for those who are yet to hear the gospel (heart).

Our experience is that this leads to a change in behaviour where Christians, whom we also train in effective evangelism, confidently share their faith on a more regular basis.

“‘EVERYONE WHO CALLS ON THE NAME OF THE LORD WILL BE SAVED.’ HOW, THEN, CAN THEY CALL ON THE ONE THEY HAVE NOT BELIEVED IN? AND HOW CAN THEY BELIEVE IN THE ONE OF WHOM THEY HAVE NOT HEARD? AND HOW CAN THEY HEAR WITHOUT SOMEONE PREACHING TO THEM? AND HOW CAN ANYONE PREACH UNLESS THEY ARE SENT? AS IT IS WRITTEN: ‘HOW BEAUTIFUL ARE THE FEET OF THOSE WHO BRING GOOD NEWS!’” Romans 10:13-15 (NIV)

At a church level, we expect to then see local congregations build sustainable, structured, innovative missional teams who invite people from communities least likely to hear the gospel to follow Jesus, welcoming and discipling those who respond.

This whole process contributes to a transformed identity in understanding our purpose as God’s people.

SECONDLY, AS A RESULT OF THE MOBILISATION OF THE CHURCH, WE ANTICIPATE THE SPREAD OF THE GOSPEL. This means that:

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Thanks to the generosity of our partners, we can support and train Pioneers to develop outreach ministries in their own urban churches, to help share the gospel with others. As of July 2023, 49 evangelists; 35 men and 14 women from a total of 39 churches, equipped to mobilise the local church for mission, have graduated from LCM’s two-year Pioneer Programme.

Students’ self-evaluation feedback from the July 2023 graduates shows strong growth in confidence across a range of areas of ministry competencies vital for mission. All graduates scored themselves ‘very’ or ‘extremely confident’ both in sharing the gospel with people from different religions and developing and training believers to work alongside them in a community outreach project.

At least 49 new outreach ministries have been pioneered across London since the start of the Pioneers Training Programme 10 years ago. The programme combines Christian discipleship and classroom learning with practical experience, to offer a holistic education in urban ministry.

The Pioneers Programme aims to raise up more people from marginalised backgrounds to play a valuable ministry role in urban churches and communities across London and beyond, where they are currently not well represented in ministry leadership positions.

THE PIONEERS TRAINING PROGRAMME

“I am married with five children, four of them still at home. I have no savings, wealthy relatives or family members, and my church wasn’t in a position to cover my salary. I couldn’t find a way to leave work or put it on hold to explore what I believed I was being called to pursue. My education was at a secondary school with average marks and no higher education. There are very few options, if any, for someone like me to get Biblical evangelistic training that also provides an income to take care of a family. The fact that this course was funded was essential to me being able to attend The Pioneer Programme.” Robert Bridges

THE PIONEERS TRAINING PROGRAMME IS A SPECIALISED PROGRAMME FOR PEOPLE WHO ARE FROM THE COMMUNITIES WE ARE SEEKING TO REACH WITH THE GOOD NEWS OF JESUS. PIONEERS MAY NOT HAVE MUCH FORMAL EDUCATION, MAY HAVE ENGLISH AS A SECOND LANGUAGE, HAVE NO ACCESS TO FUNDS, OR MAY EVEN HAVE A CRIMINAL RECORD, AND SO TRADITIONAL ROUTES INTO MINISTRY WOULD NOT BE ACCESSIBLE FOR THEM.

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STORY

WEBBER STREET DAY CENTRE

WEBBER STREET IS LCM’S DAY CENTRE FOR PEOPLE WHO ARE HOMELESS – BASED JUST AROUND THE CORNER FROM WATERLOO STATION. WE WELCOME UP TO 70 GUESTS A DAY, SEEKING TO GIVE THEM NOT ONLY RELIEF FROM LIFE ON THE STREETS, BUT ALSO HELP IN TAKING THE FIRST STEP OUT OF HOMELESSNESS.

Our Corner House ministry, situated above the day centre, provides short-term accommodation for five men looking to turn the corner on homelessness.

We seek to meet the emotional and spiritual needs of guests, as well as the physical ones, to help restore some of the dignity that life on the streets has taken from them and to share the lifetransforming news of Jesus.

In 2023, we welcomed 10,939 visits from guests through the centre’s doors – each receiving a warm meal, as well as other practical support.

694 guests had gospel conversations with Webber Street Staff and church volunteers and 232 accepted an invitation to a Bible study.

This vital ministry is delivered in partnership with local churches – some of which, supported by Webber Street missionaries, host regular dinners for homeless guests at the centre.

Many of the guests are helped onto the next step out of homelessness, which for Ada, also involved a journey of faith.

“Ada* always tried to find safe public places to sleep while homeless, but nevertheless experienced some serious physical trauma. Just a few months ago she came into Webber Street and we referred her to a local church’s night shelter. She immediately felt safe. She started attending a Bible study there, and has since given her life to Jesus! Pray for us to help more people like Ada, to connect them with local churches providing practical and spiritual help.”

Quote from Anni Uddin, Homeless and Marginalised Ministry Director

THE CORNER HOUSE

Anderley was one of the growing number of men and women in London sleeping rough every night.

He came through the doors of Webber Street day centre, and started to build friendships. The team were able find short-term supported accommodation at LCM’s Corner House, and now he has his own home and a job.

“I NEVER TOOK MUCH NOTICE OF SUNDAY SCHOOL WHEN I WAS YOUNGER. EVERY MORNING AND EVERY NIGHT HERE [AT THE CORNER HOUSE] WE DID BIBLE STUDIES, SO I’M STARTING TO UNDERSTAND MORE. I’M NOT THERE YET, BUT I’M SURE I WILL BE ONE DAY.”

In 2023, guests like Anderley had 694 gospel conversations with Webber Street Staff and church volunteers and, for those who wanted to know more about Jesus, staff were privileged to study the Bible with guests 232 times.

Hear the full story at lcm.org.uk/anderley

*Name has been changed

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MINISTRY REFERENCE PANEL (MRP) MEMBERS

Trevor Archer FIEC (MRP Chair)

Rev Dr Girma Bishaw London Project Co-Director; Reality Church pastor

Bishop Delroy Powell New Testament Assembly, former Presiding Bishop

Dr Pamela Brown – Director, All Souls Serve the City- All Peterside Souls Langham Place

Pastor Mary Pastor, True Vine Centre RCCG; McCauley national youth lead RCCG

Apostle Guy Miller Commission sphere (New Frontiers); leader Westminster Chapel

Pastor Osh Ong Former Senior Pastor, Chinese Church in London

Archbishop-Elect Incoming Archbishop, Apostolic Moses OwusuPastoral Congress; Director, Christ Sekyere Theological Centre (CTC)

Pastor Young Joo Lee Senior Pastor, God’s Vision Church (Korea)

WIDER PARTNERSHIP IN MISSION

We thank God for the growing number of partnerships and relationships LCM has with churches and organisations across London and beyond. Complementing these relationships which our missionaries are developing with a variety of churches across the city, we continue to press ahead building networks with gospel-hearted organisations, as together we seek to share the good news of Jesus Christ with those least likely to hear it.

During the last year, we continued to press on in the work of raising our profile and partnering for the sake of the gospel. A key plank of this was our continued partnership with the City Prayer Breakfast, where we had enhanced visibility and an opportunity to address the audience as part of their annual event. We are delighted to build on this developing relationship - LCM Director of Ministries, Rev. Dr Jason Roach has been invited to give the keynote Bible talk at the 2024 Prayer Breakfast. This event has proved a strategic entry point to sharing LCM more widely across the City of London and beyond.

As we continued to develop our relationship with the Evangelical Alliance and particularly their One People Commission (a group of senior diaspora church leaders and national strategic Christian leaders) we were delighted at their request to host their 10 year anniversary celebration at our central office (Nasmith House), welcoming senior Christian leaders and hearing from them. This gave us an opportunity to share our work with them and introduce them to our new Everyday Evangelism online resource hub.

Our Ministry Reference Panel (MRP) remains a key way that we gather input from and listen to the church in London. We continue to strengthen our relationships with the diverse senior evangelical church leaders who serve us through their membership on our MRP. The deepening of our relationships in this space was demonstrated when we worked together with the MRP to create and deliver a conference focused on reaching different generations of people in diaspora churches across London.

Alongside this, by God’s grace we have found ourselves positioned centrally within the wider City Mission Movement (CMM), a membership of 15 City Missions across the UK and Ireland. Last year, our Director of Networks, Carl Knightly, was asked to Chair the CMM, which he is now doing as part of his LCM role. This wider national network provides an excellent opportunity to point to our work in London and also to share our online resources across the UK, as well as raise the profile of the work of LCM more broadly, as we seek to call more people across the nation to pray for our work.

In all of this, we continue to recognise God’s providence and grace as we seek to mobilise churches in sharing the gospel with people and communities least likely to hear the good news of Jesus.

Pastor Alex Brito Senior Pastor, Mosaic Multicultural Church

Dr Cornelius Alalade RCCG senior regional pastor; Redeemed Christian School of Mission

Rev Lis Goddard Vicar of St James the less, Pimlico Johnny Prime FIEC London leader (incoming)

Pastor Chrishanthy Bethany Faith Ministries, Southall Sathiyaraj

Pastor Tony Uddin Senior Pastor Tower Hamlets Community Church; AOG

2D. KEY EVENTS IN 2023

2023 was a difficult year for the people of London. A cost-ofliving crisis created more demand for foodbanks, homeless shelters and drop ins. Global events continue to rapidly increase the number of displaced people arriving in London. Meanwhile, charity and church budgets were squeezed more tightly by inflation, and by donations that have in many cases failed to return to pre-pandemic levels.

Amid this storm, there is a great gospel opportunity. And the Holy Spirit is powerfully at work.

The Lord has been using the London City Mission to preach ‘good news to the poor’ and equip churches in a timely way for much needed ministry in the hardest hit parts of the capital. There is a growing awareness of the need for the Church to bring practical help as part of sharing the message of Christ. This has given us a platform to remind the Church of London of the gospel poverty that faces a city where almost half the population have no Christian friend to tell them the gospel.

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2. STRATEGIC REPORT

2E. OUR IMPACT

RYE LANE CHAPEL

Linda (pictured) met missionary Doug on her doorstep.

“SHE STARTED TO POUR OUT HER ANGER AND FRUSTRATIONS AND HOW CHRISTIANS HAD TREATED HER IN THE PAST. HER STORY IS UNIQUE, BUT IT’S AMAZING HOW MANY PEOPLE WE MEET WITH SIMILAR EXPERIENCES,” SAYS DOUG.

Doug connected Linda with Catherine, whom he had been training in evangelism. Catherine came alongside Linda, followed up with Doug’s encouragement and guidance, and also invited her to church… where Linda then gave her life to Jesus and got baptised.

LINDA SAYS “FOR THE FIRST TIME IN MY LIFE, I HAVE A FATHER WHO LOVES ME…”

Hear the full story at lcm.org.uk/linda

MINISTRY REVIEW AND STRATEGY

Our impact and capacity continues to grow following the postpandemic launch of a new approach to partnering with local churches. Our heart is to see the gospel go out to the margins; for churches to build bridges into communities in their local area where there isn’t a Christian witness.

During 2023, we partnered with 71 evangelical churches across a range of denominations, located in or near the most deprived areas of London. Working with the local church leaders, we have sought to share and serve their vision for local mission. We have enabled the development and building of sustainable teams made up of committed church members whom we can then encourage and train - building them up for urban mission.

We are now delighted to be handing over evangelistic ministry leadership to local church partners. We have fully mobilised seven churches to confidently reach out to their neighbours, crossing social, religious and cultural barriers with the hope of Christ. This means our teams can move on to partnering with new churches that are seeking to work together, accelerating our impact across London.

Alongside the work missionaries do on the ground, we are creating resources and providing in-person training to complement and accelerate their ministry. Once developed, some of these resources can then be digitally shared with urban churches across London and beyond at no additional cost, allowing us to be increasingly effective.

We thank God that ten gifted and experienced gospel workers joined us as ministry staff in 2023, with recruitment of more underway. Please pray for them as they seek to raise the prayer and financial support needed to enable flourishing ministries

amongst people least likely to have heard of the life-changing truth about Jesus Christ.

Every person and organisation who partners with us in gospel ministry helps keep gifted, called and trained evangelists working in some of London’s most deprived communities. By God’s grace, we continue to innovate within our ministries as we adapt to the ever-changing people of London, each of whom carries the same great gospel need as the generations before.

We are prayerfully dedicated to sharing the good news of Jesus, working in partnership with churches and going to the least, the last and the lost. We remain committed to our call to glorify God and, by His great mercy, to see the salvation of many in London.

MINISTRY CHURCH PARTNERSHIP IMPACT

Last year, LCM greatly expanded its network of ministry church partnerships to 71 (up from 33 in 2022). Each individual church partnership is unique as we seek to serve the vision of the church and align with the gospel needs of the local area.

A church partnership typically involves one or more LCM missionaries, a church frontline outreach team and a larger number of committed church member volunteers, and is focused on one or more specific outreach ministries. Behind the frontline mission team, we seek to work with the church leadership to inspire a committed, prayerful congregation who are growing as welcoming, inclusive and intercultural churches where new believers can be discipled, belong and thrive.

In 2023, as a result of our ministry church partnerships, we were grateful for the Lord’s leading as we served the church in bringing:

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2. STRATEGIC REPORT

1,133 EVANGELISTIC OUTREACH ACTIVITIES

we developed or ‘turbo-charged’, together with our partnership churches.

THESE ACTIVITIES WERE MADE POSSIBLE BY

CHURCH VOLUNTEERS

– at least 457* people engaged and built up by LCM missionaries as part of their church’s local outreach (church volunteers made at least 4,552 volunteering actions across all activities).

This impacted people in communities 457* where Jesus Christ is not known by bringing at least:

RELATIONAL CONNECTIONS

with people who are unlikely to otherwise know a Christian

17,231

GOSPEL CONVERSATIONS, many of which will be sharing the good news of Jesus Christ for the first time

5,185

Looking to 2024 and beyond, we see the exciting potential for long-term gospel impact across London. Already, the number of Christians built up for evangelistic outreach in our partner churches well exceeds our number of active LCM ministry staff (100 people) and we are seeing church members growing and maturing as they are discipled in their outreach ministries.

ST CUTHBERT’S CHURCH

Elim, from St Cuthbert’s church, Haringey, is part of a team trained and led by missionary Daniel, which goes out and meets people on their doorsteps.

“I CAN’T STOP SPEAKING ABOUT JESUS, BECAUSE OF WHAT I’VE SEEN GOD DOING THROUGH DANIEL,” SAYS ELIM.

Together they visited homes in the parish, starting conversations about faith, and leaving residents with a copy of Luke’s gospel. As minister Mark Jones-Parry explains, they’ve started to see fruit.

“ONE YOUNG MAN WALKED IN ON SUNDAY MORNING BECAUSE HE’D READ LUKE’S GOSPEL AND WANTED TO MEET WITH SOMEBODY AND UNDERSTAND WHO THIS JESUS WAS.”

Hear the full story at lcm.org.uk/elim

*The recorded total turnout for all these activities was 4,552 and we know that at least 457 different volunteers participated, filling the team places within these missional church teams. The structure of our church partnerships means that we cannot perfectly track individual church members, so undercounting is inevitable.

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SHARING THE GOOD NEWS WITH CHILDREN

London City Mission has been coming alongside local churches, in conjunction with Counties UK ®, to help churches build relationships with their local school to share the gospel through the LIFE exhibition.

Hundreds of school children attend the multimedia event, taking them on an interactive journey using technology to introduce them to the life of Jesus.

In Tower Hamlets, more than half of the children that visited were from a Muslim background.

IMPACT SUMMARY

2F. FINANCIAL SUSTAINABILITY

The London City Mission (LCM) carefully stewards the resources God provides through our partners in the gospel. We currently have an underlying operating cash shortfall of approximately £3.8m per year, which is the difference between our expected income levels from donations, legacies and investment income and our current operating expenditure.

Properties that are no longer required to support the current ministry of LCM are allocated to the Ministry Sustainability Fund and recognised as investment properties. Sales of these properties are then used to fund our deficit, keeping our ministry sustainable in the short term. Clearly this cannot be sustained indefinitely, and our cash shortfall needs to be eliminated before the Ministry Sustainability Fund is exhausted.

The LCM Board agreed on a revised financial sustainability objective in July 2023 to cover the next 10 years. The Mission intends to:

“Steadily reduce the Annual Cash Shortfall to approximately nil by the mid-2030’s, using the Ministry Sustainability Fund to cover the deficit until our donations and other income increase to enable us to fully cover our costs.”

We plan to do this by growing our level of annual donation income from individuals, churches and trust funds who share our vision. Without a growth in such income, we will be unable to sustain the current level of front-line mission activity in the long term.

The generosity of supporters who provide for gospel mission in so many ways – gifts, grants, fundraising and legacies – is vital to sustaining the work of LCM and we are very grateful to everyone who partners with us in the gospel.

“THESE KIDS GROW UP BEING TOLD JESUS IS JUST A PROPHET,” SAYS MISSIONARY CHARLIE MACDONALD. “ONE MUSLIM BOY SAID IN RESPONSE TO HEARING THE STORY OF THE PARALYSED MAN, ‘YES, ONLY GOD CAN FORGIVE SINS!’ THIS STARTED A CONVERSATION ABOUT WHO JESUS REALLY WAS!”

Hear the full story at lcm.org.uk/life

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2. STRATEGIC REPORT

2G. STRATEGIC FOCUS AND FUTURE DIRECTION

‘Let the glory of God and the salvation of souls be your chief, your only aim’ were the words of David Nasmith, who founded London City Mission in 1835. This continues as our heartbeat as we partner with churches across London to see the good news shared in communities where Jesus Christ isn’t known.

People from communities most cut off from a Christian witness are overwhelmingly situated in London’s most deprived areas, however Jesus Christ says, ‘the gospel is good news for the poor.’

For mission to be effective, we often work with churches to bring a practical demonstration of the love we proclaim. In all ministry, our goal is always to prayerfully build meaningful connections to share the best news ever – the amazing news of God’s love in Jesus.

Our focus is to see the churches we partner with establish front-line teams of church volunteers, going out with the gospel, supported by a prayerful, welcoming community that will sustain mission to those on the margins long after our missionaries move onto other churches.

“Then he said to his disciples, ‘The harvest is plentiful, but the workers are few. Ask the Lord of the harvest, therefore, to send out workers into His harvest field.’” Matthew 9:37-38

As London changes, our ministries innovate and adapt. Ahead of our next five-year plan, we are evaluating how we are best using our biggest asset; our people. As the gospel need in London rapidly grows around us, this is a season of increasing refinement and focus as we prayerfully seek to ‘...build up the Church for works of service’ (Ephesians 4:12).

At the heart of our future plans is the conviction that an intercultural church, where all cultures are welcomed and shape the overall culture of the community, is the future of mission. This brings a powerful witness to a divided world. Looking outwards at London’s changing landscape, our desire is to increasingly partner, with the Lord’s blessing, in bringing brothers and sisters in Christ from across the globe, enriching the Church in London.

We are thankful to the Lord for all he is doing by His grace across London today. We continue to see a growing movement, praying together for outpouring of His mercy on the least, the last and the lost.

HE SAID TO THEM, “GO INTO ALL THE WORLD AND PREACH THE GOSPEL TO ALL CREATION. WHOEVER BELIEVES AND IS BAPTISED WILL BE SAVED, BUT WHOEVER DOES NOT BELIEVE WILL BE CONDEMNED.”

Mark 16:15-16 (NIV)

3. OPERATIONAL REPORT

3A. ENABLING MISSION

We also enjoyed hosting special events such as our Thanksgiving Service, which was a great encouragement as over six hundred people joined us in person at Westminster Chapel, and around two thousand people gathered online to praise God together.

Fundraising and Supporter Partnerships

As we step out into the Great Commission, serving the Church and seeking the lost, we are deeply encouraged by those who partner with us to make this ministry possible. We consider supporters a vital part of the team alongside us as they pray, give and volunteer, and we deeply value every partnership we have.

COMMUNICATIONS

In 2023, LCM continued to inspire and engage with our various audiences, sharing the need for this vital gospel ministry with supporters and the wider Church in London and beyond.

We are grateful for God’s provision through the faithfulness of those partners, who stood with us during another difficult season, to shine the light of the gospel in the darkness of London. Donation income in 2023 totalled £2.8m, a reduction of £0.08m from 2022 (£2.9m). It is worth mentioning that in 2023, whilst remaining firm friends of LCM, our two biggest historic donors weren’t able to repeat their gifts which meant that hundreds of additional gifts were needed for our income not to reduce. We are grateful to God for His provision and thankful for every penny generously given. We are encouraged that this diversified supporter base puts us in an even better position to grow income than at the same time last year.

We did this by:

Through the great kindness of those special supporters who wanted to share a message of eternal hope in Christ through a gift in their will, our legacy income during 2023 was £2.3m (down from £4.7m in 2022). Income from gifts in legacies makes a significant difference to the amount of gospel mission LCM is able to do and we rejoice in the many people who, by God’s grace, join the family of God as a lasting legacy of such gifts.

LCM staff work hard to connect supporters with what God is doing in London today, and 2023 was an opportunity for us to get out and connect with the evangelical church. We were grateful to have the opportunity to speak online and in person in 339 churches across the nation, hold prayer meetings, attend conferences, give insights into what is happening through reports, videos and letters, host supporters to meet our team, organise a sponsored sleepout, a sponsored walk, and create a number of events for church leaders.

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3B. PROPERTY MANAGEMENT

Our experience of ministry is that it is more effective when missionaries live and worship in the communities that they serve – we therefore choose to house our missionaries, which is costly but necessary. Over many decades, through the generosity of supporters, the Lord has provided LCM with properties for use in serving the gospel. Some of these are used to house current and retired missionaries, others are used as bases for missional activity, some are venues for churches, and some provide a rental or investment income which is invested in ministry across London.

CHRISTIAN CENTRE DISPOSALS AND DEVELOPMENT

The Property Disposal Programme continues to progress the sale of properties no longer needed for ministry. Working with our professional advisors, LCM is pursuing an appropriate approach to disposal of each property identified as no longer needed by LCM. In some cases, this is a straight disposal, often to a church or other existing user. In other cases, we are forming partnerships with developers to seek planning consent for development of the site, thereby enhancing the disposal proceeds for LCM.

STAFF HOUSING

Three properties were purchased to house staff in 2023 (two in 2022), whilst 7 residential properties (4 in 2021) no longer required for LCM ministry were sold. We continue to realign our portfolio of properties to best meet the needs of LCM’s ministry. By the end of 2023, 10 (15 at end 2022) properties were rented-in to house missionaries where we did not have a suitable property available and were unable to acquire a suitable property for financial or operational reasons. An ongoing focus for the Estates team is to reduce our use of rented properties by acquiring properties to house our missionaries to reduce our operating costs and improve the security of tenure for our staff.

During 2023, five Centres were sold (two in 2022), three of which were to churches and two to developers. A contract was exchanged for the sale of another two centres on a subject to planning basis (two in 2022) and the developers are working on obtaining planning consents to allow these sales to complete.

Following the completion of the Hoxton House development in Hoxton the sale of the final flat returned to LCM was completed in January 2023 following the sale of the other two flats in 2022. One of the non-residential spaces in this development has now been let to a church with a further space being marketed for nursery use. Once fully let, our intention is to sell the freehold of this development.

RETIREMENT HOUSING

LCM provides retirement housing for those missionaries who, by 2012, had achieved 20 years’ service with the Mission. At the end of 2023, 39 properties (38 at end 2022) were provided for the use of retired missionaries or their spouses, with one having been sold and two purchased in 2023. While we no longer offer this to more recently employed missionaries, the support of current retirees remains an important function of our property team.

In aggregate, these disposals generated £6.8m for LCM in 2023 (£5.5m in 2022). These property sales provide the necessary cash to fund our cash deficit until we can grow our donation income to cover the ongoing cost of our work.

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3C. FINANCIAL REVIEW

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DONATIONS 2.9
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2022 2022
INCOME COSTS
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The London City Mission (LCM) are deeply thankful to God for His provision in 2023. LCM’s operational income (excluding gains on sales of tangible fixed assets), decreased to £6.4m in 2023 from £8.8m in 2022, due to a significant decrease in legacy income to £2.3m (£4.7m in 2022). Just over £2.3m of the 2022 legacy income was from a single legacy so this reduction was anticipated, and our forward planning is based on a more typical level of legacies of £1.5m - £2.0m per annum.

Donation income decreased slightly to £2.8m in 2023 from £2.9m in 2022. Whilst disappointing, this was due to the loss of two of our largest donors early in 2023, which was offset by underlying growth in our remaining donor base, an encouraging trend for our future income pipeline. Continued substantial growth in donation income is a key target in LCM’s financial plan. We saw a 3% growth in the net number of active donors, which is a welcome increase and contributes positively towards our longer-term financial sustainability goal. Income from investments (rents and dividends) and other sources grew slightly to £1.3m in 2023 (£1.2m in 2022).

The accounts also include a £1.7m gain from sale of tangible fixed assets (£1.3m in 2022). This is primarily from residential properties being sold to be replaced by other residential properties in areas closer to LCM ministries. In line with accounting standards, the difference between the book value of operational properties sold and their sale price is recognised as income in the year of sale. This reported income is a result of the substantial increases in property prices since the properties were originally acquired. However, because replacement properties are acquired at current market prices this does not in practice result in a cash surplus for LCM. LCM invested £3.5m in 2023 in purchases of tangible fixed assets, the majority of which was providing housing for missionary staff.

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Fundraising costs increased from £0.7m in 2022 to £0.9m in 2023, due in part to rapid inflation. A key strategic focus for LCM is growing our base of donors and we are visiting more Christian conferences and investing in other engagement with potential new partners to achieve this. Costs of generating income from property and investments was £0.5m in 2023 (£0.5m in 2022).

LCM’s income was used for a range of ministry activities, with charitable expenditure totalling £10.3m in 2023 (£9.2m in 2022), excluding the costs invested in our Christian Centre Developments. This increase was primarily due to the recruitment of new missionaries to fill posts left vacant following the reorganisation of the missionary teams in 2020 and inflationary cost pressures.

Overall, LCM had a deficit of £4.3m in 2023 (deficit of £0.5m in 2022) before gains and losses on investments. This deficit highlights the need to increase donation income to achieve long term financial sustainability, and the necessity of the investments held in the Ministry Sustainability Fund to fund the cash shortfall whilst income growth is accomplished.

A loss of £3.8m was recognised on our valuation of our investment property portfolio which is being disposed of through our Property Development Programme. This is due to a more challenging environment for property development projects. This loss was offset by a £0.3m gain recognised on investment property disposals. During the year we disposed of £6.8m of investment property, primarily as part of our Property Disposal Programme, and received an investment property valued at £0.6m as part of a legacy.

During the year our marketable security investment portfolio managed by Investec grew by £1.6m due to £0.3m in gains

and receipt of a legacy of £1.3m in the form of a share portfolio. During the year £1.75m of fixed term bonds held in our investments matured and the proceeds were taken into our short-term cash reserves to improve our operational flexibility.

The proceeds of sales of investment properties and maturing bonds were used to fully repay our bank debt which was £1.8m at the end of 2022, reducing our ongoing interest expenditure. The remaining proceeds were used to fund our operating deficit.

LCM’s operational fixed assets, used to directly support the ministry needs of LCM, reduced slightly to £27.0m (down from £27.2m in 2022). An additional £3.5m of properties were purchased to reduce our reliance on rental properties to house missionaries, offset by £1.0m of disposals, £2.0m of assets transferred to Investment property and a depreciation charge of £0.7m.

LCM’s total group funds decreased to £63.3m at the end of 2023 from £70.7m a year earlier. The cash balance increased to £2.4m at the end of 2023 from £1.6m at the end of 2022, representing just under 3 months of operating expenditure. £2.5m was drawn from the Ministry Sustainability Fund to fund losses in the general fund, in line with the policy agreed by the Board of Directors. This left a balance of £6.4m in general reserves at the end of 2023, down from £7.2m at the end of 2022.

PENSION PROVISION

The defined benefit pension scheme closed to all new and existing employees in 2006. In 2023, LCM did not make any contributions to the scheme (nil in 2022) as there is currently no actuarial deficit. In June 2022, the charity and pension scheme trustees jointly appointed Lane Clark & Peacock (LCP) to advise on a bulk annuity purchase to cover the defined benefit pension scheme’s liabilities, known as a scheme buy-in. This would eliminate the ongoing costs of operating the scheme, which are borne by LCM, and any risk of a deficit arising in future, while maintaining security for members of the scheme. £1.5m has been set aside in the Pension Deficit Fund to cover LCP‘s estimate of the costs of this process. Once the liabilities are fully insured then the pension scheme trustees would be expected to wind-up the scheme.

Following a formal quotation process a bulk annuity contract was signed with Aviva in May 2024. To fund the purchase of this contract the scheme assets have been liquidated and LCM made a contribution of £0.5m to fund the initial premium. It is anticipated that a further contribution of approximately £0.1m will be needed to cover the final premium once a data verification process has been completed. It is estimated that there will be a further £0.4m required to cover the costs of the scheme buy-out and wind up, which will be paid directly by LCM, the majority of which are anticipated to be paid in 2024.

RESERVES POLICY

Under the risk adjusted general reserves policy, the Directors reviewed the target in 2023 and, due to the operational deficit, decided to maintain it at between £6m and £7m, which represents 7 to 8 months of operating costs. General reserves at the end of 2023 were £6.4m (£7.2m in 2022), which is within the policy range. This was achieved by drawing £2.5m from the Ministry Sustainability Fund.

The Ministry Sustainability Fund is a designated fund set aside outside of the general reserves to cover future deficits until LCM is able to break-even with its operating income covering its operating costs. The Ministry Sustainability Fund amounted to £30.5m at the end of 2023 (£33.0m at the end of 2022). The Directors expect to draw on this fund to cover operating deficits into the mid- 2030s as LCM reduces the operating deficit from the current underlying level of around £4m per annum.

DEBT POLICY

To accommodate fluctuations in cash flow, the Directors had previously authorised the raising of up to £10m of debt to support its cash needs, and LCM had taken a £2m term loan secured against 3 properties. Following progress in the Property Disposal Programme, LCM used the proceeds of property disposals to repay the outstanding balance of the loan. LCM does not currently foresee a need to raise debt finance.

CASH AND GOING CONCERN

The Directors of LCM confirm that in their view LCM has access to sufficient cash resources to cover its expenditure for the foreseeable future. The Directors acknowledge that there are financial risks to the organisation including elevated inflation, a possible slowdown in the UK economy and falling property prices. These could increase LCM’s costs, reduce donation income and reduce proceeds from sale of property.

At the end of 2023, LCM held £9.1 m in liquid assets, comprising cash or marketable securities that can be liquidated at short notice, which amounts to around 7 months of operating expenses. A further £2.0m of receipts are anticipated from known legacies where probate has been received and sufficient information is available to reliably estimate the amount due to LCM. The Property Development Programme is forecast to provide more than £5m of cash receipts in 2024. If necessary, further cash can be obtained by either accelerating the disposal of properties currently let out commercially or borrowing against the value of these properties.

Having reviewed these factors, the Directors believe that LCM has access to the resources needed to ensure that LCM continues as a going concern.

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3D. COMPLIANCE

STATEMENT ON FUNDRAISING

The London City Mission (LCM) greatly values the support it receives in so many ways from so many different people and organisations - we could not fulfil our objectives without the financial and prayer support that we receive from you each year. Supporters are vital partners in this ministry, so we seek to be grateful, respectful, and relational in all our interactions.

We prioritise thanking donors as soon as possible and seek to communicate the impact of donations to supporters through our letters, magazines, e-newsletters, and bespoke publications. We build trust with supporters by being honest and transparent in our communications. Individuals must opt in to receive communications from LCM unless they reasonably meet the criteria of legitimate interest, where there is clear evidence of their recent interest in our work. We provide opportunities for individuals to opt out from any of our communications in clear and easy ways.

LCM values our supporters and takes complaints seriously. Our records show that we received four complaints about our fundraising from supporters or members of the public in 2023. Two complaints were due to people inappropriately being asked to make a gift and were investigated by the database manager. One complaint was made by a donor about the time it took to acknowledge their gift; it was found that the letter was posted but had gone astray in the postal service. Lastly there was a complaint made by relatives of a legacy donor about our contact with an executor and we have changed how we approach executors as a result.

In all cases we listen to the experience of the supporter, seek to reflect, learn and apologise where we have fallen short of our ideals. Time taken to acknowledge gifts has been an issue this year which we are working to resolve with the employment of more dedicated resource.

We used one contracted specialist fundraiser in 2023 who personally aligns with our Statement of Faith and Conduct and works to adhere to the Fundraising Promise. We occasionally use the services of trusted external consultants who align with our charitable purposes and values.

LCM is registered with the Fundraising Regulator and we pay the fundraising levy.

STATEMENT ON DATA PROTECTION

LCM is committed to ensuring that all personal data is kept safe and used in a way that individuals are aware of and would reasonably expect. We aim to be clear about how we use all personal data and to give individuals a choice of what they would like to receive from us, which channels they receive this through and how often. We always seek to provide clear and easy ways for people to stop receiving communications from us. We have a Data Protection Officer who reports directly to the CEO. Staff training in both data protection and cyber awareness is in place across the Mission.

We have a Privacy and Fair Use Policy (www.lcm.org.uk/privacy) and continue to upgrade our IT network and practices, to ensure all personal data is secure in line with industry standards and regulations.

PUBLIC BENEFIT

The Directors of LCM confirm that they have had regard to the guidance contained in the Charity Commission’s General Guidance on Public Benefit when reviewing LCM’s aims and objectives and in planning future activities.

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3E. PRINCIPAL RISKS AND UNCERTAINTIES

The Board and Leadership Team completed an extensive annual review of the risk register.

The risk register continued to be a means for the Board not only to identify risks, but also an effective means to prioritise and mitigate them wherever possible.

The DPO and IT team continue to work closely together to mitigate potential cyber-attacks. All staff are due to complete online Cyber Awareness Training by the end of Q2 2024. The email protection system implemented in 2022 has improved mitigation of phishing and other email related cyber risks. Two-factor authentication continues to be implemented via secure authenticator apps in addition to strong passwords on all staff office accounts.

FINANCIAL AND FUNDRAISING RISKS

PEOPLE-RELATED RISKS

FUNDRAISING

The London City Mission (LCM) continues its strategy of partnering with more evangelical Christians and churches to reach marginalised Londoners with the gospel. Making progress on this strategy requires strong, increasing financial support from an increasing number of gospel partners. Plans are underway to increase our reach by raising greater awareness of the work of LCM throughout the evangelical church and provide audiences with compelling opportunities to support mission in London. We are planning not only to retain, but also to increase supporters’ engagement through the giving of money, prayer and time to the Mission’s goals. The new fundraising strategy and recruitment to the Fundraising Team, started in 2020, continued to see fruit in 2023 through increasing growth in the number of those partnering in the gospel with LCM through their giving.

Work is progressing on identifying and widely communicating clear examples of where supporters’ giving is making an impact for the gospel. Legacy gifts make a significant difference to ministry in London and continue to be welcomed by the Board. Plans to actively connect with, and appreciate, potential legacy givers are being developed.

FINANCIAL

The potential likelihood of increases in costs due to macroeconomic factors such as higher inflation, is recognised and measures taken to mitigate these. LCM’s financial sustainability objective continues to have an emphasis on income growth and operational efficiency. The continued receipts from sales of LCM properties releases funds to be invested in the Mission’s strategy.

The Directors prioritise the good stewardship of LCM funds through strong financial controls. The Finance Subcommittee continues to review the control infrastructure to ensure high standards are maintained at all times.

DATA PROTECTION

The DPO (Data Protection Officer) continues to report directly to the CEO and change in this area starts from the top of the charity. Inperson data protection training has been completed at an executive level and is also scheduled at Board level by the end of Q2 2024. An objective to complete in-person data protection training for all staff by the end of Q4 2024 is on track. There continues to be improvement in the culture around data privacy and security at the Mission. LCM continues to improve its data management, not only seeking to be compliant with GDPR and other legislation, but handle data robustly as a valued resource of the charity.

SAFEGUARDING

Safeguarding, for both staff and those the charity is aiming to reach with the gospel, is of paramount importance at LCM. The annual review and update of the safeguarding policy and procedures by both the Human Resources (HR) dept and the HR Board Subcommittee has been completed. The safeguarding risk of a “serious incident of child, vulnerable adult or staff member abuse involving LCM” continues to be on both the LT and Board priority risks section of the risk register, leading to it being given particular attention when reviewing on a quarterly basis. The specialist case management safeguarding software solution, ‘My Concern’ continues to be used across the Mission to robustly and confidentially allow reporting of safeguarding concerns and support the subsequent management of any reported concerns.

STAFF WELLBEING

LCM staff work and minister in demanding urban environments over a sustained period of time, and they require consistent professional and pastoral support. The charity seeks to improve staff wellbeing through meetings of staff with their line managers. The People, Wellbeing and Safety Forum continues to meet bimonthly and is chaired by the Director of People and Organisational Development with staff representatives from across the Mission. A dedicated online Wellbeing Hub, continues to be developed for and by staff, making a range of helpful resources accessible. The HR Board Subcommittee also provides accountability and support at a strategic level to the LCM Leadership Team, as they seek to engage with their Christian colleagues in line with the LCM organisational values.

CHRISTIAN VALUES

LCM has a history going back to 1835 as an evangelical mission agency seeking to share the gospel with the marginalised of London. The four LCM Values (God glorifying excellence; rooted in Christ; Christ-like love; and Spirit inspired courage and perseverance) continue to be at the root of the thinking and behaviours across the organisation and are foundational to our success in this endeavour. Based on scripture the four LCM Values recognise the necessity of doing God’s gospel work in the power of God’s grace looking to God for the fruit of its work. To this end the LCM Values are embedded in the organisational culture from recruitment in job descriptions and onboarding process through to ongoing annual appraisals. The Mission recognises the need to be rooted in Christ through daily prayer meetings and mutual spiritual encouragement in monthly Team Days and the annual Week of Prayer.

4. GOVERNANCE

REGISTERED OFFICE:

Directors and professional advisors:

The London City Mission 175 Tower Bridge Road London SE1 2AH

All Trustees acted as Directors of The London City Mission and were also the members of The London City Mission. The Directors who served during the year were as follows: -

Directors and dates of changes:

REGISTERED CHARITY NUMBER:

247186

REGISTERED COMPANY NUMBER:

4284615

Status:

The London City Mission is a charity registered in England and Wales and a company limited by guarantee registered in England and Wales. The London City Mission is governed by its Memorandum and Articles of Association. Incorporated on 10 September 2001, the company took on the charitable activities, assets and liabilities of The London City Mission, an unincorporated association and registered charity (Charity Number 247186), on 1 January 2003.

The Company operates under the working name ‘London City Mission’.

Objects:

The objects of the Charity are for the public benefit, to further such exclusively charitable purposes according to the law of England and Wales, as the Trustees in their absolute discretion from time to time determine, and in particular (but without prejudice to the generality of the foregoing), to advance and extend the knowledge of the gospel among the inhabitants of London and its vicinity (especially amongst those living in poverty), without any reference to denominational distinctions or the peculiarities of Church Government.

Change of London City Mission Chair

Mark Harding stepped down as a director and as Chair of London City Mission at the meeting on Monday 18th September 2023. Richard Montgomery became the new Chair at the same meeting.

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4. GOVERNANCE

4. GOVERNANCE

Advisors and others acting for The London City Mission during the year:

Solicitors:

Wedlake Bell LLP 71 Queen Victoria Street London EC4V 4AY

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

Investment Managers: Investec Wealth and Investment Limited 30 Gresham Street

London EC2V 7QN

Bankers: Barclays Bank plc 100 Fenchurch Street London EC3M 5JD

Insurance advisors: Arthur J Gallagher Insurance Brokers Limited Spectrum Building 7th Floor, 55 Blythswood Street Glasgow # G2 7AT

Pension advisors: Mercer Limited 1 Tower Place West Tower Place London EC3R 5BU

Punter Southall Defined Contributions Consulting Limited 11 Strand

London WC2N 5HR

Registered auditors: Moore Kingston Smith LLP 9 Appold Street, London EC2A 2AP

Surveyors: Rapleys 66 St James’s St St. James’s London SW1A 1NE

4A. GOVERNANCE OF THE LONDON CITY MISSION

The Board of The London City Mission (LCM) met on nine occasions during 2023, among other things to agree overall strategy and policy; to determine matters of principle; deal with strategic financial and property planning; and review progress towards achieving the annual objectives it has set.

As permitted by the Articles of Association, the Chief Executive Officer, who is also a member of the Board of Directors, is the only paid member of the Board. The Chief Executive Officer is appointed by the Board and, together with his senior management team, manages the day-to-day operations of LCM. Communications with all employees are maintained through regular team meetings, monthly Team Days, staff newsletters, annual appraisals, email and written documentation.

LCM’s Board plans to complete a further review of the Charity Governance Code in Q3 and Q4 of 2024. Whilst recognising that the requirements of the code are not mandatory, it continues to believe they are largely applied by the Mission and has an ongoing action plan to reflect recommended practice from the Charity Commission.

Induction of Board Members

Three new Board members joined London City Mission in September 2023 and a detailed induction process was followed. The three new Board members (Rebekah Brown, Tim Moger and George Stylianides) were set up with dedicated LCM Office 365 accounts which included numerous core documents. They also completed DBS checks and were assigned more experienced Board members as ‘buddies’ to support them in onboarding. A series of in-person meetings were organised to get to know other Board members and senior staff as well as supporters at the annual Thanksgiving Service. In addition, more formal trustee training was offered (where appropriate).

4B. SUBSIDIARY COMPANIES

The London City Mission (LCM) group is made up of a collection of companies which are wholly owned by LCM. These companies enter into transactions with the charity and each other. The Board of The London City Mission has approved these transactions on behalf of the charity.

The London City Mission Trust exists solely to hold properties and securities as nominee on behalf of LCM. It has an issued share capital of 181 £4 shares, 50p partly paid, of which The London City Mission has 170 shares and London City Mission Services Limited has the remaining 11 shares.

London City Mission Services Limited, a fully owned subsidiary of LCM, has no trading activity and solely exists to be one of the two corporate shareholders in the London City Mission Trust.

subsidiary of LCM. At 31 December 2017, an asset purchased from LCM had subsequently been impaired to £nil and, as a result, an intercompany loan from The London City Mission to LCMPS, which had been drawn to pay for the said asset, had been deemed to be unlikely to be repaid, and had also been written down to £nil. In 2021, the activities of LCMPS were transferred to London City Mission Property Holdings Ltd as part of a corporate restructure. LCMPS is in the process of becoming dormant.

London City Mission Property Holdings Ltd (LCMPH), a company limited by shares was established in November 2019 as a subsidiary of The London City Mission. LCMPH acts as a wholly owned trading subsidiary of the charity, to provide segregation of trading, or potential trading activity, from charitable activity as recommended by the Charity Commission. LCMPH commenced trading from the 1st July 2021. The Directors of LCMPH entered into a contract to purchase 27 properties from the parent company (LCM). The wholly owned subsidiary (LCMPH) used an intercompany loan from LCM to purchase these properties with any difference to their holding value being treated as an investment in LCMPH by LCM. These transactions are reflected in the accounts of LCM as investment properties replaced by a subsidiary investment and an inter-company loan. Similarly, LCMPH leased back these properties to the parent company. Finally, the Directors of LCMPH have novated certain existing London City Mission Property Services Ltd contracts to the company. These transactions were in line with the scheme authorised by the Charity Commission dated 30th June 2021.

4C. MANAGEMENT STRUCTURE

The London City Mission’s (LCM) Leadership Team are accountable to the Board of Directors to collectively lead and serve LCM. They have responsibility to plan, propose and implement the strategy of the organisation.

The members of The London City Mission’s Leadership Team are as follows:

London City Mission Property Services Ltd (LCMPS), a company limited by guarantee, was established in November 2015 as a

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4. GOVERNANCE

4D. PAY POLICY FOR SENIOR STAFF

The Board of Directors and the Leadership Team comprise the key management personnel of The London City Mission, in charge of directing and operating LCM on a day-to-day basis. All Trustees, with the exception of the Chief Executive Officer, give their time freely and received no remuneration in the year.

Details of Trustees’ expenses are disclosed in Note 4 to the Accounts, and related party transactions in Note 20.

The salaries and benefits of the senior staff on the Leadership Team (excluding the CEO) are set by the Chief Executive Officer and Director of People & Organisational Development and approved by the HR Subcommittee of the Board, with reference to levels of responsibility and rates of remuneration in charities of similar size and objects. The Chief Executive Officer’s salary and benefits are set by the LCM Directors. Rates of pay are reviewed annually. Details are disclosed in Note 4 to the Accounts.

4E. DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Directors’ annual 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 Directors to prepare financial statements for each financial year. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including its income and expenditure, of the charity for the year. In preparing those financial statements the Directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006.

They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

4F. AUDITORS

A resolution to re-appoint Moore Kingston Smith as auditors to LCM will be proposed to the members.

4G. DIRECTORS’ STATEMENT

Each of the Directors has confirmed that, so far as they are aware, there is no relevant audit information of which the charitable company’s auditors are unaware, and that they have taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

REPORT OF THE DIRECTORS SIGNED ON BEHALF OF THE DIRECTORS

GRAHAM D MILLER, CHIEF EXECUTIVE AND DIRECTOR 10 June 2024

5. INDEPENDENT AUDITORS’ REPORT

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.

OPINION

We have audited the financial statements of The London City Mission (the ‘parent charitable company’) and its subsidiaries (the ’group’) for the year ended 31 December 2023 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement 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).

CONCLUSIONS RELATING TO GOING CONCERN

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and 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.

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

OTHER INFORMATION

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

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the

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

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5. INDEPENDENT AUDITORS’ REPORT

5. INDEPENDENT AUDITORS’ REPORT

determine whether there is 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.

accounting unless the trustees either intend to liquidate the group or 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 nothing to report in this regard.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Opinions on other matters prescribed by the Companies Act 2006

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Matters on which we are required to report by exception

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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: internal control. • the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or • the parent charitable company’s financial statements control. are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit. ~~——~~ 4 y if ee - a | ee|ee[om ¢ #2 Responsibilities of trustees ees e eeeeeee eewe ee|aoaie . ' ss fe * As explained more fully in the trustees’ responsibilities statement, @& & & #@ Ff ee Fe le eee - ofi i 8 a& 8 i 8 iwe he we we4 - ee the trustees (who are also the directors of the charitable ee ed - -oeof om 4 © >es8.% company for the purposes of company law) are responsible for © & @ eoBe bo ee6 ee> oe eeHe Heee a - fal eof 4 eo} oe © & * FP ee Fe FF - soa ‘ 7 eeom i. the preparation of the financial statements and for being satisfied Ceeeee ee| "4 : : - * . 1 woe ow ea that they give a true and fair view, and for such internal control em ee eh . oe - i i ee ee - Oo @-iiaife8wo¢ee as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, iOo eeeR Be ieHeaali i eeweee-Uloo. ee“ofeeee . -oei7 . Fooesa“=Crme|he74eeewoewe 8 a a whether due to fraud or error. ee 2 soa - - ww.tb oF So i a . 2 3 8 5 om - - - woee eea 2 da a - : er ee uw we ' ieb 2 Gt seibe . od 2 “uoe oF ~ fe eeoe Sw & ew f continue as a going concern. Se i In preparing the financial statements, the trustees are responsible i mma vow - # 2 oe HS OD Oe ee eT is * D * Peee& = - we for assessing the group and parent charitable company’s ability a ota © * 8 oo ae wot a - aee a. rd + - * - aii aee a- Ff 4 - eced . i Sc7 - a - 2 Oo to continue as a going concern, disclosing, as applicable, matters en ee - oF ed ee a ee | s. # * * & Lr ee is - a i ee ee aalo. ¢ 7now related to going concern and using the going concern basis of ee eseeBoe ew es~ sos osa Meysoe a. a~ 4 ee - #er¢ @#@ J * 'es@& + @ fF 4 F eeaewoe. fF Fehoes - -_— 3 tf B @ wh wy roe - * ae ee @ i ee ee 2 ee ee a ns . _ 8 a 7 * . - - 7 - i ee ee a i ee ‘oa €o4 ios - wo = i es . + ob ee 7 7 soe oe EF a a a- to es : - i eeeeee | Se aal , ee . - hooey er co 2 Se i a ee 2 . - a ee en ee ee 2 = tf moos ee“lo 46 “Fe. . * ‘ oe reee es 4.aee ee oD bow

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.

Use of our report

This report is made solely to the 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 charitable company’s members those matters which 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 any party other than the charitable company and charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Street London EC2A 2AP

14 June 2024

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6. GROUP STATEMENT OF FINANCIAL ACTIVITIES

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||||||||| |---|---|---|---|---|---|---|---| |Notes|Unrestricted|Designated|Restricted|Endowment|2023|2022| |funds|Funds|funds|funds|Total|Total| |£’000|£’000|£’000|£’000|£’000|£’000| |Voluntary income| |Donations|1,550|-|1,260|-|2,810|2,892| |-|-|-| |Legacies|2,315|2,315|4,699| |Income from investments|2|811|-|17|-|828|671| |Income from charitable activities| |Guaranteed payments and trading receipts at cafés,|14|-|-|-|14|20| |HQ Book room and at Christian Centres| |Income from other trading activities| |Rents|486|-|-|-|486|479| |Other income|1|-|-|-|1|66| |Fees and other charges|16|-|-|-|16|1| |Other income| |Net (loss) / gain on sale of tangible fixed assets|(17)|1,705|-|-|1,688|1,256| |TOTAL INCOME|5,176|1,705|1,277|-|8,158|10,084| |Expenditure on raising funds| |Management of rented properties|475|48|-|-|523|489| |Fundraising & Supporter Partnerships|865|-|-|-|865|739| |Investment management fees|20|-|-|-|20|13| |Total Expenditure on raising funds|1,360|48|-|-|1,408|1,241| |NET INCOME AVAILABLE FOR CHARITABLE OBJECTIVES|3,816|1,657|1,277|-|6,750|8,843| |EXPENDITURE ON CHARITABLE ACTIVITIES| |Mission activities|4,937|571|1,052|-|6,560|5,706| |LCM Pioneers|285|-|151|-|436|386| |Training and church development|526|-|-|-|526|465| |City Vision, City Challenge and Urban Track|229|-|-|-|229|212| |Christian Centres|1,438|96|-|-|1,534|1,445| |Retirement housing and other costs|388|-|4|-|392|401| |Relief to the needy|545|-|3|-|548|452| |Hope Community Homes|111|-|-|-|111|98| |Trading costs at cafés, HQ Book room and|10|-|-|-|10|7| |at Christian Centres| |Christian Centre developments|656|-|-|-|656|220| |TOTAL CHARITABLE EXPENDITURE|9,125|667|1,210|-|11,002|9,392| |TOTAL EXPENDITURE|3|10,485|715|1,210|-|12,410|10,633| |NET INCOME/(EXPENDITURE) BEFORE INVESTMENT|(5,309)|990|67|-|(4,252)|(549)| |GAINS/LOSSES| |Realised net gains on investments|6|388|-|-|-|388|212| |Unrealised gains/(losses) on investments|6|(3,611)|-|41|6|(3,564)|2,382| |NET INCOME/(EXPENDITURE) BEFORE TRANSFERS|(8,532)|990|108|6|(7,428)|2,045| |Transfer between funds|11|7,747|(7,747)|-|-|-|-| |NET INCOME/(EXPENDITURE) AFTER TRANSFERS|(785)|(6,757)|108|6|(7,428)|2,045| |Actuarial (losses)/gains on defined benefit pension|9|-|-|-|-|-|-| |scheme| |NET MOVEMENT IN FUNDS|(785)|(6,757)|108|6|(7,428)|2,045| |RECONCILIATION OF FUNDS| |Total funds brought forward|7,207|60,768|1,514|1,242|70,731|68,686| |FUND BALANCES CARRIED FORWARD|6,422|54,011|1,622|1,248|63,303|70,731|

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7. GROUP & PARENT BALANCE SHEET

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||||||| |---|---|---|---|---|---| |Notes|Group|Group|Charity|Charity| |2023|2022|2023|2022| |FIXED ASSETS|£’000|£’000|£’000|£’000| |Tangible fixed assets|5a|27,008|27,224|23,010|21,273| |Intangible fixed assets|5b|98|141|98|141| |Investments|6|32,188|39,953|28,379|37,834| |59,294|67,318|51,487|59,248| |CURRENT ASSETS| |Stocks|-|3|-|3| |Debtors|7|2,428|4,503|13,658|14,293| |Cash at bank and in hand|2,440|1,598|2,425|1,407| |4,868|6,104|16,083|15,703| |LIABILITIES| |Amounts falling due within one year|8a|(859)|(886)|(351)|(490)| |NET CURRENT ASSETS|4,009|5,218|15,732|15,213| |Amounts falling due in more than one year|8b|-|(1,805)|-|(1,805)| |PENSION LIABILITY|9|-|-|-|-| |NET ASSETS|63,303|70,731|67,219|72,656| |FUNDS| |Designated funds|11|54,011|60,768|54,316|61,103| |General reserve|12|6,422|7,207|10,033|8,796| |-|-|-|-| |Pension deficit| |UNRESTRICTED FUNDS|60,433|67,975|64,349|69,899| |RESTRICTED FUNDS|13|1,622|1,514|1,622|1,514| |ENDOWMENT FUNDS|14|1,248|1,242|1,248|1,243| |TOTAL FUNDS|63,303|70,731|67,219|72,656|

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The charity has taken the exemption under Companies Act 2006 s.408 to omit its profit and loss account from the statutory group accounts. The Total Incoming Resources for the charity during the year ended 31 December 2023 was £13,994k (2022: £10,374k) and Net (Expenditure) Income during the year ended 31 December 2023 was £(5,436)k (2022: £1,551k).

Approved and authorised by the Board on 10th June 2024 and signed on its behalf by:

Richard Godden, On behalf of the Finance Subcommittee

Richard Montgomery, Chair of the Board

The London City Mission, Company number – 04284615

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8. GROUP CASHFLOW STATEMENT

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|||| |---|---|---| |Cash flows from operating activities:|2023|2022| |£’000|£’000| |Net cash used in operating activities|(3,884)|(3,797)| |Cash flows from investing activities:| |Dividends, interest and rents from investments|828|671| |Proceeds from sale of tangible fixed assets|2,675|4,051| |Purchase of tangible fixed assets|(3,514)|(2,376)| |Proceeds from sale of fixed asset investments|13,624|9,839| |Purchase of fixed asset investments|(7,082)|(8,107)| |Net cash provided by investing activities|6,531|4,078| |Cash flows from financing activities:| |Repayment of Loans|(1,805)|(195)| |Net cash provided by financing activities|(1,805)|(195)| |Increase in cash and cash equivalents|842|86|

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NOTES TO CASH FLOW STATEMENT

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|||||| |---|---|---|---|---| |1.|Reconciliation of net income for the year to|2023|2022| |net cash outflow from continuing operating activities|£’000|£’000| |Net income|(7,428)|2,045| |Investment income|(828)|(671)| |Gain on disposal of tangible fixed assets|(1,688)|(1,256)| |Realised (gains)/losses on investments|(388)|(212)| |Unrealised (gains)/losses on investments|3,564|(2,382)| |Depreciation on tangible fixed assets|790|714| |Amortisation of Intangible assets|43|43| |Decrease/(increase) in stocks|3|1| |Decrease/(increase) in debtors|2,075|(2,089)| |(Decrease)/increase in creditors|(27)|10| |Net cash outflow from operating activities|(3,884)|(3,797)| |2.|Analysis of changes in net debt equivalents|1 Jan 2023|Change|31 Dec| |during the year|£’000|in year|2023| |£’000|£’000| |Cash and cash equivalents| |Cash|1,598|842|2,440| |Borrowings| |-| |Debt due after one year|(1,805)|1,805| |Total|(207)|2,647|2,440|

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9. NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The presentational currency used is British pound sterling. Balances are rounded to the nearest £.

The London City Mission 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(s).

Basis of consolidation

The London City Mission is the only member of two subsidiary companies. London City Mission Property Services Ltd limited (Company no. 09881533), a company limited by guarantee, and London City Mission Property Holdings limited (Company no. 12320018), a company limited by shares. Group accounts have therefore been prepared and the assets, liabilities and results of the subsidiaries are consolidated into these financial statements. Summarised details see Note 6.

Going concern

The Directors consider that there are no material uncertainties about the charity’s ability to continue as a going concern for the foreseeable future. Under its financial sustainability plan, LCM is planning operating deficits in the medium term, financed by the sales of investment property. The disposal of investment properties is expected to provide more than £20m to fund the planned operational deficits, currently averaging £4m per annum, and a sustainable level of working capital. Meanwhile, the trustees aim to hold liquid assets equivalent to the general reserve target. Having made enquiries, the Directors believe that the planned programme of property disposals is achievable without recourse to additional borrowing facilities and do not consider there are any material uncertainties about the charity’s ability to continue as a going concern for the foreseeable future. Accordingly, the financial statements continue to be prepared on a going concern basis.

(b) Tangible fixed assets and depreciation

Freehold and long leasehold buildings are capitalised at historical cost or probate value if donated to the charity.

For each freehold property, we assume a cost ratio of 50:50 divided between land and buildings. Freehold land is not depreciated. Freehold buildings are depreciated over their expected useful lives, taken to be 50 years (at 2% per year).

Leasehold property is depreciated over the shorter of the remaining useful life or the remaining period of the lease.

(c) Intangible fixed assets and amortisation

Software is amortised over a useful economic life of 7 years once it has entered into use.

(d) Property Repairs and Improvement costs

Repairs to properties are accounted for under charitable expenditure except where the floor area of a property is extended, or the improvement is considered to be to the fabric of the building and its fixtures and fittings, in which case the cost is capitalised.

(e) Investments

Investments in subsidiaries are held at fair value, less any impairment recognised.

Investments (including investment properties) are stated at market value. Realised and unrealised gains and losses on investments are included in the Statement of Financial Activities. Investment income is credited to income on an accruals basis. The portfolio management fees are included in the Statement of Financial Activities.

Investment property is property deemed to be held for the sole purpose of financial gain to LCM, is held at the Trustees’ best estimate of valuation and is not depreciated, which is permitted under the Charity SORP 2019. The Trustees perform a review of the valuation annually. All changes in value in the year are reported in the Statement of Financial Activities.

(f) 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.

(g) Creditors and provisions

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

(h) Property awaiting sale

Properties are held at book value where they have been given to LCM as gifts, and are awaiting sale, being either on the market, or earmarked for sale but not yet marketed. They are not depreciated since they fall under Current Assets. Where properties that have been held for charitable purposes, or for investment purposes, are not deemed to be awaiting sale, they are kept in Tangible Fixed Assets or Investment Properties, respectively.

(i) Financial instruments

The London City Mission only has financial assets and financial liabilities of a kind that qualify as basic financial instruments (for example cash). Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Motor Vehicles and Fixtures and fittings are depreciated at 25%, and 20%, on a reducing balance basis respectively. IT capitalisation is capitalised at 33.33% on cost and Property development is not capitalised until it comes into use.

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9. NOTES TO THE ACCOUNTS

9. NOTES TO THE ACCOUNTS

(j) Funds

Unrestricted Funds comprise:

Restricted Funds are restricted income funds, which are expendable at the discretion of the Trustees in furtherance of particular aspects of the objects of LCM and assets subject to specific purposes and conditions imposed by the donors.

Endowment Funds are funds held in trust by LCM and only the income arising can be expended.

(k) Donations and legacies

Donations, and income under gift aid, are accounted for when receivable. Legacies are recognised as receivable when there is an entitlement to the funds, it is considered probable that they will be received and can be measured reliably. Donations of investments are accounted for at market value at date of transfer and properties at probate value or valuation.

(l) Rent receivable

Rents receivable are accounted for on an accruals basis.

(m) Value Added Tax

Value Added Tax, which cannot be recovered in respect of most of the costs of the charity, is included in those costs in the Statement of Financial Activities.

(n) Pension costs

The pension scheme is a defined benefit (final salary) funded scheme now closed to new entrants. For defined benefit schemes, the amounts charged in resources expended are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested, i.e. entitlement to benefits has become unconditional. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. Net interest cost is charged to expenditure and is calculated by multiplying the net scheme liability by the discount rate used to determine the defined benefit obligation. Actuarial gains and losses are recognised immediately.

The defined benefit scheme is funded, with the assets of the scheme held separately from those of LCM, in a separate trustee administered fund. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

The defined contribution scheme costs are included as part of staff costs and included in the Statement of Financial Activities.

(o) Resources expended

Direct costs are allocated to the particular activity where the cost

relates directly to that activity when invoiced. Salaries of staff, national insurance and pension contributions paid are allocated on a proportioned basis relating to the time spent.

(p) Leases

Payments made under operating leases are charged to the statement of financial activities on a straight-line basis over the lease term.

(q) Support costs

Support costs include property costs, HR, finance, IT, fundraising and other administrative costs associated with supporting the charitable activities. They also incorporate governance costs associated with the management of the Mission’s assets and with constitutional and statutory requirements including advisory and audit expenditure. Support costs have been allocated to the cost of charitable activities on a headcount basis. This allocation is set out in Note 19.

(r) Significant estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment property

In the absence of current prices in an active market for similar properties, the directors consider information from a variety of sources, including:

a) current prices in an active market for properties of a different nature, condition or location, adjusted to reflect those differences.

b) recent prices of similar properties on less active markets, with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices; and

c) discounted cash flow projections based on reliable estimates of future cash flows, supported by the terms of any existing lease and other contracts and (when possible) by external evidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in the amount and timing of the cash flows.

Further details, including the carrying values and key assumptions used for the fair value measurement, are given in note 6 to the financial statements.

2. INVESTMENT INCOME

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|||| |---|---|---| |2023|2022| |£’000|£’000| |Income from listed investments|211|91| |Income from other investments|-|-| |Income from deposits|8|4| |Income from investment properties|609|576| |828|671|

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Of the investment income recognised, £16,684 was restricted (2022 - £10,453).

3. ANALYSIS OF RESOURCES EXPENDED

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|||||| |---|---|---|---|---| |Staff|Total| |Costs|Other|Dep’n|2023| |Group|£’000|£’000|£’000|£’000| |Expenditure on raising funds|772|621|15|1,408| |Charitable expenditure|6,092|4,135|775|11,002| |6,864|4,756|790|12,410| |2023| |Included in both group and charity above:|£’000| |Audit fees net of VAT|54| |Prior year under accrual of audit fees|25| |Support costs (Note 19)|5,411|

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Analysis of Resources Expended-2022 for comparison

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|||||| |---|---|---|---|---| |Staff|Total| |Costs|Other|Dep’n|2022| |Group|£’000|£’000|£’000|£’000| |Expenditure on raising funds|650|576|15|1,241| |Charitable expenditure|5,705|2,988|699|9,392| |6,355|3,564|714|10,633| |2022| |Included in both group and charity above:|£’000| |Audit fees net of VAT|36| |Prior year under accrual of audit fees|19| |Support costs (Note 19)|4,654|

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Of resources expended, £1,276,585 related to restricted funds (2022 - £1,152,876).

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9. NOTES TO THE ACCOUNTS

4. STAFF COSTS

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|||| |---|---|---| |2023|2022| |Group|£’000|£’000| |Salaries|5,357|4,954| |Social Security|469|462| |Settlement Costs|20|19| |Pension and Life Insurance|1,018|920| |6,864|6,355|

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The only member of the Board who is remunerated is Graham Miller, the Chief Executive, and his total emoluments for 2023 were £60,578 (2022 £59,082). Pension contributions of £9,019 (2022 £8,655) were also paid on his behalf. He also receives rent-free accommodation in his role as Chief Executive. Travel expenses reimbursed to one (2022: one) board member amounted to £783 (2022 £146).

During 2023, LCM reached settlement agreements with two employees who subsequently left the organisation. There were three settlements with employees in 2022.

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|||| |---|---|---| |2023|2022| |The number of employees analysed by function was:| |Field staff – evangelists|113|107| |Other ministry staff|9|9| |Maintenance staff|13|13| |Support and administration staff|49|51| |Employed staff|184|178|

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The number of employees receiving emoluments for the year greater than £60,000 falling within the following band were:

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|||| |---|---|---| |2023|2022| |£60,000 to £69,999|2|2| |£70,000 to £79,999|2|2| |£80,000 to £89,999|1|-|

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Emoluments for the Leadership Team are shown below. The composition of the Leadership Team is set out in the Directors’ Report on Page 13. The figures below are the total cost to the LCM, including gross salaries, benefits in kind, employers NICs and employer’s pension contributions

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|||| |---|---|---| |2023|2022| |£’000|£’000| |Key management emoluments|691|668|

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5A. TANGIBLE FIXED ASSETS

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||||||||| |---|---|---|---|---|---|---|---| |Long| |Freehold|Leasehold|Property| |Land &|Land &|Fixtures &|Motor|IT|Work in| |Buildings|Buildings|Fittings|Vehicles|Capitalisation|Progress|Total| |Group|£’000|£’000|£’000|£’000|£’000|£’000|£’000| |Cost or valuation| |at 1 January 2023|22,318|2,647|3,077|256|288|2,529|31,115| |Transfers to investment property|(419)|-|-|-|-|(1,570)|(1,989)| |Additions|2,612|353|500|-|49|-|3,514| |Disposals|(393)|(420)|-|-|-|(263)|(1,076)| |at 31 December 2023|24,118|2,580|3,577|256|337|696|31,564| |Depreciation| |at 1 January 2023|(1,532)|(293)|(1,629)|(256)|(181)|-|(3,891)| |Dep'n eliminated on disposal|53|34|-|-|-|-|87| |Dep'n eliminated on transfer to investment|38|-|-|-|-|-|38| |property| |Charge for period|(242)|(31)|(405)|-|(112)|-|(790)| |at 31 December 2023|(1,683)|(290)|(2,034)|(256)|(293)|-|(4,556)| |Net book values| |at 31 December 2023|22,435|2,290|1,543|-|44|696|27,008| |at 31 December 2022|20,786|2,354|1,448|-|107|2,529|27,224|

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||||||||| |---|---|---|---|---|---|---|---| |Long| |Freehold|Leasehold|Property| |Land &|Land &|Fixtures &|Motor|IT|Develop-| |Buildings|Buildings|Fittings|Vehicles|Capitalisation|ment|Total| |£’000|£’000|£’000|£’000|£’000|£’000|£’000| |Headquarters, Nasmith Court, Retirement, Holiday|5,539|465|489|-|44|696|7,233| |Homes & other properties & vehicles| |Missionary and Staff Housing|14,614|1,329|563|-|-|-|16,506| |-|-|-|-|-|-|-| |New Missionary Housing| |Hope Community Homes|174|-|-|-|-|-|174| |Tenanted Properties|548|403|135|-|-|-|1,086| |Christian Centres|1,560|93|356|-|-|-|2,009| |22,435|2,290|1,543|-|44|696|27,008|

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9. NOTES TO THE ACCOUNTS

9. NOTES TO THE ACCOUNTS

5B. INTANGIBLE FIXED ASSETS

5B. INTANGIBLE FIXED ASSETS
Charity
Cost or valuation
at 1 January 2023
Transfer from LCMPH
Transfer to investment property
Additions
Disposals
at 31 December 2023
Depreciation
at 1 January 2023
Dep'n eliminated on disposal
Dep'n eliminated on transfer
Charge for period
at 31 December 2023		 Freehold
Land &
Buildings
£’000
18,543
-
(419)
2,631
(393)
20,362
(1,179)
36
38
(204)
(1,309)		 Long
Leasehold
Land &
Buildings
£’000
2,647
-
-
353
(420)
2,580
(293)
34
-
(31)
(290)		 Fixtures &
Fittings
£’000
3,077
-
-
500
-
3,577
(1,629)
-
-
(405)
(2,034)		 Motor
Vehicles
£’000
256
-
-
-
-
256
(256)
-
-
-
(256)		 IT
Capitalisation
£’000
288
-
-
49
-
337
(181)
-
-
(112)
(293)		 Property
Develop-
ment
£’000
-
240
(160)
-
-
80
-
-
-
-
-		 Total
£’000
24,811
240
(579)
3,533
(813)
27,192
(3,538)
70
38
(752)
(4,182)		 5B. INTANGIBLE FIXED ASSETS
Group and charity
Cost or valuation
at 1 January 2023
Additions
Disposals
at 31 December 2023
Amortisation
at 1 January 2023
Amortisation eliminated on disposal
Charge for period
at 31 December 2023
Net book values
at 31 December 2023
at 31 December 2022		 Software
£’000
304
-
-
304
(163)
-
(43)
(206)
98
141
Net book values
at 31 December 2023		 19,053 2,290 1,543 - 44 80 23,010 6. FIXED ASSET INVESTMENTS
at 31 December 2022 17,364 2,353 1,448 - 108 - 21,273
Headquarters, Nasmith Court, Retirement, Holiday
Homes & other properties & vehicles
Missionary and Staff Housing
Tenanted Properties
Christian Centres		 Freehold
Land &
Buildings
£’000
3,738
14,415
548
352
19,053		 Long
Leasehold
Land &
Buildings
£’000
465
1,329
403
93
2,290		 Fixtures &
Fittings
£’000
491
561
135
356
1,543		 Motor
Vehicles
£’000
-
-
-
-
-		 IT
Capitalisation
£’000
44
-
-
-
44		 Property
Develop-
ment
£’000
80
-
-
-
80		 Total
£’000
4,818
16,305
1,086
801
23,010		 Group
Valuation at 1 January 2023
Additions
Disposals
Transfers at book value
Net realised (losses)/gains
Net unrealised (losses)/gains
Valuation at 31 December 2023		 Investec
£’000
4,632
3,240
(1,954)
-
85
248
6,251		 Cash
and COIF
£’000
2,020
3,251
(4,866)
-
10
-
415		 Property
£’000
33,301
591
(6,804)
1,953
293
(3,812)
25,522		 Total
£’000
39,953
7,082
(13,624)
1,953
388
(3,564)
32,188
Group
Valuation at 1 January 2023
Additions
Disposals
Transfers at book value
Net realised (losses)/gains
Net unrealised (losses)/gains
Valuation at 31 December 2023
Cost at 31 December 2023		 Investec
£’000
4,632
3,240
(1,954)
-
85
248
6,251
5,935		 Cash
and COIF
£’000
2,020
3,251
(4,866)
-
10
-
415
406		 Property
£’000
33,301
591
(6,804)
1,953
293
(3,812)
25,522
10,425		 Total
£’000
39,953
7,082
(13,624)
1,953
388
(3,564)
32,188
16,766
Charity
Valuation at 1 January 2023
Additions
Disposals
Transfers at book value
Net realised (losses)/gains
Net unrealised (losses)/gains
Valuation at 31 December 2023
Cost at 31 December 2023		 Investec
£’000
4,632
3,240
(1,954)
-
85
248
6,251
5,935		 Cash and
COIF
£’000
2,020
3,251
(4,866)
-
10
-
415
406		 Property
£’000
14,282
591
(2,351)
542
(74)
(267)
12,723
9,287		 Investment
in LCMPH
£’000
16,900
-
-
-
-
(7,910)
8,990
16,900		 Total
£’000
37,834
7,082
(9,171)
542
21
(7,929)
28,379
32,528

LCM holds a wide range of investments managed by Investec and COIF. At year end 46% (2022: 46%) are overseas investments.

Unrealised gains on property represent gains on revaluations of investment properties to market value on the basis of Trustees estimates. In the case of properties that have been transferred from tangible fixed assets this year, this is a revaluation to market value from depreciated historic cost.

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9. NOTES TO THE ACCOUNTS

London City Mission Property Services Ltd

London City Mission Property Services Ltd is a private company limited by guarantee without share capital (Company No. 09881533) which is controlled by LCM. This company formally wound up its activities at the 31 December 2023 and is in the process of being formally struck off.

Turnover
Release of intercompany debt
Expenditure
Surplus/(Deficit) for the year		 2023
£’000
-
4
-
4		 2022
£’000
-
-
26
26
Total Assets - 306
Total Liabilities - (310)
Net Funds - (4)

London City Mission Property Holdings Ltd

London City Mission Property Holdings Ltd is a private limited company (Company No. 12320018) which is controlled by LCM.

During the year to 31 December 2023 a number of properties held by London City Mission Properties Limited have been reclassified as trading stock where they were previously classified as investment properties, with sales of these properties being classified as turnover. As a result, the 2022 financial statements for London City Mission Property Holdings Limited have been restated to also reflect this treatment.

Turnover
Cost of sales
Other operating income
Administrative expenses
Profit for the year		 2023
£’000
4,450
(1,783)
1
(1,108)
1,560		 2022
(As Restated)
£’000
6,663
(2,668)
61
(774)
3,282		 2022
(As Restated)
£’000
6,663
(2,668)
61
(774)
3,282
Total Assets 11,198 13,970
Total Liabilities (11,448) (14,220)
Net Funds (250) (250)

Each year, any taxable profit of London City Mission Property Holdings is distributed to London City Mission, meaning that the net funds of the subsidiary remain consistent.

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7. DEBTORS

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|||||| |---|---|---|---|---| |2023|2022|2023|2022| |Group|Group|Charity|Charity| |£’000|£’000|£’000|£’000| |Cash due from legacies|1,979|4,058|1,979|4,058| |Staff loans and season tickets|15|12|15|12| |Gift Aid tax recoverable|47|53|47|53| |Insurance premiums prepaid|57|54|57|54| |Ministry prepayment|4|4|4|4| |Other prepayments|160|73|160|73| |-|-| |Intercompany balances|11,235|9,829| |Other debtors|166|249|161|210| |2,428|4,503|13,658|14,293|

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Of the intercompany balance, £11,705k relates to an intercompany loan from LCM to LCMPH (2022 - £12,256k) with the remainder consisting of balances from the day to day activities of group entities.

8A CREDITORS

Amounts falling due within one year:

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|||||| |---|---|---|---|---| |2023|2022|2023|2022| |Group|Group|Charity|Charity| |£’000|£’000|£’000|£’000| |Accruals|310|343|278|82| |Tax and social security|-|116|-|116| |Trade creditors|-|277|-|142| |Rent deposits & deferred rent receivable|67|72|67|72| |Deferred Income|176|-|-|-| |Life assurance scheme|-|4|-|4| |Other creditors|306|74|6|74| |859|886|351|490|

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8B CREDITORS DUE IN MORE THAN ONE YEAR

9. NOTES TO THE ACCOUNTS

– 9. PENSION COMMITMENTS GROUP AND CHARITY

LCM operates a defined benefit pension scheme for all qualifying employees who elected to join the scheme but was closed to new entrants in 2006. The assets of the scheme are held separately from the assets of LCM. Contributions and costs of the scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees’ working lives with LCM.

A formal triennial valuation of the scheme was completed as at 31 May 2020 by the scheme actuary and the valuation method used was the Projected Unit Method. The May 2020 valuation showed that the market value of the scheme’s assets was £5,392k (2017 - £4,498k) excluding insured pensioners’ assets and that the actuarial value of those total assets represented 67% (2017 - 63%) of the benefits that had accrued to members, after allowing for expected future increases in earnings. The deficit on the scheme funding basis was £2,696k (2017 - £2,655k). The latest triennial valuation (31 May 2023) is ongoing at the date of signing the accounts.

Following an improvement in financial market conditions resulting in the scheme being in surplus on a technical provisions basis, a revised recovery plan was agreed on 30 August 2023, under which no further employer contributions are due. A contribution of £438k that was due by 31 August 2022 under the previous recovery plan had not been paid at the end of 2023.

Following a formal quotation process a bulk annuity contract was signed with Aviva in May 2024. To fund the purchase of this contract the scheme assets have been liquidated. In addition, LCM made a contribution of £530k to fund the initial premium, which also covered the £438k outstanding under the previous recovery plan. It is anticipated that a further contribution of approximately £0.1m will be needed to cover the final premium once a data verification process has been completed. It is estimated that there will be a further £0.4m required to cover the costs of the scheme buy-out and wind up, which will be paid directly by LCM, the majority of which are anticipated to be paid in 2024.

The actuary has carried out a further full valuation of the scheme as at 31 December 2023 to produce the information required under FRS 102 – Section 28 Disclosure Report.

The assets in the scheme were as follows:

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||||||| |---|---|---|---|---|---| |2023|2022|2021|2020|2019| |£’000|£’000|£’000|£’000|£’000| |Equities|-|-|850|686|731| |Bonds and gilts|3,322|3,739|4,207|3,931|3,517| |Diversified growth funds|-|-|741|641|681| |Cash|62|76|100|142|287| |Insured pensioners|4,171|4,106|5,741|6,888|6,676| |Total market value of assets|7,555|7,921|11,639|12,288|11,892| |Present value of scheme liabilities|(7,395)|(7,478)|(11,125)|(12,309)|(12,154)| |Effect of asset ceiling|(160)|(443)|(514)|-|-| |Deficit at 31 December|-|-|-|(21)|(262)|

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Amounts falling due in more than one year:

Analysis of the amounts charged to resources expended would be:

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|||||| |---|---|---|---|---| |2023|2022|2023|2021| |Group|Group|Charity|Charity| |£’000|£’000|£’000|£’000| |Bank loan|-|1,805|-|1,805| |-|-| |1,805|1,805|

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The bank loan was agreed in 2020 for £2m of which £1m was drawn down in 2020 and the remaining £1m drawn down in 2021. The bank loan was repaid in full in 2023. The charges over the freehold land and buildings that the loan was secured against are still held by the bank. These can be cancelled at any time, but allow LCM to draw down the loan again should it be required.

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|||| |---|---|---| |2023|2022| |£’000|£’000| |-|-| |Expenses| |Analysis of the amount credited to pension finance income would be:| |Interest on pension scheme liabilities|(362)|(196)| |Expected return on pension scheme assets|384|205| |Losses on settlements|(22)|(9)| |-|-|

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Analysis of the amount credited to pension finance income would be:

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9. NOTES TO THE ACCOUNTS

Analysis of actuarial loss:

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|||| |---|---|---| |Difference between actual and assumed return on asset|(255)|(3,489)| |Experience (loss) on obligations|(46)|(590)| |Change of basis gain/(loss) on obligations|(5)|3,999| |Changes in asset ceiling|306|80| |-|-| |Actuarial gain/(loss) on obligations| |2023|2022| |Movement in deficit during the year:|£’000|£’000| |-|-| |Deficit at 1 January| |Expenses| |Contributions|-|-| |-|-| |Pension finance income| |-|-| |Actuarial gain/(loss)| |-|-| |Deficit at 31 December|

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History of experience gains and losses

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||||||| |---|---|---|---|---|---| |2023|2022|2021|2020|2019| |£’000|£’000|£’000|£’000|£’000| |Difference between the expected and actual return on scheme assets| |amount|(255)|(3,489)|(767)|876|832| |percentage of scheme assets|(3.4%)|(44.0%)|(6.6%)|7.1%|7.0%| |Experience gain/(loss) on obligations| |amount|-|(590)|(142)|93|39| |percentage of scheme liabilities|(0.0%)|(7.9%)|(1.3%)|0.8%|0.3%| |Total actuarial gain/(loss)| |amount|-|-|(316)|(99)|(430)| |percentage of scheme liabilities|(0.0%)|(0.0%)|(2.8%)|(0.8%)|(3.5%)|

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Changes in the present value of the obligation and in the fair values of assets

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|||| |---|---|---| |31 Dec 2023|31 Dec 2022| |£’000|£’000| |Present value of obligation at beginning of year|7,478|11,125| |Interest cost|361|196| |Benefits paid|(495)|(435)| |-|-| |Charges paid| |Actuarial (gain)/loss|51|(3,408)| |-|-| |Liabilities extinguished on settlements| |Present value of obligation at end of year|7,395|7,478| |31 Dec 2023|31 Dec 2022| |£’000|£’000| |Fair value of scheme assets at beginning of year|7,921|11,639| |Expected return on scheme assets|384|206| |Contributions|-|-| |Benefits paid|(495)|(435)| |Actuarial gain/(loss) on scheme assets|(255)|(3,489)| |Assets distributed on settlements|-|-| |Fair value of scheme assets at end of year|7,555|7,921|

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9. NOTES TO THE ACCOUNTS

11. DESIGNATED FUNDS

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||||||||| |---|---|---|---|---|---|---|---| |Balance|Balance| |Gains/|Net| |1 Jan 2023|Income|Expenses|losses|transfers|31 Dec 2023| |Group|£’000|£’000|£’000|£’000|£’000|£’000| |Headquarters, retirement, other properties and vehicles|8,380|-|(249)|553|(4,599)|4,085| |Missionary and staff housing|14,703|-|(322)|619|1,133|16,133| |Housing for the Marginalised|176|-|-|-|-|176| |Tenanted properties|1,113|-|(48)|-|22|1,087| |Christian Centres|1,896|-|(96)|533|(1,803)|530| |Designated Assets|(Fixed Assets less Debt)|26,268|-|(715)|1,705|(5,247)|22,011| |-|-|-| |Ministry sustainability|33,000|(2,500)|30,500| |-|-|-|-| |Pension deficit|1,500|1,500| |60,768|-|(715)|1,705|(7,747)|54,011|

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Transfers of designated assets represent the reallocation of properties, at book value, between funds. The transfer out of the Ministry sustainability fund is released to the general fund in line with the Long-Term Financial Sustainability objective.

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||||||||| |---|---|---|---|---|---|---|---| |Balance|Balance| |Gains/|Net| |1 Jan 2023|Income|Expenses|losses|transfers|31 Dec 2023| |Charity|£’000|£’000|£’000|£’000|£’000|£’000| |Headquarters, retirement, other properties and vehicles|8,715|-|(276)|553|(4,599)|4,393| |Missionary and staff housing|14,703|-|(325)|619|1,133|16,130| |Housing for the Marginalised|176|-|-|-|-|176| |Tenanted properties|1,113|-|(48)|-|22|1,087| |Christian Centres|1,896|-|(96)|533|(1,803)|530| |Designated Assets|(Fixed Assets less Debt)|26,603|-|(745)|1,705|(5,247)|22,316| |-|-|-| |Ministry sustainability|33,000|(2,500)|30,500| |-|-|-|-| |Pension deficit|1,500|1,500| |61,103|-|(745)|1,705|(7,747)|54,316| |Balance|Balance| |Gains/|Net| |1 Jan 2022|Income|Expenses|losses|transfers|31 Dec 2022| |Group|£’000|£’000|£’000|£’000|£’000|£’000| |Headquarters, retirement, other properties and vehicles|8,429|-|(294)|137|108|8,380| |Missionary and staff housing|18,147|-|(241)|1,476|(4,679)|14,703| |Housing for the Marginalised|1,378|-|(3)|(192)|(1,007)|176| |Tenanted properties|1,119|-|(51)|-|45|1,113| |Christian Centres|1,568|-|(124)|-|452|1,896| |Designated Assets|(Fixed Assets less Debt)|30,641|-|(713)|1,421|(5,081)|26,268| |-|-|-| |Ministry sustainability|24,000|9,000|33,000| |-|-|-| |Pension deficit|2,500|(1,000)|1,500| |57,141|-|(713)|1,421|2,919|60,768|

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Transfers represent the reallocation of properties, at book value, between funds.

10. TAXATION

As a registered charity, LCM is not liable to taxation on its income from charitable activities. Income tax is recovered on gifts donated by supporters under the Gift Aid Scheme.

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9. NOTES TO THE ACCOUNTS

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||||||||| |---|---|---|---|---|---|---|---| |Balance|Balance| |Gains/|Net| |1 Jan 2022|Income|Expenses|losses|transfers|31 Dec 2022| |Charity|£’000|£’000|£’000|£’000|£’000|£’000| |Headquarters, retirement, other properties and vehicles|8,765|-|(321)|136|135|8,715| |Missionary and staff housing|18,147|-|(245)|1,476|(4,675)|14,703| |Housing for the Marginalised|1,378|-|(3)|(192)|(1,007)|176| |Tenanted properties|1,119|-|(52)|-|46|1,113| |Christian Centres|1,568|-|(124)|-|452|1,896| |Designated Assets|(Fixed Assets less Debt)|30,977|-|(745)|1,420|(5,049)|26,603| |-|-|-| |Ministry sustainability|24,000|9,000|33,000| |-|-|-| |Pension deficit|2,500|(1,000)|1,500| |57,477|-|(745)|1,420|2,951|61,103|

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Headquarters, Retirement, Holiday and Other Properties Used for Designated Purposes

This fund represents the carrying value of properties and other tangible fixed assets which are used for charitable purposes, including LCM’s largest asset Nasmith House, and is not available to spend on the general running of LCM. Nasmith Court flats no longer remain within this fund as they are now held as investment properties.

Missionaries’ and Staff Housing

This fund represents the value of residential properties used to house LCM staff. Property which is not currently needed to house staff and is being rented out to partner organisations with similar aims or to private tenants is included in the Tenanted Properties Fund.

Housing for the Marginalised

This fund includes the cost of six properties in Brixton which are used to provide housing and support to the vulnerably housed under the banner of Hope Community Homes and a single property in King’s Cross, known as Banquet House.

Tenanted Properties

This fund includes houses and Christian Centres not needed at the present time for housing or ministry needs and are being rented out until such time that they can be used directly by LCM. Rented out properties that are considered to be held solely for the purpose of financial gain are held as Investment Properties.

Christian Centres

This fund represents the value of the Centres used in the activities of LCM as well as the residential accommodation on the site and other tangible fixed assets. Christian Centres currently not being used by LCM for ministry purposes and which are rented out are generally classified as investment properties because they are held solely for financial gain whilst one is classified as a Tenanted Property.

Ministry Sustainability Fund

The ministry sustainability fund was created at the end of 2020 to fund net expenditure before investments which makes up most of the projected annual cash shortfall, and in doing so, keeps LCM’s ministry sustainable at its target size. In line with the Long-term Financial Sustainability Objective, the fund is expected to steadily reduce over the next 10 years. As this fund inevitably reduces, the planned needs of LCM will be met by steadily increasing donation income. If donation income does not increase over the coming years, the ambition for LCM’s gospel ministry will inevitably need to reduce.

It is expected that the Ministry Sustainability Fund will be adjusted each year in increments of £0.5m. £2.5m was drawn from the fund in 2023 to cover the deficit in the general fund.

Pension deficit

Having reviewed the triennial actuarial valuation of the closed pension scheme and the FRS 102 – Section 28 Disclosure Report for 31 December 2023, the LCM board have maintained the designated £1.5m (£1.5m in 2022) to support the transfer of the liabilities to an insurance company closure of the scheme when market conditions allow.

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9. NOTES TO THE ACCOUNTS

9. NOTES TO THE ACCOUNTS

12. GENERAL FUNDS

Group Balance
1 Jan 2023
£’000		 Net
movement
£’000		 Balance
31 Dec 2023
£’000
General reserve 7,207 (785) 6,422
Charity Balance
1 Jan 2023
£’000		 Net
movement
£’000		 Balance
31 Dec 2023
£’000
General reserve 8,796 1,237 10,033

Relief Fund

From the early days of LCM, the desperate need of the people amongst whom the missionaries worked became apparent. Supporters of LCM specifically sent donations to help the needy that they read or heard about from missionaries’ reports and a relief fund was established. The Fund now is represented by the Webber Street Centre.

Restricted Christian Centre Fund

This fund is made up of donations kindly given, specifically as a contribution toward running the Christian Centres owned by LCM, offset against direct costs.

Restricted Ministry Fund

This fund is made up of specific donations generously given to support individual LCM missionaries or ministries. Donations received are spent against the direct cost of supporting the missionary or ministry in question.

13. RESTRICTED FUNDS

14. ENDOWMENT FUNDS

13. RESTRICTED FUNDS
Group and charity
LCM Pioneers
Retired fund - Property
Holiday homes fund
Relief fund - Property
Relief fund - General
Restricted Christian Centre fund
Restricted ministry fund		 Balance
1 Jan 2023
£’000
-
348
776
273
32
4
81
1,514		 Income
£’000
151
-
17
-
519
6
584
1,277		 Gains on
investments
£’000
-
-
41
-
-
-
-
41		 Expenses
£’000
(151)
(4)
-
(3)
(435)
(6)
(611)
(1,210)		 Transfers
£’000
-
-
-
-
-
-
-
-		 Balance
31 Dec 2023
£’000
-
344
834
270
116
4
54
1,622
Group and charity
LCM Pioneers
Retired fund - Property
Holiday homes fund
Relief fund - Property
Relief fund - General
Restricted Christian Centre fund
Restricted ministry fund		 Balance
1 Jan 2022
£’000
-
351
820
276
76
16
173
1,712		 Income
£’000
169
-
10
-
357
5
468
1,009		 Gains on
investments
£’000
-
-
(54)
-
-
-
-
(54)		 Expenses
£’000
(169)
(3)
-
(3)
(401)
(17)
(560)
(1,153)		 Transfers
£’000
-
-
-
-
-
-
-
-		 Balance
31 Dec 2022
£’000
-
348
776
273
32
4
81
1,514

LCM Pioneers

Donations received specifically as a contribution towards the employment and training of the LCM Pioneers are treated as restricted and are offset against such costs.

Retired Fund (Retired Missionaries, Widows and Orphans fund)

Set up as a separate fund in 1846 to help missionaries who could no longer work, the fund today enables allowances to be paid to retired staff who retired before the establishment of LCM’s pension scheme in 1993. This fund also covers the running cost of properties used to house retired staff. The value of this fund is represented by the book value of the two properties contained within this fund.

Holiday Homes Fund

The first holiday home in Ventnor, Isle of Wight, was donated to LCM in 1869 and the fund’s purpose was to ensure missionaries and their families could enjoy a break from the pressure of urban mission work. The Board decided in 2012 that the properties used for holiday homes should be sold and the one property belonging to the Fund was sold in 2013, with the proceeds transferred to a new Restricted Fund to set against the Pension Deficit. The balance of the fund is represented by investments.

Group and charity Balance
1 Jan 2023
£’000		 Net
movement
£’000		 Balance
31 Dec 2023
£’000
Perpetual trusts 1,242 6 1,248

Perpetual trusts

These consist of a number of separate funds established during the history of LCM to provide an income towards the on-going costs of particular aspects of LCM’s work. The donors have insisted that the capital cannot be spent. The income generated has been used against the salary costs of the designated ministries. The net movement solely relates to the movement in the value of the investments.

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at the end of year are represented by:

Group
Tangible fixed assets
Intangible fixed assets
Investments
Current assets
Current liabilities
Long-term debt
Total net assets		 Unrestricted
funds
£’000
4,377
98
-
2,806
(859)
-
6,422		 Designated
funds
£’000
22,011
-
29,938
2,062
-
-
54,011		 Restricted
funds
£’000
620
-
1,002
-
-
-
1,622		 Endowment
funds
£’000
-
-
1,248
-
-
-
1,248		 2023
£’000
27,008
98
32,188
4,868
(859)
-
63,303		 2022
£’000
27,224
141
39,953
6,104
(886)
(1,805)
70,731
Charity
Tangible fixed assets
Intangible fixed assets
Investments
Current assets
Current liabilities
Long-term debt
Total net assets		 Unrestricted
funds
£’000
-
98
375
9,911
(351)
-
10,033		 Unrestricted
Designated
funds
£’000
-
22,390
-
375
25,754
9,911
6,172
-
-
10,033
54,316		 Designated
Restricted
funds
£’000
620
-
1,002
-
-
-
1,622		 Restricted
Endowment
funds
£’000
-
-
1,002
1,248
-
-
-
1,622
1,248		 Endowment
2023
£’000
23,010
98
1,248
28,379
16,083
(351)
-
1,248
67,219		 2022
£’000
23,010
21,273
141
28,379
37,834
16,083
15,703
(490)
(1,805)
67,219
72,656

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16. CAPITAL AND OTHER COMMITMENTS

There are no capital commitments as at 31 December 2023.

– 17. POST BALANCE SHEET EVENTS INVESTMENT PROPERTY

As at 31 December 2023, LCM was in discussions with a number of third parties to purchase or enter into development agreements for some of LCM’s investment properties. Any material changes from these negotiations were reflected by the Trustees when re-valuing properties.

– 18. OPERATING LEASE COMMITMENTS GROUP AND CHARITY

Total commitments under non-cancellable operating leases for photocopiers, and office equipment computers which expire:

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|||| |---|---|---| |2023|2022| |£’000|£’000| |Within one year|33|20| |Between two and five years|18|20| |-|-| |In more than five years| |51|40|

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19. SUPPORT COSTS

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|||||| |---|---|---|---|---| |Pension| |HR, IT, and|and life|Total| |HQ staff|premises|insurance|2023| |Group and charity|£’000|£’000|£’000|£’000| |Management of rented properties|149|96|4|249| |Fundraising and supporter relations|246|40|17|303| |Mission activities|1,307|1,197|141|2,645| |Christian Centres|138|124|15|277| |Retirement housing|122|78|3|203| |City Vision and City Challenge|202|27|-|229| |Relief to the needy|226|180|25|431| |Development of Christian Centres|38|-|-|38| |LCM Pioneers|312|109|15|436| |Training and church development|366|109|15|490| |Hope Community Homes|73|33|4|110| |Total|3,179|1,993|239|5,411|

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|||||| |---|---|---|---|---| |Pension| |HR, IT, and|and life|Total| |HQ staff|premises|insurance|2022| |Group and charity|£’000|£’000|£’000|£’000| |Management of rented properties|140|75|3|218| |Fundraising and supporter relations|227|41|13|281| |Mission activities|1,159|951|102|2,212| |Christian Centres|122|99|11|232| |Retirement housing|114|61|3|178| |City Vision and City Challenge|192|20|-|212| |Relief to the needy|201|144|18|363| |Development of Christian Centres|38|-|-|38| |LCM Pioneers|287|88|11|386| |Training and church development|338|87|11|436| |Hope Community Homes|68|27|3|98| |Total|2,886|1,593|175|4,654|

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Allocable costs - 2022

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||| |---|---| |£’000| |Head office staff|2,886| |IT, HR, office supplies|446| |Departmental costs|289| |Insurance|126| |Premises|732| |Pension and life insurance|175| |4,654|

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20. RELATED PARTY TRANSACTIONS

There were no related party transactions in the year in respect of Board members and members of the Leadership Team.

21. DONATIONS FROM TRUSTEES

Fourteen (2022: eleven) trustees and connected persons made donations in the year totalling £89,760 (2022: £67,039).

Allocable costs

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||| |---|---| |£’000| |Head office staff|3,179| |IT, HR, office supplies|402| |Departmental costs|665| |Insurance|151| |Premises|775| |Pension and life insurance|239| |5,411|

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To ee Ro RM paberat The London City Mission is a company limited by guarantee. eg. Sy” ta SE Soa : . “3 a = a Registered in England and Wales No. 4284615. Registered Charity No. 247186. Registered office as above.

LONDON CITY MISSION, 175 TOWER BRIDGE ROAD, LONDON SE1 2AH

LCM.ORG.UK

ENQUIRIES@LCM.ORG.UK

020 7407 7585 ~~-—e——o SS~~