Registered charity: 267458
## THE PHILIP KING HOMES ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31[st] MAY 2024
Correspondence address: Westacre Well Hill Lane Orpington BR6 7QJ
## **Professional advisors**
Land agent: Savills, Oxford Solicitors: SE Solicitor 52 – 54 The Green 50 South Bar Street Banbury Oxford OX16 9AB Bank: HSBC
**Contents:** Page Report of the Trustees 1 – 2 Independent Examiner’s report 3 Accounts 4 - 6
**THE PHILIP KING HOMES** Registered Charity No: 267458
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDING 31ST MAY 2024**
The Philip King Homes was set up in 1974 by Mrs. Alice Maud King, known as Susie King. The object of the Trust is "To provide refuge or residential or holiday accommodation for persons in need or distress or elderly gentlefolk suffering financial hardship who require a period of rest of convalescence".
Trustees who served during the year were: Mrs Anne Ireland (Chairman) Ms Margot Green Mr Steve McCann The Rev'd Bill Warren
The Trust does not have any employees.
## **ACTIVITIES**
## **Provision of housing for tenants:**
The Trust owns flats in Croydon, which are rented to tenants selected by the Trustees. The Trust owns long leases and a share of freehold in common with other leaseholders of each respective block of flats. Rents are subsidised and are charged at the discretion of the Trustees. In view of the pressures of the continuing high cost of living on tenants’ restricted incomes, the Trustees have again decided to leave rents unchanged from 2023. The Trust funds all service charges, repairs and maintenance and redecoration for their tenants. The selection of tenants is entirely at the discretion of the Trustees'. Most tenants are long-term, and the Trustees would only expect to end tenancies when tenants either become unable to cope with independent living, wish to move out of the area, or on death.
Sadly, two of the Trust’s long-term tenants have recently died. Danny Bowes, the tenant of the flat at 164 Chichester Road, Croydon, died in October 2022, as reported last year. Bryan Cutts, the tenant of 72 Bardsley Close, Croydon died after a long period of ill-health in July 2023. In view of the very significant change in the Trust’s focus arising from the imminent sale of the Trust’s land in Oxfordshire, the Trustees decided not to find new tenants and both flats were sold. The Trust now owns just 2 flats.
## **Land in Oxfordshire:**
The Trust owns approximately 68 acres of agricultural land in Kidlington, Oxfordshire. As reported in previous years, in 2017, following advice from their land agents, Savills, the Trustees entered into a promotion agreement with Barwood Development to obtain planning permission for housing development on the land.
The Trustees are pleased to report that a Resolution to Grant planning permission was finally obtained from Cherwell District Council in October 2023. Following professional advice from Savills and Barwood Development, the land was immediately offered for sale through competitive tender. As at the year end, a contract for sale to Vistry Homes Limited had been agreed, subject to approval of the Vistry Group Plc main board. Formal approval of the contract was received after the year end, at the beginning of July, and contracts exchanged on 19th July 2024.
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Completion of the sale will follow formal agreement of the S106 contributions, for which negotiations are almost complete. Full planning permission will be granted once the S106 agreement is signed, and completion will occur after the expiry of the Judicial Review period. Completion is expected towards the end of the calendar year 2024.
Receipt of the completion sum will be spread over 3 years. Payment of Barwood’s 12.5% share will also be spread equally over the same dates.
## **VALUATION OF ASSETS**
In previous years, the Oxfordshire land has been valued conservatively at £1m in the Balance Sheet as no planning permission had been obtained. At 31st May 2024, the land has been revalued at £30m, which reflects the contract value, less professional costs (including some contingencies) and Barwood’s promotion share. This leads to an unrealised gain at the Balance Sheet date of £29m.
The sale of the two Croydon flats gave rise to a realised gain of £20,000 in the year. Proceeds from the sales have been invested in interest-earning deposits. Trustees have reviewed the valuation of the other flats in the Balance Sheet at the year-end date and consider that they are fairly represented at current market values.
## **FINANCIAL SUMMARY**
During the year the Trust made an operating surplus of £34,387 (2023: £45,148). Income increased from £58,262 to £73,932 as a result of increased interest on the deposit of the two flat sales proceeds. Expenditure increased from £13,114 to £39,545. There was exceptional expenditure of £10,017 to secure a electrical power infrastructure necessary for the Oxford land sale, and the selling costs of the two flats totalling £15,263.
## **INVESTMENTS**
The Trust retains accumulated income on deposit. In view of the expected receipt of funds from the sale of the Oxford land, the Trustees resolved to open investment accounts with Edentree Investment Management Ltd and Y-Tree Limited. The Edentree account was opened with an initial £20,000 just prior to the year-end. No funds have yet been transferred to the Y-Tree account. Both investments are intended to be relatively short-term, to cover the period during which the Trustees decide the future use of the Trust’s funds.
## **FUNDS**
The Trust has historically divided its funds between a General Fund and a Property Fund. The latter consisted of accumulated gains on the sales of flats from time to time since the charity’s inception. Both funds are unrestricted and undesignated. The two funds have been amalgamated this year into a single General Fund going forward.
Signed:
Date:
13th September 2024
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## **THE PHILIP KING HOMES, REGISTERED CHARITY NO 267458**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PHILIP KING HOMES**
I report to the trustees on my examination of the accounts of the above charity (“the Trust” for the year ending 31st May 2024.
## **Responsibilities and basis of report**
As the charity trustees, you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the Act”).
I report in respect of my examination of the Trust’s accounts carried out under Section 145 of the 2011 Act, and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that, in any material respect,
- the accounting records were not kept in accordance with section 130 of the Act; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Louise Hallsworth, FCA**
Baxter & Co Chartered Certified Accountants Lynwood House, Crofton Road Orpington Kent BR6 8QE
Dated: 13 September 2024
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**THE PHILIP KING HOMES REGISTERED CHARITY NO: 267458 ACCOUNTS FOR THE PERIOD ENDED 31st MAY 2024**
## **INCOME AND EXPENDITURE ACCOUNT**
||**2023**
**INCOME:**
30,060
Gross rentals from properties
8,686
Agricultural income and wayleaves
19,466
Interest on cash deposits
50
Compensation from HMRC re late VAT refund
58,262
**Total income:**
**EXPENDITURE:**
5,855
Rental property service charges & maintenance
2,973
Letting agents fees
1,957
Post-tenancy costs
1,389
Oxford Land Agents' fees and expenses
0
Oxford land - SSE connection
0
Professional fees - flat sales
880
Professional fees - Oxford
0
Professional fees - Independent examination
60
Bank charges
13,114
**Total expenditure:**
45,148
**SURPLUS FOR THE YEAR**
0
Realised gain on sale of 72 Bardsley Close
(13,000)
Unrealised loss on valuation of 164 Chichester Road
0
Unrealised gain on valuation of Oxford land
**TOTAL GAIN / (LOSS)**
(13,000)
**ON REVALUATION OF PROPERTY**
32,148
**SURPLUS AFTER GAINS ON REVALUATION**||**2024**
18,810
5,280
49,842
0
3,145
2,130
720
1,736
10,017
15,262
4,675
1,800
60||**2024**
73,932
39,545|
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
|||||||
|||||34,387
20,000
0
29,000,000||
|||||29,020,000||
|||||||
|||||29,054,387||
All income and expenditure is unrestricted.
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**THE PHILIP KING HOMES REGISTERED CHARITY NO: 267458 ACCOUNTS FOR THE PERIOD ENDED 31st MAY 2024**
|**2023**
1,000,000
230,000
253,500
250,000
235,000
968,500
1,968,500
19,050
0
19,050
764,162
0
764,162
2,733
(238)
785,707
2,754,207
230,520
45,148
0
275,668
2,491,539
(13,000)
0
0
2,478,539
2,754,207|**BALANCE SHEET AS AT 31st MAY 2024**
**FIXED ASSETS**
**Property**
Freehold land at Kidlington, Oxford
Leasehold flats (with share of freehold):
15 Fairhaven Court
8 Coverdale Gardens
72 Bardsley Close
164 Chichester Road
**Total Fixed Assets:**
**CURRENT ASSETS AND LIABILITIES**
**Balances at bank**
HSBC Current A/c
HSBC Deposit A/c
**Short-term investments**
CCLA COIF Deposit Fund
Edentree Short term Bond
Sundry debtors and prepayments
Sundry creditors and accruals
**Total Net Current Assets:**
**TOTAL NET ASSETS**
**REPRESENTED BY:**
**General Fund (unrestricted):**
Balance b/fwd at 1st June 2023
Surplus for year
Transfer from Property Fund
Balance c/fwd at 31st May 2024
**Property Fund (unrestricted):**
Balance b/fwd at 1st June 2023
Realised gain /(loss) on sale of flat
Unrealised gain on Oxford land valuation
Transfer to General Fund
Balance c/fwd at 31st May 2024||
|---|---|---|
||||
||||
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THE PHILIP KING HOMES Registered Charity: 267458
## **Accounting Policies**
1. The accounts are prepared on an accruals basis.
2. The Trust has no employees. Trustees receive no remuneration but are reimbursed for expenses that are necessarily incurred by them on the Trust’s affairs.
3. Fixed Assets:
- The valuations of fixed assets are reviewed annually by the trustees and adjusted as necessary to reflect current market values.
4. Investments:
Monies surplus to current operating needs are invested in deposit accounts at HSBC and the CCLA COIF Charities Deposit Fund. Just prior to the year-end, a short term bond investment account was opened with Edentree Investment Management Limited.
5. Funds:
- All funds are unrestricted. The Property Fund was incorporated during the year into the General Fund as the trustees considered that there was no continuing purpose in its separate identity.
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