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2023-03-31-accounts

BETTER HEALTH PRODUCTS LIMITED

FINANCIAL STATEMENTS

31 MARCH 2023

Company Registration Number 01049465 Registered Charity Number 264031

EDMUND CARR LLP

Chartered Accountants & Registered Auditors 146 New London Road Chelmsford Essex CM2 0AW

BETTER HEALTH PRODUCTS LIMITED

FOR THE YEAR ENDED 31 MARCH 2023

CONTENTS

Charity information 1
The directors' report 2
Independent auditors' report to the members 5
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11

BETTER HEALTH PRODUCTS LIMITED

FOR THE YEAR ENDED 31 MARCH 2023

CHARITY INFORMATION

Directors R B McNeill
A Mathews
L Dolby, RN, RMN, Dip HE Mental Health
D E Mannifield (appointed 1 January 2023)
Auditors Edmund Carr LLP
146 New London Road
Chelmsford
Essex
CM2 0AW
Bankers National Westminster Bank plc
PO Box 8030
20 Amhurst Road
London
E8 1JJ
Company Number 01049465
Charity Number 264031
Registered Office 1A Darnley Road
Hackney
London
E9 6QH
Place of Business 13 Stean Street
London
E8 4ED

1

BETTER HEALTH PRODUCTS LIMITED

THE DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and accounts for the year ended 31st March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

CONSTITUTION

The charity is constituted as a company limited by guarantee, and is therefore governed by a memorandum and articles of association.

DIRECTORS AND TRUSTEES

The directors of the company are as listed on page 1.

The Board has the power to appoint additional directors, as it considers fit.

ORGANISATION AND OBJECTIVES

Better Health Products Limited is run as a social enterprise and provides training placements in one of its three main businesses to individuals recovering from mental ill health. Businesses operating in the last financial year were a polyurethane light manufacturing business, an artisan bakery (trading as Better Health Bakery) and a bicycle workshop (trading as Better Health Bikes). Unfortunately, we took the difficult decision to close the bakery in June 2023.

The charity represents one of the separately registered charities alongside which the Psychiatric Rehabilitation Association works to carry out its objectives.

All trustees give their time voluntarily; no trustee receives any benefits.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.

2

BETTER HEALTH PRODUCTS LIMITED

THE DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2023

REVIEW OF DEVELOPMENTS

Better Health Products Limited operates from the London Borough of Hackney.

There have been no significant changes in the level or nature of the company’s activities during the year. However, as mentioned above the bakery closed in June 2023.

RESERVES POLICY

The company carries out a variety of long-term projects. The directors have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. The directors consider that the free reserves of £51,273 are adequate to meet the ongoing commitments of the company.

INVESTMENT POLICY

The directors have power under the trust deed to invest in such assets as they see fit.

FINANCIAL POSITION

The Financial Statements and Notes which follow this report 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 UK and Republic of Ireland (FRS 102), and in accordance with the provisions of the Companies Act 2006 applicable to companies subject to the small companies regime.

The Statement of Financial Activities shows net income for the year of £1,715 for the company.

The year-end financial position, reflected by the balance sheet, is considered satisfactory.

It is the policy of the directors to ensure adequate funds are always available to the company to meet its objectives, and also the solvency requirements imposed by the Companies Act.

3

BETTER HEALTH PRODUCTS LIMITED

THE DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The trustees (who are also directors of Better Health Products Limited for the purposes of company law) are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

In so far as the directors are aware:

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

AUDITORS

Edmund Carr LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

BY ORDER OF THE BOARD

R B McNeill

..........................R B McNEILL Director

............................. 2023 24 September

4

BETTER HEALTH PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of Better Health Products Limited (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

5

BETTER HEALTH PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

6

BETTER HEALTH PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

7

BETTER HEALTH PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

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

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.

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

R Crace FCA

EDMUND CARR LLP 146 New London Road Statutory Auditor Chelmsford Essex CM2 0AW

.......................... 2023 25 September

Edmund Carr LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

8

BETTER HEALTH PRODUCTS LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Charitable activities
Sales
Total Income
Expenditure on:
Charitable activities
Grant paid
5
Project running costs
5
Total Expenditure
Net movement in funds
Total funds brought forward at 1 April 2022
Total funds carried forward at 31 March 2023		 Total
Funds
2023
£
312,303		 Total
Funds
2022
£
269,497
312,303 269,497
152,000
158,588		 148,000
121,418
310,588 269,418
1,715
49,558		 79
49,479
£51,273 £49,558

The statement of financial activities included all gains and losses recognised during the year.

All the activities of the charitable company are from unrestricted, continuing operations.

9

BETTER HEALTH PRODUCTS LIMITED

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
FIXED ASSETS
Tangible Assets
7
CURRENT ASSETS
Stock
8
Debtors
9
Cash at bank and in hand
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
Other creditors
10
NET CURRENT ASSETS
CAPITAL AND RESERVES
Unrestricted funds:
General unrestricted funds
TOTAL FUNDS
11		 £
£
6,057
53,349
15,368
9,242
77,959
32,743
45,216
£51,273
51,273
£51,273
2023		 £
£
6,115
60,946
16,659
12,647
90,252
46,809
43,443
£49,558
49,558
£49,558
2022		 £
£
6,115
60,946
16,659
12,647
90,252
46,809
43,443
£49,558
49,558
£49,558
2022
£49,558
49,558
£49,558

For the year ending 31 March 2023 the company is entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as the company is a charity, it is subject to audit under the Charities Act 2011.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions of the Companies Act 2006 applicable to companies subject to the small companies regime.

Approved by the Board on …....................... 2023. 24 September

R B McNeill

…......................

R B McNEILL

Company Registration Number: 1049465

10

BETTER HEALTH PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1) ACCOUNTING POLICIES

a) Accounting convention

The financial statements have been prepared under the historical cost convention, and 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The directors consider that there are no material uncertainties about the charitable company's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charitable company.

Better Health Products Limited meets the definition of a public benefit entity under FRS 102.

Better Health Products Limited is a private charitable company limited by guarantee incorporated in England and Wales.

b) Stock and work in progress

The basis of valuation, which is consistent with previous years, is the lower of cost and net realisable value.

c) Depreciation

The cost of fixed assets is written off over their estimated useful lives at the following annual rates:

Plant and Machinery 20 % straight line Bakery Alterations 10 % straight line Cycle Workshop Alterations 10 % straight line

d) Debtors

No general provision is made on trade debtors. Known bad debts are written off and specific provision is made for any considered to be doubtful of collection.

e) Cash

Cash and cash equivalents comprise cash on hand, bank accounts and bank deposits.

11

BETTER HEALTH PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

1) ACCOUNTING POLICIES (continued)

f) Creditors

Creditors are recognised where the charitable company had 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 can be measured reliably. Creditors are normally recognised at their settlement amount.

g) Turnover

Turnover represents the value of goods invoiced during the year, excluding VAT.

h) Grants and Donations

Grants and donations are accounted for on a receipts and payments basis. Where part of a grant is unused, as at the year end, the unused part is carried forward and matched against the relevant future costs.

i) Fund Accounting

Funds held by the charity are either:

Unrestricted general funds - these are funds that can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

j) Financial instruments

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

2) NET MOVEMENT IN FUNDS

The net movement in funds is arrived at after charging/(crediting):

Depreciation
Audit fees
Accountancy fees		 2023
£
3,350
1,400
3,245		 2022
£
3,344
1,360
3,620

12

BETTER HEALTH PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

3) TAXATION

The company is a registered charity and is entitled to those reliefs from taxation which are available to charities.

4) EMPLOYEE INFORMATION

The company had no employee costs during the year (2022: £Nil). All staff members are remunerated by The Centre for Better Health Limited.

None of the trustees or persons connected with them received any remuneration for their services. No trustees were reimbursed for expenses incurred in either the current or prior year.

5) DIRECT CHARITABLE EXPENDITURE

Project running costs:
Cost of sales
Delivery expenses
Repairs and renewals
Market stall expenses
Laundry and cleaning
Printing, postage and stationery
Marketing
Insurance
Electricity and gas
Motor expenses
Staff training
Depreciation
General expenses
Bank charges
Governance cost (note 6)
Grant paid to The Centre for Better Health Ltd
6)
GOVERNANCE COSTS
Audit
Accountancy		 2023
£
94,234
13,275
6,199
456
2,153
1,279
826
923
23,770
40
-
3,350
3,877
3,561
4,645
£158,588
£152,000
2023
£
1,400
3,245
£4,645		 2022
£
72,604
6,872
5,928
196
2,109
837
971
886
12,629
304
1,000
3,344
5,335
3,423
4,980
£121,418
£148,000
2022
£
1,360
3,620
£4,980

13

BETTER HEALTH PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

7) FIXED ASSETS

7)
FIXED ASSETS
Bakery
Alterations
£
Cost
1 April 2022
15,193
Additions
-
31 March 2023
15,193
Depreciation
1 April 2022
13,974
Charge for year
1,219
31 March 2023
15,193
Net book values
At 31 March 2023
-
At 31 March 2022
£1,219
8)
STOCK
Raw materials and consumables
9)
DEBTORS
Trade debtors
Prepayments
10) CREDITORS
Trade creditors
Other taxes and social security
Other creditors
Accruals and deferred income
Amounts owed to related undertakings		 Plant and
Cycle Workshop
Machinery
Alterations
£
£
26,529
2,400
3,292
-
29,821
2,400
22,180
1,853
1,891
240
24,071
2,093
£5,750
£307
£4,349
£547
2023
£
£53,349
2023
£
13,971
1,397
£15,368
2023
£
5,353
5,785
2,972
7,986
10,647
£32,743
Total
£
44,122
3,292
29,821
22,180
1,891
24,071
£5,750
£4,349		 47,414
38,007
3,350
41,357
£6,057
£6,115
2022
£
£60,946
2022
£
15,088
1,571
£16,659
2022
£
5,877
5,185
5,910
4,655
25,182
£46,809

14

BETTER HEALTH PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2023

11) TOTAL FUNDS
1 April 2022
Surplus for the year
Funds at 31 March 2023
Analysis of net assets between funds:
Tangible fixed assets
Net current assets		 2023
£
49,558
1,715
£51,273
General
Unrestricted
£
6,057
45,216
£51,273		 2022
£
49,479
79
£49,558
Total
£
6,057
45,216
£51,273

12) RELATED PARTY TRANSACTIONS

There is no ultimate controlling party.

The majority of the directors of the company are also the trustees of the Psychiatric Rehabilitation Association and directors of The Centre for Better Health Limited.

The only transaction was the grant of £152,000 (2022: £148,000) to The Centre for Better Health Limited. At the year end the company owed £10,647 (2022: £25,093) to The Centre for Better Health Limited, which is shown under creditors.

At the year end Better Health Products Limited owed The Psychiatric Rehabilitation Association £Nil (2022: £89 due from The Psychiatric Rehabilitation Association).

The company is administered through The Centre for Better Health Limited which provides the necessary staff to carry out the company's activities.

13) CALLED UP SHARE CAPITAL

The company is limited by guarantee and does not have a share capital. The subscribers to the company's Memorandum and Articles of Association have undertaken to pay £1 each in the event of the liquidation of the company.

15