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2021-03-31-accounts

Company Registered Number 1197478 Charity Registered Number 269158

London Cyrenians Housing Limited

Report and financial statements

for the year ended

31 March 2021

LONDON CYRENIANS HOUSING LIMITED

CONTENTS PAGES
Legal and administrative details 2
Report of the Board of Trustees and Strategic Report 3-8
Independent auditor’s report 9-12
Income and Expenditure Account 13
Statement of Financial Position 14
Statement of Changes in Equity and Reserves 15
Statement of Cash Flows 16
Notes to the Statement of Cash Flows 17
Notes to the financial statements 18-29

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LONDON CYRENIANS HOUSING LIMITED

LEGAL AND ADMINISTRATIVE DETAILS

STATUS Company limited by guarantee without share capital and registered as a charity REGISTERED OFFICE Carlyle House 235-237 Vauxhall Bridge Road London SW1V 1EJ HONORARY OFFICERS Stephen Bashorun (Chair) Michael Driver (Chair of Finance C’tte) BANKERS Barclays Bank plc Level 27 1 Churchill Place Canary Wharf London E14 5HP AUDITOR Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD SOLICITORS Trowers & Hamlins COMPANY REGISTERED NUMBER 1197478 CHARITY REGISTERED NUMBER 269158 REGISTERED PROVIDER OF SOCIAL HOUSING NUMBER LH4377

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LONDON CYRENIANS HOUSING LIMITED

REPORT OF THE BOARD OF TRUSTEES AND STRATEGIC REPORT for the year ended 31 March 2021

The Board of Trustees presents its report and strategic report and the accounts for the year ended 31 March 2021. The Income and Expenditure Account, Statement of Financial Position, Statement of Changes in Equity and Reserves, and Statement of Cash Flows are included later in this report.

Activities

The principal activity of the Company is the provision of housing and support to single vulnerable people with a range of complex needs.

Public Benefit

In setting objectives and planning our activities we have given careful consideration to the Charity Commission’s general guidance on public benefit. All our activities are undertaken in furtherance of our charitable purposes which are for the public benefit.

Review of Affairs 2021

Introduction

As the green shoots of pandemic recovery tentatively emerge in 2021, we take stock of the financial year just passed. 2020/21 has been an untypical year in that we have chosen not to proactively tender for new services but rather focus on providing staff and service users with continuity and safety in these uncertain times. This was a difficult decision having successfully partaken in market tenders for many years. However, the business of viewing properties, establishing new staff in services, unsettling teams and service users did not sit well with us during such an unparalleled health crisis.

As recovery begins to progress, we will be cautiously reviewing opportunities to develop and grow once more in line with our Strategic Plan. Already we have been shortlisted for a new and innovative mental health service and look forward to working on our response in the year ahead.

Activity

Day Service

We were pleased to add a large day service in Fulham to our services last summer and are undertaking the necessary building improvement works alongside an upgrade for gas, water and electricity to comply with our Green and Sustainability agenda. As a community led organization based in Hammersmith and Fulham for over 50 years, we are pleased that we will be able to create a safe space for our local heroes in health and social care to take part in Yoga, massage, book groups, mindfulness and bridge club.

We also have several interested sponsors who want to work with us to ensure that our “thank you” to those local people who have navigated us so valiantly through the pandemic is ongoing and sustainable. In addition to this we are also planning:

In these challenging times we are thrilled to be putting energies into such a positive service for the local people of Hammersmith and Fulham.

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LONDON CYRENIANS HOUSING LIMITED

REPORT OF THE BOARD OF TRUSTEES AND STRATEGIC REPORT for the year ended 31 March 2021 (continued)

Hidden Homes

Our strategy to generate revenue from non-statutory sources continues apace under the Hidden Homes Program. We have made good use of surplus back land to one of our Ealing properties and the development in total will enable us to create 6 well-appointed flats for market lets. 100% of the rental income will be used to further improve quality standards for service users, staff and services. These local homes are scheduled to be ready by October 2021.

Operational Investment

Despite the restrictions of the Pandemic, we have continued with our core and essential learning and development plans for staff. We have made significant investment in the Relational Security/Trauma informed service model and used the services of a retained expert to embed and cascade best practice.

All services have been comprehensively risk assessed by our retained health and safety expert with more detailed Covid 19 risk assessments also being undertaken. These are regularly reviewed to include advice circulated from local authorities and central government.

We have also used the year to upgrade and improve our IT and telecommunications systems and have an in-house specialist who, having successfully led on the IT migration, is now focusing on telecommunications. In addition, service users now have greater access to digital communication and our activity in this area continues to grow and develop.

Investing in our properties when it was Covid safe to do so has meant that we can begin to open our services for visits from friends and families with improved outdoor and indoor facilities. Throughout the Pandemic we have continued to invest in regular deep and light cleans to keep our services hygienic, and this has been noted by service user as something to keep for the future. We will continue to invest in developing safe homes where people can relax, recover and enjoy.

Risk and uncertainties in the immediate future

With little change from last years review the risks for the sector in general and for London Cyrenians Housing remain:

It is our belief that the impact of the virus will create more need for mental health services like ours in the months and years ahead. In order that we are best placed to deliver cost effective services we have made savings, improved systems and enhanced service delivery.

Risk Management

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LONDON CYRENIANS HOUSING LIMITED

REPORT OF THE BOARD OF TRUSTEES AND STRATEGIC REPORT for the year ended 31 March 2021(continued)

Disabled Persons

Cyrenians has a positive track record of accommodating various disabilities or conditions in the workplace at all levels within the organization. We have a retained occupational health service who support us to make reasonable adjustments to the working environment where safe and appropriate to do so.

Diversity

Cyrenians has a skilled and diverse workforce at all levels within the organization including our trustees, leadership team, management and frontline staff. We continue to review options and opportunities to support people from all walks of life to take part in the running and management of Cyrenians.

Disabled persons

Fair consideration is given to disabled applicants who seek employment with the Company. The Company will also where appropriate provide training and other support to members of staff who become disabled during their employment.

Employee information

Employees are provided with regular bulletins about the organisation’s activities and development plans. Employees also receive briefings through formal and informal Company meetings, staff conference, supervisions, appraisals, and ad hoc meetings and events. The Company values the feedback from its employees which it collects and reviews on a regular basis.

Key performance indicators

The Company’s key performance indicators are occupancy, staff turnover and arrears. Performance against these for 2020/21 was as follows:

2021 2020
Occupancy 92% 88%
Staff turnover 30% 31%
Arrears 4.9% 5.7%

Occupancy levels in 2020/21 were impacted by major works in two properties which involved units being vacant while the work was carried out and replacement service users to be obtained in July 2020. Staff turnover percentage was up compared with last year but this is similar across the sector. Effort is continuously being made to improve the staff turnover. The arrears decrease is due to the fewer units in use during the year.

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LONDON CYRENIANS HOUSING LIMITED

REPORT OF THE BOARD OF TRUSTEES AND STRATEGIC REPORT for the year ended 31 March 2021 (continued)

Value for Money Metrics

The following VfM metrics have been calculated as recommended by the Regulator of Social Housing:

Due to the unique combination of services benchmark data from other similar organisations may not provide meaningful, comparative information. We do however use data obtained through this method gleaned to inform our decisions.

Level of Reserves

In line with best practice Cyrenians seeks to maintain unrestricted reserves and working capital at a level that is prudent and sufficient to ensure that the Company’s current and planned future activities can be operated effectively and to enable any unexpected financial interruption to be satisfactorily managed. No more than 10% of income in any one year is used to increase unrestricted reserves which is a funder requirement. To satisfy these policy objectives Cyrenians aims to maintain its designated and general reserves at a level equivalent to the proportion of projected income which equates to the usual notice period in our operational contracts.

Disclosure of Information to the Auditor

The Board of Trustees (directors and trustees of the company) who held office at the date of approval of this Board report confirm that, so far as they are each aware, there is no relevant audit information of which the auditor is unaware; and each director has taken all the steps that he/she ought to have taken as a director to make himself/herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

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LONDON CYRENIANS HOUSING LIMITED

REPORT OF THE BOARD OF TRUSTEES AND STRATEGIC REPORT for the year ended 31 March 2021 (continued)

The Board of Trustees are appointed following: an open recruitment process; meetings with senior members of staff; attendance as observers at board meetings; and an interview with the Cyrenians Chair: all these steps are in accordance with Cyrenians’ written procedures. The following served during the period:

S. Bashorun H. Maxwell A. Diggle L. Graley(resigned 25.02.2021) M. Driver Prof B. Thomas C. Thompson J. Ward-Smith S. Chamberlain

All members of the Board are members of the Company and guarantee to contribute to the assets of the Company, in the event of it being wound up, such amounts as may be required not exceeding £1. The number of guarantees at 31 March 2021 was nine (2020-9).

Members of the Board have no beneficial interest in the Company and are not remunerated. They are indemnified by the Company against legal action arising in the course of their duties.

DIRECTORS' RESPONSIBILITIES STATEMENT

The Board is responsible for preparing a Report of the Board of Trustees and Strategic Report and the financial statements in accordance with applicable law and regulations.

The law requires the Board to prepare financial statements for each financial year. Under that law the Board has elected to prepare the Company’s financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. The Board 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 Company and of the surplus or deficit for that period. In preparing these financial statements, the directors are required to:

The Board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company, and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. They are also responsible for safeguarding the assets of the Company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

7

LONDON CYRENIANS HOUSING LIMITED REPORT OF THE BOARD OF TRUSTEES AND sfRATEGIC REPORT for the year ended 31 March 2021 (continued) Auditor A resolution to re-appoint M¢JoTe Klngston Smith as audltor to the Company will be submitted to the Annual General Meetlng In September 2021. Thls report was approved by the 8oard ofTrustees on 23 September 2021 and slgned on its behalf by.. Step en Chalr ashorun

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LONDON CYRENIANS HOUSING LIMITED

Opinion

We have audited the financial statements of London Cyrenians Housing Limited (‘the company’) for the year ended 31 March 2021 which comprise the Income and Expenditure Account, the Statement of Financial Position, the Statement of Changes in Equity and Reserves, the Statement of Cash Flows and the 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 FRS 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 annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the

9

other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

[Insert where no material misstatements have been identified in the strategic report, if separately prepared, or trustees’ annual report] In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, 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

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.

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.

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

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:

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

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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 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 company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to 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.

Date: 30 Sept 2021

Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

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LONDON CYRENIANS HOUSING LIMITED

INCOME AND EXPENDITURE ACCOUNT for the year ended 31 March 2021

Note
Turnover
3
Operating expenditure
Exceptional item
8
Operating (loss)/surplus
3
Other income
Interest receivable and similar income
7
Gain/(loss) on fair value of investment
18
Surplus before property revaluation
Gain/(loss) on revaluation of investment
property
9
Surplus for the financial year		 2021
£
8,841,990
(9,363,351)
5,194,378
4,673,017
240,315
36,871
57,840
5,008,043
440,000
5,448,043		 2020
(restated)
£
12,115,878
(9,202,588)
-
2,913,290
125,604
84,541
(31,270)
3,092,165
(30,070)
3,062,095

Registered number 1197478 England and Wales

The notes on pages 15 to 25 form part of these financial statements.

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LONDON CYRENIANS HOUSING LIMITED srATEMENT OF FINANCIAL POSITION as at 31 March 2021 Notes 2021 2020 (reststed) Flxed assets Investment property Tangible assets - housing propertles 3.353,000 9,849,006 2,913.000 10,240,769 io 13,202,006 13,153,769 Current assets Debtors Financial assets-investments Cash at bank and In hand li 19 12 220.181 280,569 6,961,899 372,947 222,729 6,595,124 7,462,649 7,190,800 Credltors.. amounts falllng due In less than one year 13 (1,339,414) {2.948,946) Net current assets 6 123 235 4 241 854 Total assets leA$ current liabllltles 19 325 241 17 395 623 Provisions for liabllities 14 523 607 4 024 034 Net assets 18,801,634 13,353,589 Capltal and reserves Designated reserves Revaluatlon reserves General reserve5 15 1,420,195 1,925,579 15 455 860 1,420,195 1,485,579 10 447 815 18,801,634 13,353,589 The financlal statements were approved by the Board of Trustees on 23 September 2021 and were signed on its behalf by- river, Chair of Finanee Commlttee Stephen. Bashorun, Chalr number 1197478 England and Wales The notes on pages 15 to 25 form part of these financlal statements. 14

Total Reserves £ 12,566,497 787,092 - 13,353,589 253,667 5,194,378 - 18,801,634
Revaluation Reserve £ 1,515,649 - (30,070) 1,485,579 - 440,000 1,925,579
Designated
General		 Reserves
Reserves		 Notes
£
£		 At 1 April 2019(restated)
1,420,195
9,630,653		 Total Comprehensive Income
-
787,092		 Transfer to reserves
-
30,070		 At 1 April 2020(restated)
1,420,195
10,447,815		 Total Comprehensive Income
-
253,665		 Exceptional Item
5,194,378		 Transfers between reserves
-
(440,000)		 At 31 March 2021
1,420,195
15,455,860		 The notes on pages 15 to 25 form part of these financial statements. 15

LONDON CYRENIANS HOUSING LIMITED

STATEMENT OF CASH FLOWS for the year ended 31 March 2021

Notes
Net cash generated from operating
activities
A
Investing activities
Interest received
Purchase of tangible fixed assets
investments
Net cash (used in)/generated from
investing activities
Financing activities
Interest paid
Net cash generated from/(used in)
financing activities
Net (decrease)/increase in cash and
cash equivalents
Cash and cash equivalents at beginning
of the year
Cash and cash equivalents at end of
year		 2021
£
503,172
36,871
(173,268)
366,775
-
-
366,775
6,595,124
6,961,899		 2020
£
191,290
84,541
(2,575,000)
(2,299,169)
-
-
(2,299,169)
8,894,293
6,595,124

The notes on pages 15 to 25 form part of these financial statements.

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LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE STATEMENT OF CASH FLOWS for the year ended 31 March 2021

A RECONCILIATION OF SURPLUS TO NET CASH GENERATED FROM OPERATING ACTIVITIES

Surplus for the financial year
(Gain)/loss on revaluation of investment property
(Gain)/loss on fair value of investment
Interest receivable and similar income
Depreciation charge on tangible fixed assets
(Increase)/decrease in debtors
Decrease in creditors
Decrease in provisions
Net cash generated from operating activities		 2021
£
5,448,043
(440,000)
(57,840)
(36,871)
565,031
152,766
(1,609,532)
(3,518,427)
503,172		 2020
£
2,768,493
30,070
31,270
(84,541)
543,413
(12,757)
(495,916)
(313,739)
191,290

B ANALYSIS OF CHANGES IN NET FUNDS

Cash
Total		 At 1
April 2020
£
6,595,124
6,595,124		 Cash flows
£
366,775
366,775		 Other non-
cash
changes
£
-
-		 At 31
March 2021
£
6,961,899
6,961,899

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LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1 Accounting policies

The principal accounting policies are summarised below.

Basis of preparation

London Cyrenians Housing Limited is a company limited by guarantee without share capital and registered as a charity, incorporated in England and Wales. The address of the registered office is Carlyle House, 235-237 Vauxhall Bridge Road, London, SW1V 1EJ. The company meets the definition of a Public Benefit Entity per FRS 102.

The financial statements are prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice, Accounting by registered social housing providers 2018, (“the SORP”) issued by the National Housing Federation. The financial statements also comply with the Accounting Direction for private registered providers of social housing 2019 (“the Direction”).

These financial statements are prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. The financial statements have been prepared under the historical cost convention, except where otherwise stated, and are presented in sterling £.

Basis for consolidation

The Company is a parent undertaking as disclosed in note 17. The Company has taken exemption from preparing consolidated financial statements under FRS 102 on the basis that its subsidiary is permitted to be excluded from consolidation by section 405 of the Companies Act 2006 on the basis that its inclusion is not material for the purpose of giving a true and fair view. Given that the subsidiary is dormant, these financial statements disclose the result of the Company only.

Going concern

The Board have prepared these financial statements on a going concern basis. This follows a review of expected future cash flows taking into account the timing of expected income and expenditure. Based on that review, the Board consider that all of the Company’s liabilities will be met at or before the point they fall due for a period of at least 12 months from the date of signing the accounts.

In taking this view, the financial challenges resulting from Covid-19 were taken into consideration. We do not envisage that the need for our services will diminish and anticipate that the effect of the virus may increase the need. Many of our commissioners have increased the life of contracts to give organisations, staff and service user’s continuity and certainty. We are however aware that there will be a likely and deep recession and that the expense of supporting organisation through the pandemic will have to be met in part by saving from the public purse. We have therefore begun review of our central services to identify efficiencies, increase output and futureproof the organisation.

Turnover

Charges to residents and income from investments are included in the Income and Expenditure account in the year to which they relate.

Voluntary income is received by way of donation and gifts and is included in full in the Income and Expenditure account when received unless it is provided for a specific purpose in which case it is recognised in the Income and Expenditure account in the period in which the relevant expenditure is incurred.

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LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1 Accounting policies (continued)

Turnover (continued)

Revenue grants including Supporting People are credited to the Income and Expenditure account in the period to which they relate.

Legacies are recognised at the date on which the solicitors acting for the estate confirm that an amount will be payable.

Fixed assets and depreciation

The capital cost of housing properties includes the purchase price and alteration works where this enhances the economic benefit of the property. Housing properties are stated at cost less accumulated depreciation and any recognised impairment losses.

Fixed assets are depreciated at varying rates in order to write off the cost less estimated residual value of the assets over their useful lives. The useful lives are estimated as follows:

Property 13 years Motor vehicles 3 years

The land element of property is not depreciated.

The Company has elected not to adopt component accounting in respect of its old housing properties. This decision was taken due to the fact that the useful life that would be applied to individual components was not deemed to be materially different from the 13 year useful life of property stated above. Component account has been applied in respect of the new addition made during the year and will be applied when substantial works are undertaken on existing properties which require capitalisation. The various components and associated estimated useful lives are:

Kitchens 7 years Roofs 25 and 50 years Bathrooms 10 years Windows & doors 12 years Boiler & Heating 7 years Bricks and mortar 50 years

Impairment of housing properties

At each statement of financial position date, housing schemes are assessed to determine if there are indicators that the property may be impaired in value; if there are such indicators of impairment, then a comparison of the property’s carrying value with its recoverable amount is undertaken. Any excess over the recoverable amount is recognised as an impairment loss and charged as expenditure in the Income and Expenditure account; the carrying value is reduced appropriately.

Investment property

Investment properties, which are properties held to earn rental and / or for capital appreciation, are initially measured at cost and subsequently at fair value. The directors have opted to revalue annually, with the support of independent professional valuers on a periodic basis at the balance sheet date. When the directors revalue the properties they make judgements based on current tenants, remainder of the lease term of tenancy, location, and other market conditions. Gains or losses on revaluation are recognised in the Income and Expenditure account and where these are above depreciated historic cost they are subsequently transferred to the property revaluation reserve.

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LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1 Accounting policies (continued)

Other grants

Grants received from non-government sources are recognised using the performance model. A grant which does not impose a specific future performance condition is recognised as revenue when the grant proceeds are receivable. A grant that imposes a specific future performance related conditions on the company, is recognised only when those conditions are met. A grant received before the revenue recognition criteria are satisfied is shown as a liability in the Statement of Financial Position.

Value added tax

The Company is not registered for VAT purposes and expenditure is shown gross of any value added tax.

Pension costs

The Company contributes to certain employees’ personal pension plans on a defined contribution basis. Contributions are also made to the pension scheme of certain employees in accordance with their rights under TUPE. The pension cost charge represents the contributions payable under the scheme by the Company to the fund. The Company has no liability under the scheme other than for the payment of those contributions.

Contributions to defined contribution pension schemes are charged to the Income and Expenditure account as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the Statement of Financial Position.

Designations

Designated reserves are unrestricted reserves earmarked by the Board for particular purposes. The designations are as follows:

General reserve

This reserve relates to the cumulative retained earnings, excluding revaluations and transfers to designated reserves.

Revaluation reserve

This reserve relates to the cumulative revaluation of investment property.

20

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1 Accounting policies (continued)

Financial instruments

Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument.

Trade (including rental) and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Investments are recognised at their fair value with movements going to the Income and Expenditure account.

Cash and cash equivalents

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank, short-term bank deposits with an original maturity of under a year and bank overdrafts which are an integral part of the company’s cash management.

Employee benefits

Short term employee benefits such as holiday pay are accrued as services are rendered.

Operating leases

Rentals payable under operating leases are charged to Income and Expenditure on a straight line basis over the lease term. The aggregate benefits of any lease incentive are recognised as a reduction in expenses recognised over the term of the lease.

2 Key sources of estimation uncertainty and judgements

The preparation of Financial Statements requires the use of estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenses for the year. Although these estimates and associated assumptions are based on historical experience and the management’s best knowledge of current events and actions, the actual results may ultimately differ from those estimates. The estimates and underlying assumptions are reviewed on an on-going basis.

Critical judgements

The following are critical judgements apart from those involving estimations (which are dealt with separately below), that the trustees make in the process of applying the Company’s accounting policies and that have the most significant effect on the amount recognised in the financial statements:

Liabilities and provisions

Management’s decisions as to whether a balance is recognised as accrual, creditor or provision is based upon whether the balance is deemed to meet the criteria as set in FRS 102, specifically considering, that the Company has an obligation at the reporting date as a result of past event, it is probable that the entity will be require to transfer economic benefits in settlement of this obligation, and that the obligation can be measured reliably. Management have exercised judgement when considering the probability of economic outflow.

21

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

2 Key sources of estimation uncertainty and judgements (continued)

Categorisation of housing properties as investment properties or tangible fixed assets

Properties which are held to earn market rents, capital appreciation or both are accounted for as investment properties. Properties rented to provide social housing and properties used for administrative purposes are classified as tangible assets – housing properties.

Identification of housing property components

As explained in note 1 above, for additions to housing properties and capitalisation of significant works, depreciation is calculated on a component by component basis. The identification of such components is a matter of judgement and may have a material impact on the depreciation charge. The components selected are those which reflect how the major repairs to the property are managed.

Key sources of estimation uncertainty

The estimates and assumptions which have the most significant effect on amounts recognised in the financial statements are discussed below:

Valuation of Investment property

The company holds two investment properties which were previously held as housing properties. After transfer and initial recognition, the investment property is measured at its fair value. The valuation assessment at year end has been performed by the directors of the Company based on publicly available market data.

Useful lives of Company properties

The depreciation applied by the Company to its owned properties takes into account the age and condition of the properties as well as the intensive utilisation sustained by the assets due to the nature of the services and client group of the Company. The accumulated depreciation at 31 March 2021 was £5,164,084 (2020: £4,599,053).

Dilapidations provision

The Company makes provision for dilapidations to its leased properties. The provision takes account of contractual responsibilities, health and safety obligations and any other relevant regulatory requirements.

Bad debt provision

The debtor balances in respect of charges to service users and statutory bodies of £142,381 (2020: £138,054) and revenue grant receivable £66,223 (2020: £165,162) are recorded in the Company’s Statement of Financial Position. A full line by line review of debtors balances is carried out regularly. The bad debt provision against these balances at 31 March 2021 was £108,693 (2020:£101,871) and £30,112 (2020:£31,820) respectively.

Accruals and provisions

The accruals and deferred income balance of £798,101 (2020: £2,200,708) and provision balance (excluding dilapidations) of £0 (2020: £3,992,029) comprise a number of balances which exist for range of different reasons. In arriving at the value of accrual or provision, management have applied estimation to determine the quantum of obligation fall on the Company as at year end. Classification as a short term or long term depends on management’s best estimate of the timing of the obligation falling due.

22

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

3 Prior Year Adjustment Year ended 31 March Year ended 31 March 2020
As
previously
stated		 Effect of
prior year
adjustment		 As
restated
Reconciliation of Income and Expenditure Account
Turnover 9,547,273 2,568,605 12,115,878
Operating Expenditure (9,202,588) - (9,202,588)
Operating Surplus 344,685 2,568,605 2,913,290
Other Income 125,604 - 125,604
Interest receivable and similar income 84,541 - 84,541
Gain/(loss) on fair value investment (31,270) - (31,270)
Surplus before property revaluation 523,560 - 3,092,165
Gain/(loss) on fair value investment (30,070) - (30,070)
Net income 493,490 2,568,605 3,062,095

Reconciliation of Statement of Financial Position

Fixed Assets
Investment property
Tangible assets – housing properties
Current assets
Debtors
Financial assets – investments
Cash at bank and in hand
Creditors: amounts falling due in less than
one year
Net current assets
Total assets less current liabilities
Provisions for liabilities
Net assets
Capital and reserves
Designated funds
Revaluation reserves
General reserves
Total		 Year ended 31 March 2020
As
previously
stated
Effect of
prior year
adjustment
As
restated
-
2,913,000
2,913,000
-
10,240,769
10,240,769
13,153,769
-
13,153,769
-
372,947
372,947
-
222,729
222,729
-
7,190,800
6,595,124
-
7,190,800
7,190,800

-
(2,948,946
(2,948,946
-
17,395,623
4,241,854
-
17,395,623
17,395,623
(6,610,639)
2,568,605
(4,042,034)
10,784,984
2,568,605
13,353,589
1,420,195
1,485,579
10,447,815
1,420,195
1,485,579
7,879,210
-
-
2,568,605
13,353,589

10,784,984
2,568,605

23

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

3 Prior Year Adjustment (cont)

The company previously provided for the cost of obligations under historic contracts that they had no longer have any responsibility to fulfil. These have been released to general reserves.

3
Operating surplus
Is stated after charging:
Depreciation
Auditor’s remuneration – audit services
Operating lease payments - buildings
Social housing income and expenditure
Rental receivable
Service charges
Revenue grants
Void Losses-Operational
Void Losses-Developmental		 2021
£
565,031
20,000
144,720
2021
£
2,595,195
106,805
6,349,953
(158,096)
(51,866)
8,841,990		 2020
£
543,413
18,000
144,720
2020
(restated
)
£
2,444,086
118,730
9,544,821
(130,748)
(154,613)
11,822,276

The expenditure and operating surplus from Social Housing activities are equivalent to the amounts in the Income & Expenditure account.

4
Auditor’s remuneration
Fees payable to the Company’s auditor:
The audit of financial statements of the Company
5
Staff costs
The average weekly number of persons employed
during the year (full time equivalents) was:
Staff costs for the above persons were:
Wages and salaries
Social security costs
Pension costs		 2021
£
20,000
2021
Number
214
£
5,101,250
458,003
128,940
5,688,193		 2020
£
18,000
2020
Number
236
£
5,578,940
488,146
120,134
6,187,220

24

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

6 Emoluments of the Board and senior management team

The directors of the Company do not receive any remuneration and the below amounts relate solely to managerial staff considered to be key management personnel.

Remuneration paid to key management personnel
comprised:
Gross salary
Social security costs
Employer’s pension contributions
Highest paid director’s aggregate emoluments
(excluding pension)		 2021
£
234,385
32,345
13,193
279,923
2021
£
86,365
86,365		 2020
£
307,212
42,395
14,965
364,572
2020
£
86,365
86,365

The Chief Executive is an ordinary member of the pension scheme and no enhancements or special terms apply. There are no other pension arrangements.

The full time equivalent number of staff whose remuneration payable in relation to the period of account fell within the following bands:

period of account fell within the following bands:
£60,001 - £70,000
£80,001 - £90,000
Interest receivable and similar income
7
Bank interest receivable
Dividend from investments
8
Exceptional item		 2021
No.
1
1
2021
£
36,022
849
36,871
5,194,378
2021
£		 2020
No.
1
1
2020
£
82,720
1,821
84,541
-
2020
£

The exceptional item includes the write back of £3.9m of provisions in place to cover the cost of employees being paid the hourly minimum wage for the time spent sleeping in. During the year under review, the High Court ruled that this would not be payable to staff therefore the provision is no longer required. The remainder represents provisions which have been released on the grounds that the Statute of Limitation has expired.

25

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

9
Investment property
Valuation
At 1 April 2020
Fair value adjustment
At 31 March 2021
10
Tangible assets -
housing properties
Cost
At 1 April 2020
Addition in the year
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
11
Debtors
Gross arrears of charges to
customers & other statutory
bodies
Less: provision for bad debts
Revenue grants receivable
Less: provision for fees bad
debts
Other debtors		 Properties
£
9,893,215
173,268
10,066,483
4,599,053
565,031
5,164,084
4,902,399
5,294,162
£
142,281
(108,693)

66,233
(30.112)		 £
2,913,000
440,000
3,353,000
Land
Total
£
£
4,946,607
14,839,822
-
173,268
4,946,607
15,013,090
-
4,599,053
-
565,031
-
5,164,084
4,946,607
9,849,006
4,946,607
10,240,769
2021
2020
£
£
£
138,054
(101,871)
33,588
36,183
165,162
(31,820)
36,121
133,342
150,472
203,422
220,181
372,947		 £
2,913,000
440,000
3,353,000
Land
Total
£
£
4,946,607
14,839,822
-
173,268
4,946,607
15,013,090
-
4,599,053
-
565,031
-
5,164,084
4,946,607
9,849,006
4,946,607
10,240,769
2021
2020
£
£
£
138,054
(101,871)
33,588
36,183
165,162
(31,820)
36,121
133,342
150,472
203,422
220,181
372,947		 £
2,913,000
440,000
3,353,000
Total
£
14,839,822
173,268		 £
2,913,000
440,000
3,353,000
Total
£
14,839,822
173,268
15,013,090
4,599,053
565,031
5,164,084
9,849,006
10,240,769
£
142,281
(108,693)		 2021
£
33,588
36,121
150,472
220,181		 2020
£
36,183
133,342
203,422
372,947

66,233
(30.112)		 165,162
(31,820)

26

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

12
Cash and cash equivalents
2021
£
Cash at bank and in hand
6,961,899
6,961,899
13
Creditors
2021
£
Amounts falling due within one year:
Trade creditors
74,970
Customers’ charges in advance
261,447
Other creditors
64,363
Other taxation and social security
140,533
Accruals and deferred income
798,101
1,339,414
14 Provisions
Dilapidations
provision
£
Other
provisions
£
At 1 April
2020(restated)
343,607
3,698,427
Additions
180,000
-
Released
-
(3,698,427)
At 31 March 2021
523,607
-
15 Unrestricted reserves
Designated reserves
2020
Transfers
between
reserves
£
£
Hidden home Initiative
975,000
-
Innovations and service improvements
150,195
-
Partnerships and alliances
70,000
-
Furniture and equipment replacements
225,000
-
1,420,195		 2020
£
6,595,124
6,595,124
2020
£
81,333
413,532
125,309
128,064
2,200,708
2,948,946
Total
£
4,042,034
180,000
(3,698,427)		 2020
£
6,595,124
6,595,124
2020
£
81,333
413,532
125,309
128,064
2,200,708
2,948,946
Total
£
4,042,034
180,000
(3,698,427)
523,607
2021
£
975,000
150,195
70,000
225,000
1,420,195

27

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

16 Housing units at end of year – supported housing

Housing units at end of year – supported housing
Owned
Managed		 2021
Units
97
92
189		 2020
Units
97
92
189

17 Operating leases

The Company holds properties and office equipment under non-cancellable operating leases. At 31 March 2021, the Company had the following future minimum lease payments under non-cancellable leases:

payments under non-cancellable leases:
For leases expiring:
Within one year
In two to five years
Later than five years		 2021
£
105,180
311,000
8,750
424,930		 2020
£
144,720
314,074
-
458,794

18 Subsidiary undertaking

Name Country of Class of Holding Activity
Incorporation shares
Capital Housing United Kingdom Ordinary 100% Dormant
Limited

The registered office of the above subsidiary was Carlyle House, 235-237 Vauxhall Bridge Road, London, SW1V 1EJ. The subsidiary was incorporated on 15 August 2019 and has remained dormant since incorporation.

19 Financial instruments

Equity instruments measured at fair value through the
income and expenditure account
Current asset unlisted investments
Cash
Ruffer Total Return Fund
Schroder Core UK Equity
Liontrust Income /Neptune Income		 2021
£
37
107,457
77,140
95,935
280,569		 2020
£
37
90,188
56,719
75,785
222,729

28

LONDON CYRENIANS HOUSING LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

Fair value gains and losses

Fair value gains and losses
Gain/(loss) on financial assets (including unlisted
investments) measured at fair value through profit or loss
Current asset unlisted investments		 57,840
57,840		 (31,270)
(31,270)

20 Ultimate controlling party

There is no ultimate controlling party.

21 Capital Commitments

Capital commitments contracted but not provided for in the financial statement were as follows:

On 1 April 2021, London Cyrenians Housing entered a contract of extension and refurbishment of 3 store semi-detached house and a new semi-detached apartment at 152-154 East Acton lane, London W3 7EW.

The best estimate of the of the total cost of this development is £1.2millon.

29