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2024-03-31-accounts

Broadway Lodge Limited (A Charitable Company Limited by Guarantee)

Annual Report and Financial Statements

For the Year Ended 31 March 2024

Company Number: 01201899 Charity Registered in England and Wales Number: 269167

Broadway Lodge Limited Contents For the Year Ended 31 March 2024

Page
Contents 1
Reference and Administrative Details 2
Trustee Directors’ Report 3 – 10
Statement of Trustees’ Responsibilities 11
Independent Auditors’ Report 12 – 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cashflows 18
Notes to the Financial Statements 19 – 30

1

Broadway Lodge Limited Reference and Administrative Details For the Year Ended 31 March 2024

Trustees and Directors A S Lyttelton (Chair)
C Cole
Rev P Davis
C Hall-Tomkin
A Hyde
C Jelf
Dr P Seviour
C Sparks
Chief Executive J Aizlewood
Senior Management Team L Ali
J Pickles
M Trew
G Volans
Principal Office and Registered Office Broadway Lodge
37 Totterdown Lane
Weston Super Mare
Somerset
BS24 9NN
Bankers Lloyds Bank PLC
120 Lewisham High Street
London
SE13 6JG
Solicitors Foot Anstey
The Quad
Blackbrook Park Avenue
Blackbrook Business Park
Taunton
Somerset
TA1 2PX
Auditors Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

2

Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

The Trustees, who are also directors for the purposes of the Companies Act, present their report and the financial statements of the charity for the year ended 31[st] March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s Memorandum and Articles of Association, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1[st] January 2015) – (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and are in accordance with the Companies Act 2006. The charity is variously referred to throughout this report as either “the charity”, “the company” or “the charitable company”.

Reference and Administration Details

Charity number: 269167 Company number: 1201899 Registered address: Broadway Lodge, 37 Totterdown Lane, Weston-super-Mare. BS24 9NN

Structure, Governance and Management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on the 27[th] February 1975, although Broadway Lodge started its work with addiction in 1974.The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

The following trustees who are also directors for the purposes of company law, served during the year:

C Cole: University Lecturer/Strategy & Innovation Consultant University Lecturer/Strategy & Innovation Consultant
P Davis: Supernumerary Minister
P Gay: Property Investor and Farmer (Resigned 9thJune 2023)
C Hall-Tomkin Property Investor and Business Consultant
A Hyde Hospital Director (Appointed 13thMay 2024)
C Jelf: Insurance Broker
S Lyttelton Music Curator and Consultant (Chair of Trustees)
P Seviour: Retired GP
C Sparks: Retired Nurse

Organisational structure

The full Board of Trustees meets a minimum of 4 times a year and is responsible for the strategic direction and policy of the charity. These meetings are also augmented by actual and virtual interim board meetings to support the decision-making process as and when the need arises.

Day to day responsibility rests with the Chief Executive and the Senior Management Team (SMT). The Chief Executive has delegated responsibility from the Board of Trustees to ensure that the charity delivers the services described in the objectives and activities and complies with all applicable statutory requirements.

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Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

Various Committees meet bi-monthly or quarterly with attendance from the Board of Trustees, members of the SMT and representatives from across the organisation. The Committees oversee clinical governance, policies and procedures, health and safety, compliance with applicable statutory requirements and risk assessments. they also ensure through cross-organisation representation that all requirements of the CQC are met.

Our Committee structure is:

Method of Appointment or Election of Trustees

The management of the charity is the responsibility of the Board of Trustees who are elected and coopted under the terms of the Articles of Association.

Policies for the Introduction and Training of Trustees

New Trustees are provided with an induction programme upon joining the charity.

Arrangements for Setting Pay and Remuneration of the Charity’s Key Management personnel

The Board sets the remuneration package for the Chief Executive based on a package commensurate with the industry norm.

The Chief Executive sets the pay level, with ratification of the Board, of all other members of the SMT.

The Chief Executive sets the pay level of all other staff excepting the above.

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Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

Relationships Between Broadway Lodge and Related Parties

Broadway Lodge is not affiliated with any umbrella groups nor does it have any subsidiaries. It occasionally joins other organisations in partnership to bid for contracts in which case a memorandum of understanding underpins the arrangement and a contract delineates the particulars of the partnership if the bid is successful. Broadway Lodge is a member of the Choices Group that is made up of likeminded, independent addiction and rehabilitation entities.

Objectives and Activities

The charity’s objective and principal activity is the treatment of addiction and associated harms of individuals and their families, focusing on the 12-step philosophy. The trustees ensure that at all times and in all areas, policies are in place to enable the charity to fulfil its objectives.

The charity updated its Vison and Mission this year and this is:

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Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

The charity offers an extensive range of flexible treatment and rehabilitation services including detoxification, residential rehabilitation, supported housing and community services. Associated activities including education, training and consultancy is available to schools, colleges, the public sector and corporate organisations. There is also collaborative working with other treatment providers in order to raise awareness of addiction, treatment options and programmes.

How our Activities Deliver Public Benefit

The charity’s treatment programmes continue to provide the opportunity for individuals to become abstinent from their addiction and go on to lead fulfilling lives, many engaging in further education and employment.

Broadway Lodge continues to receive enquiries from individuals, families and health care professionals trying to obtain charitable assistance. The organisation endeavours to provide as much charitable assistance as is feasibly possible, and it is the aim of the charity to significantly increase this offering in the future. It is envisaged that the increased self-paying and corporate markets will help Broadway Lodge to achieve this.

Broadway Lodge has also reinstated education to trainees through placements with the Charity. Mental Health Nurses, Social Workers, Police Officers and Counsellors are able to develop their knowledge of addiction and substance misuse as part of their vocational training.

Financial Review

Result for the Year

Broadway Lodge continues to recover from the effects of the pandemic and as a consequence the Net Income to 31[st] March 2024 was £145,001 (Net Income to 31[st] March 2023 was £39,712).

Longer term debt decreased in the year from £383,994 to £330,140 as Broadway Lodge continues to repay the Coronavirus Business Interruption Loan used to complete a refurbishment of the facilities on offer to the clients. The charity entered into a loan agreement with Triodos Bank plc for £450,000 for this refurbishment project.

The balance sheet remains strong as at 31[st] March 2024 and total charity funds were £2,501,318.

Cash reserves in the year increased by £109,576, reflecting the Net Income in the year. The opening balance of £228,162 increased to £337,738 by 31[st] March 2024.

Reserves Policy

The charity’s reserve policy is to hold two months’ worth of unrestricted activities in liquid funds. This would equate to approximately £400k. The trustees are committed to growing the cash reserves of the charity and this year formulated a cash recovery plan that is regularly tracked and reviewed and was felt necessary following the impact of the pandemic and the refurbishment project.

6

Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

Principal Funding Sources

The charity’s principal funding source is from the provision of detoxification and residential rehabilitation to clients referred by local authorities, NHS bodies, insurance companies and private individuals. The funding allows the provision of a robust medically managed detoxification and therapeutic residential programme. 2023/24 has seen a focus on fundraising so as to add an additional funding source which is delivering sums that are both restricted and unrestricted.

Investment Policy and Objectives

Although the charity has the option to hold funds not required for the day to day running on short term deposits with the bankers, due to the reduction of the reserves following the recent pandemic it is prudent to have instant access to surplus cash at all times for the foreseeable future and not hold funds on deposit.

Fundraising Policy

Fundraising activities are conducted in accordance with the Code of Fundraising Practice issued by the Fundraising Regulator. The charity’s principal means of fundraising is through donations, mainly from former patients and their families and grant applications provided by supporting Trusts. Donations and grant applications have historically represented a very small amount of income, however with the focus on this income stream in the last 12 months the charity is seeing this becoming an important income stream that it will continue to grow in the coming years.

Achievements and Performance

Broadway Lodge Ltd saw a significant increase in the surplus in Unrestricted Funds during the financial year to 31[st] March 2024 when compared to the previous year. The surplus in Unrestricted funds increased by 427% in the year. The main driver for this was a consistent increase in monthly income for the charity throughout the year resulting in a 7% increase overall, whilst costs only increased by 3% despite high inflation rates during the year. As a not for profit organisation, Broadway Lodge operates with very fine margins and this is highlighted by the percentage increase in Unrestricted funds compared to the increase in income, even a small increase in income can make a marked difference in the charity’s ability to create a surplus.

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Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

Broadway Lodge provided 11,726 occupied bed nights of residential treatment in the year to 31[st] March 2024 compared to 10,702 occupied bed nights in the previous year, a 10% increase year on year. Within these figures, local authority funded occupied bed nights increased by 5% whilst privately funded occupied bed nights increased by 35%.

Residential treatment continues to be the primary income for the charity, representing 86% of all income in the graph above. As noted in the trustee report last year Broadway Lodge renewed the contract with North Somerset for the South West Northern Consortium providing detoxification to clients from Bristol, South Gloucestershire, BANES, Gloucestershire, Swindon, Somerset and North Somerset.

Broadway Lodge also continues to provide services funded by the UK Shared Prosperity Fund funded by the Government Department of Levelling Up Housing and Communities. As well as providing Aftercare and access to support for those recovering from addiction, there is now an additional day for ‘Wellbeing’ open to clients that are unemployed, recovering from addiction, domestic abuse, trauma, or mental issues who want to move forward. Broadway Lodge provide women-only and mixed gender sessions to support participants to build confidence, improve self-esteem, connect with others, learn about self-care and move forward. Holistic therapies are also available to clients that attend the Wellbeing sessions.

Whilst costs in the year were not significantly higher than the previous year, Broadway Lodge is mindful that the Cost of Living crisis and higher inflation rates are still a factor for the charity and the staff that work within the organisation. Broadway Lodge is accredited with the Living Wage Foundation and does not pay any member of staff below the Real Living Wage. Broadway Lodge has to ensure the charity staff levels continue to be comprehensive enough to treat clients that are being referred into treatment with ever increasing complex medical and mental health needs, as a consequence staffing costs are expected to significantly increase in the coming year compared to the previous year, this is likely to be around 14% more.

However, our waiting list for treatment remains strong, our financial position thus far is looking positive and as outlined below our intention is to increase bed capacity to assist with covering many of the charity’s fixed costs.

8

Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

Future Developments

Strengthening the Charity

Broadway Lodge continues to review and consider its business model, the focus on fundraising is beginning to pay dividends with more raised this financial year than in prior years and then even more already raised in the new financial year. We are extremely grateful to all the individuals, grant funders, businesses, and charitable organisations who have and are supporting us and the work we do.

We will be increasing our bed capacity by 10 per cent in our rehabilitation facility, with 50% of the cost raised through our fundraising activities, this will in turn improve our financial position, give us more to reinvest in the charity and its work as well as build our reserves and so bursary position. Our bursary beds are an important aspect of what we can do as a charitable organisation and are a part of how we can give back.

We have been growing our profile, within the sector, joining and participating in forums and groups to steer and drive recommendations to government and the such like, but also with local services and businesses. We are an active member of Choices group as a result, have regular visits from the likes of the Hepatitis C trust and Alright my Liver to help clients with diagnoses and treatment pathways and plans for some of the significant health impacts of addiction. We are engaging and presenting to local groups like Social Workers to dispel myths and help with people’s understanding of addiction and what support and help we may provide. Our engagement with local businesses is growing the reach of Broadway Lodge and we are really fortunate to have been chosen by Partner& South West as their charity of the year, we are already benefitting from their support.

50[th] Anniversary

2024 is the year we celebrate 50 years of providing the support and care that we are renowned for. Much has changed over the 50 years and although we follow the 12 step model, we do so in a very 21[st] Century way with a compassionate approach that understands addiction and treatment. We are proud of how we have and continue to evolve what we do so as to be relevant and successful for our clients.

We have a number of events taking place throughout the year, a Golf Day to raise awareness and funds, and our biggest reunion that culminates in a dinner at the Winter Gardens in Weston-super-Mare following time at Broadway Lodge for any ex-clients. There are also a number of fundraising events taking place that individuals have organised all with the goal of delivering £50,000 for 50 years of Broadway Lodge.

50 years of Broadway Lodge has meant that many tens of thousands of people have been positively impacted by the work the team deliver here, covering clients themselves, but also their families, friends, colleagues and the communities they live in.

9

Broadway Lodge Limited Trustee Directors’ Report For the Year Ended 31 March 2024

Risk Management

The Board of Trustees has identified that at present the highest risks for Broadway Lodge are as follows:

R1 Potential reduction in the number of referrals due to austerity measures in Local Authority budgets

R2 Physical and mental health complexity of clients being referred into treatment and the increasing costs of providing professionally qualified staff to facilitate care for clients with complex needs

R3 National supply chain issues of certain medications

To mitigate these risks the following actions have been planned or have already been put in place:

Small company provision

The report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Signed by order of the trustees on 11 November 2024.

A S Lyttelton Chair and Trustee

10

Broadway Lodge Limited Statement of Trustees’ Responsibilities For the Year Ended 31 March 2024

The trustees (who are also directors of Broadway Lodge Limited for the purposes of company law) are responsible for preparing the Trustee Directors’ Annual Report, Strategic Report and the financial statements in accordance with 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).

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 income and expenditure of the charitable company for that period. 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 trustees are aware:

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

Approved by the trustees on 11 November 2024 and signed on their behalf by:

A S Lyttelton Chair and Trustee

11

Broadway Lodge Limited Independent Auditor’s Report to the Members For the Year Ended 31 March 2024

Opinion

We have audited the financial statements of Broadway Lodge Limited (the ‘charitable company’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities including the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement 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 Generally Accepted Accounting Practice, 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 trustee’s 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 the original financial statements were authorised for use.

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

Other information

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

12

Broadway Lodge Limited Independent Auditors’ Report to the Members For the Year Ended 31 March 2024

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 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustee Directors’ Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities set out on page 11, 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.

13

Broadway Lodge Limited Independent Auditors’ Report to the Members For the Year Ended 31 March 2024

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The extent to which the audit was considered capable of detecting 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 charitable 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:

14

Broadway Lodge Limited Independent Auditors’ Report to the Members For the Year Ended 31 March 2024

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the 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 and 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 members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Oram BFP FCA Goodwood House Senior Statutory Auditor Blackbrook Park Avenue for and on behalf of Taunton Albert Goodman LLP Somerset Chartered Accountants TA1 2PX Statutory Auditor

11 November 2024.

15

Broadway Lodge Limited Statement of Financial Activities (including an Income and Expenditure Account) For the Year Ended 31 March 2024

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted Total 2024 tricted tricted Total 2023
Notes £ £ £ £ £ £
Income:
Grants, donations
and legacies 2 13,878 42,500 56,378 151,209 7,000 158,209
Charitable activities 4 2,306,435 239,328 2,545,763 2,031,733 236,087 2,267,820
Exchange gain - - - 125 - 125
Total income 2,320,313 281,828 2,602,141 2,183,067 243,087 2,426,154
Expenditure:
Raising funds 5 1,015 - 1,015 645 - 645
- -
Interest paid 38,774 38,774 30,664 30,664
Charitable activities 6 2,143,755 273,596 2,417,351 2,126,716 228,417 2,355,133
Total expenditure 2,183,544 273,596 2,457,140 2,158,025 228,417 2,386,442
Net income/
(expenditure)for the year 136,769 8,232 145,001 25,042 14,670 39,712
Transfers between funds 17 - - - 7,000 (7,000) -
Net movement in
funds for the year 136,769 8,232 145,001 32,042 7,670 39,712
Reconciliation of funds
-
Total funds brought forward 2,348,647 7,670 2,356,317 2,316,605 2,316,605
Total funds carried forward 2,485,416 15,902 2,501,318 2,348,647 7,670 2,356,317
----- End of picture text -----

The results for the year derive from continuing activities and there are no gains or losses other than those shown above.

The statement of financial activities incorporates the income and expenditure account.

16

Broadway Lodge Limited – Company Registration Number: 01201899 Balance Sheet As at 31 March 2024

----- Start of picture text -----
2024 2023
£ £ £ £
Notes
Fixed assets
Tangible fixed assets 8 2,669,175 2,641,623
2,669,175 2,641,623
Current assets
Debtors 9 157,180 144,966
Cash at bank and in hand 337,738 228,162
494,918 373,128
Liabilities:
Creditors falling due within one year 11 (332,635) (274,440)
Net current assets 162,283 98,688
Total assets less current liabilities 2,831,458 2,740,311
Creditors
Amounts falling due in more than one year 13 (330,140) (383,994)
Total net assets 2,501,318 2,356,317
The funds of the charity:
Restricted funds 15 15,902 7,670
Unrestricted funds 15 2,128,582 1,991,813
Revaluation reserve 356,834 356,834
Total charity funds 2,501,318 2,356,317
----- End of picture text -----

Approved by the Board for issue on 11 November 2024 and signed on its behalf by:

A S Lyttelton Chair and Trustee

C Hall-Tomkin Trustee

17

Broadway Lodge Limited Statement of Cashflows For the Year Ended 31 March 2024

----- Start of picture text -----
Total 2024 Total 2023
£ £
Notes
Cash flows from operating activities
Net movements in funds for the year 145,001 39,712
Adjustments to cash flows from non-cash items
Depreciation and amortisation 8 24,176 24,823
Interest paid 38,774 30,664
207,951 94,554
Working capital adjustments
(Increase)/decrease in debtors 9 (12,214) 21,948
Increase/(decrease) in creditors 10 66,222 15,476
Net cash flow from operations 261,959 131,978
Cash flows from investing activities
Purchase of fixed assets (51,729) (17,951)
(51,729) (17,306)
Cash flows from financing activities
Interest paid (38,774) (30,664)
- -
Advances of new long term loans
Repayments of existing long term loans (61,880) (61,237)
(100,654) (91,901)
Net increase/(decrease) in cash and cash equivalents 109,576 22,771
Cash and cash equivalents at the beginning of 228,162 205,391
the reporting period
Cash and cash equivalents at the end of the 337,738 228,162
reporting period
----- End of picture text -----

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Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

1 Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are:

1.1

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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Broadway Lodge Limited 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). All amounts are presented in £ sterling.

1.2

Going concern

The charity has sufficient reserves to cover the reduced income as service levels caused by the pandemic with income moving back up to pre pandemic levels. The trustees therefore consider that it is appropriate to prepare the accounts on a going concern basis.

1.3 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.4

Income

Income from donations is recognised in the year in which they are receivable when there is evidence of entitlement, receipt is probable and the amount can be reliably measured.

For legacies, entitlement is taken as the earlier of the date on either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income from grants, where ‘capital’ or ‘revenue’, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Where no conditions are attached to grant income they are recognised within donations and gifts and where conditions relating to performance of services are attached, grant income is recognised within charitable activities in the Statement of Financial Activities.

Income from charitable activities is included in the period in which the charity is entitled to receipt, it is probable that economic benefits will flow to the entity and the amount can be reliably measured. Where income is received in advance of provision of detoxification and residential services, income is deferred until the criteria for income recognition is met. Where income has not been received and detoxification and residential services have been provided, income is accrued.

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Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

1 Accounting policies (cont’d)

1.5 Interest received

Expenditure is recognised on an accruals basis to match the period in which the expenditure was incurred. The charity’s significant activity is detoxification and residential services and all support costs are attributable to this activity.

1.7 Pension costs

The charitable company operates a defined contribution pension scheme. Contributions payable to the scheme are charged to the Statement of Financial Activities in the period to which they relate.

1.8 Operating leases

The charity classifies the lease of property and office equipment as operating leases as title remains with the lessor. Rentals are charged on the straight line basis over the term of the lease through the profit and loss account.

1.9 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Restricted funds are donations or grants which the donor has specified are to be solely used for particular areas of the charity.

1.10 Tangible assets

Depreciation is calculated to write off the cost or valuation of fixed assets less residual value over their estimated useful lives at the following rates:-

Freehold land - Nil Freehold property - 2% straight line less residual value Fixtures, fittings and equipment - 20% straight line Motor vehicles - 20% straight line

Fixed assets are valued at cost less depreciation. Freehold property residual value has been considered by the trustee directors’ to equate to the freehold property cost. No depreciation is charged on the freehold property.

The part of the annual depreciation charge on revalued assets which relates to the revaluation surplus is transferred from the revaluation reserve to the profit and loss account.

1.11 Debtors

Trade and accrued income are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

1 Accounting policies (cont’d)

1.13 Creditors

Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

1.14 Deferred income

Deferred income comprises income received in advance specifically for the provision of detoxification and residential services. Deferred income is recognised within income in the Statement of Financial Activities when the conditions for income from charitable activities recognition are met.

1.15 Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:

Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

1.16 Taxation

The company is a registered charity and is therefore not liable to corporation tax or capital gains tax to the extent that its income and gains are applicable to charitable purposes only. Value added taxation is not recoverable by the company, and is therefore included in the relevant costs in the Statement of Financial Activities.

21

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

2 Grants, donations and legacies

Donations and Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2024
Total
£		 Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2023
Total
£
legacies 8,076 12,500 20,576 3,371 7,000 10,371
Grants 5,802
13,878		 30,000
42,500		 35,802 147,838
151,209		 -
7,000		 147,838
56,378 158,209

3 Income from charitable activities

----- Start of picture text -----
Unres- Res- Unres- Res-
2024 2023
tricted tricted tricted tricted
funds funds Total funds funds Total
£ £ £ £ £ £
Detoxification and
residential services 2,303,310 239,328 2,542,638 2,014,519 236,087 2,250,606
- -
Sundry income 3,125 3,125 17,214 17,214
2,306,435 239,328 2,545,763 2,031,733 236,087 2,267,820
----- End of picture text -----

22

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

4 Expenditure from charitable activities

----- Start of picture text -----
Unres- Res- 2024 Unres- Res- 2023
tricted tricted Total tricted ricted Total
£ £ £ £ £ £
Staff costs 1,602,326 273,596 1,875,922 1,653,918 228,417 1,882,335
Household and
maintenance 283,004 - 283,004 212,290 - 212,290
Medical consumables 16,894 - 16,894 20,338 - 20,338
Patient and
- -
programme 21,084 21,084 29,031 29,031
Administration costs 20,073 - 20,073 17,431 - 17,431
- -
Marketing costs 22,484 22,484 13,915 13,915
Legal and
- -
professional 142,738 142,738 142,353 142,353
Bad debts 290 - 290 37 - 37
Depreciation and
amortisation 24,176 - 24,176 24,823 - 24,823
- -
Finance charges 3,666 3,666 5,740 5,740
Audit fee 7,020 - 7,020 6,840 - 6,840
- - - - - -
Accountancy
2,143,755 273,596 2,417,351 2,126,716 228,417 2,355,133
----- End of picture text -----

23

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

5 Wages and salaries

----- Start of picture text -----
|||| |---|---|---| |2024|2023| |£|£| |Wages and salaries|1,561,813|1,560,161| |Social security costs|132,765|136,116| |Other pension costs|94,449|93,822| |Other staff costs|86,895|92,236| |1,875,922|1,882,335|

----- End of picture text -----

The number of employees whose annual emoluments were £60,000 or more were:

----- Start of picture text -----
|||| |---|---|---| |2024|2023| |number|number| |£80,000 - £89,999|1|1|

----- End of picture text -----

Number of employees

The average monthly number of employees during the year was as follows:

----- Start of picture text -----
|||| |---|---|---| |2024|2023| |Doctors|1|1| |Nurses and Healthcare assistants|36|32| |Counsellors|10|10| |Administration|13|15| |Domestic and catering|10|10| |70|68|

----- End of picture text -----

The key management personnel of the charity comprise the trustees, the Chief Executive Officer and the Senior Management Team (SMT). The total employee benefits of the key management personnel of the charity were £329,005 (2023: £326,332). An employee joined the SMT during the year.

24

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

6 Trustee directors

The charity trustees were not paid and did not receive any other benefits as trustees of the charity in the year (2023: £nil). No expenses were reimbursed to trustees (2023: £Nil) during the year. No charity trustee received payment for professional or other services supplied to the charity (2023: £nil).

There were no other related party transactions in the year (2023: none).

7 Net income for the year before transfers

----- Start of picture text -----
2024 2023
£ £
This is stated after charging:
Depreciation and amortisation 24,176 24,823
Operating leases 8,633 13,466
Auditors remuneration
Audit services 6,270 6,090
Other services: accounting 750 750
----- End of picture text -----

25

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

8 Tangible assets

----- Start of picture text -----
Fixtures,
Freehold Fittings and Motor
Property Equipment Vehicles Total
£ £ £ £
Cost
At 1 April 2023 2,580,357 374,755 21,978 2,977,090
- -
Additions 51,729 51,729
At 31 March 2024 2,580,357 426,483 21,978 3,028,819
Depreciation
-
At 1 April 2023 313,489 21,978 335,467
- -
Charge for the year 24,176 24,176
At 31 March 2024 - 337,665 21,978 359,643
Net book value
At 31 March 2024 2,580,357 88,818 - 2,669,176
-
At 1 April 2023 2,580,357 61,266 2,641,623
----- End of picture text -----

The company has created a fixed legal charge over some of the properties of Broadway Lodge Limited and such assets are included within freehold property above.

26

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

8 Tangible assets (cont’d)

Historical cost of previously revalued freehold property

----- Start of picture text -----
Cost £
At 1 April 2023 2,223,523
At 31 March 2024 2,223,523
Depreciation
-
As at 1 April 2023 at 31 March 2024
Net book value
At 31 March 2024 2,223,523
At 31 March 2023 2,223,523
----- End of picture text -----

The freehold property was valued by professional external valuers in March 1998. The valuations were on the basis of existing or change of use excluding internal fittings, loose furnishings and loose furniture.

9 Debtors

9
Debtors
Trade debtors
Prepayments and accrued income		 2024
£
132,972
24,208
157,180		 2023
£
97,523
47,443
144,966
10
Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred income
Other creditors
Bank loans		 2024
£
88,747
163,574
26,005
54,309
332,635		 2023
£
50,702
151,851
9,552
62,335
274,440

27

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

11 Deferred income

----- Start of picture text -----
2024 2023
£ £
Balance as at 1 April 2023 69,113 73,641
Amount released to income for charitable activities (315,046) (238,226)
Amount deferred in year 336,445 233,698
Balance at 31 March 2024 90,512 69,113
12 Creditors: amounts falling due in more than one year
2024 2023
£ £
Bank loans due < 5 years 384,449 446,329
- -
Bank loans due > 5 years
384,449 446,329
Less included in current liabilities (54,309) (62,335)
330,140 383,994
----- End of picture text -----

Two bank loans are repayable over a 15 year term, ending in 2024 - 2025. Interest on these loans is variable at base rate + 1.75 and + 2.00%, with a minimum rate of 3.5%.

One bank loan is repayable over a 6 year term, ending January 2027. Interest on this loan is variable at base rate + 4.5%, with a minimum rate of 4.5%.

All borrowings of £384,449 at the year end (2023: £446,329) are secured by way of fixed legal charges over some of the properties of Broadway Lodge in favour of one banking institution.

28

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

13 Statement of funds – 2024

----- Start of picture text -----
Opening Incoming Resources Closing
balance resources expended Transfers balance
£ £ £ £ £
Restricted funds
Medlock Charitable Trust - 10,000 - - 10,000
The Lennox Hannay
Charitable Trust - 2,000 - - 2,000
Renishaw Charities
500 500
Committee - - -
- -
UK Shared Prosperity Fund 30,000 (27,669) 2,331
Consortium 7,670 239,328 (245,927) - 1,071
Total Restricted Funds 7,670 281,828 (273,596) - 15,902
Unrestricted funds
General 1,991,813 2,320,313 (2,183,544) - 2,128,582
Revaluation reserve 356,834 - - - 356,834
-
2,356,317 2,602,141 (2,457,140) 2,501,318
----- End of picture text -----

Statement of funds – 2023

----- Start of picture text -----
Opening Incoming Resources Closing
balance resources expended Transfers balance
£ £ £ £ £
Restricted funds
Donations - 7,000 - (7,000) -
South West Northern
Consortium - 236,087 (228,417) - 7,670
Total Restricted Funds - 243,087 (228,417) (7,000) 7,670
Unrestricted funds
General 1,959,771 2,183,067 (2,158,025) 7,000 1,991,813
Revaluation reserve 356,834 - - - 356,834
-
2,316,605 2,426,154 (2,386,442) 2,356,317
----- End of picture text -----

29

Broadway Lodge Limited Notes to the Financial Statements For the Year Ended 31 March 2024

13 Statement of funds (cont’d)

Where transfers have been made from restricted funds, these have been made as funds have been used for the purpose intended and the remaining funds are to be used on activities to further any of the purposes of the charity.

14 Analysis of net assets between funds

----- Start of picture text -----
Unres- Res- Unres- Res-
2024 2023
tricted tricted tricted tricted
funds funds Total funds funds Total
£ £ £ £ £ £
Fixed assets 2,669,175 - 2,669,175 2,641,623 - 2,641,623
Current assets 479,016 15,902 494,918 365,458 7,670 373,128
Current liabilities (332,635) - (332,635) (274,440) - (274,440)
Creditors due after
- -
more than one year (330,140) (330,140) (383,994) (383,994)
2,485,416 15,902 2,501,318 2,348,647 7,670 2,356,317
----- End of picture text -----

15 Obligations under leases

Operating leases

The total future minimum rentals payable under non-cancellable operating leases funded by unrestricted funds are as follows:

unrestricted funds are as follows:
Operating lease which expire:
Within one year
Within two and five years		 2024
£
6,286
27,050
33,336		 2023
£
8,106
1,911
10,017

30