**Registered number: 01220696 Charity number: 270060**
## **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the company, its Trustees and advisers**|1|
|**Trustees' report**|2 - 9|
|**Independent auditors' report on the financial statements**|12|
|**Consolidated statement of financial activities**|13|
|**Consolidated balance sheet**|14|
|**Company balance sheet**|15|
|**Consolidated statement of cash flows**|16|
|**Notes to the financial statements**|17 - 44|
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**Trustees**|The Right Reverend Stephen Platten (resigned 23 January 2020)|
|---|---|
||The Reverend Dr Simon M Jones, Chair|
||Ben Andradi (appointed 31 January 2020)|
||Sumita Honey (resigned 23 January 2020)|
||Christopher J H Adams|
||Helen M K Couldrey|
||The Very Reverend Jane Hedges (appointed 23 January 2020)|
|**Company registered**
**number**
01220696
**Charity registered**
**number**
270060
**Registered office**
13a Hellesdon Park Road
Norwich
NR6 5DR
**Company secretary**
Dominic G Vaughan
**Chief executive officer**
Dominic G Vaughan
**Independent auditors**
Larking Gowen LLP
Chartered Accountants
King Street House
15 Upper King Street
Norwich
NR3 1RB
**Bankers**
Santander UK PLC
Second Floor
The Bell
5 Orford Hill
Norwich
NR1 3QB
**Solicitors**
Bates Wells
10 Queen Street Place
London
EC4R 1BE||
Page 1
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020**
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Hymns Ancient & Modern Limited (the company and the group) for the ended 30 September 2020. The Trustees confirm that the Annual Report and financial statements of the company and the group comply with the current statutory requirements, the requirements of the company and the group's governing document and the provisions of the Statement of Recommended Practice (FRS102) "Accounting and Reporting by Charities" (SORP (FRS102)).
## **Structure, governance and management**
## **CONSTITUTION**
Hymns Ancient and Modern Limited (HA&M) is a company limited by guarantee and accordingly does not have a share capital. The liability of the members is limited to an amount not exceeding £1 each. The company is governed by its Memorandum and Articles of Association formed in 1975 and amended in 2008. It is registered as a charity with the Charity Commission.
## **METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES**
The Council of Management (Trustees), which should number not less than three nor more than seven, administers the charity. Trustees retire after three years but are able to be re-elected (up to three times plus 1 year). The Council of Management regularly reviews the range of skills amongst Trustees. The chairman is appointed by the Council of Management and there is no limit on the length of term the chairman can serve within the overall limit of a Trustee. New Trustees are found from the contacts and networks of existing Trustees, outside advisors and by advertising. When recruiting new Trustees, the Council of Management looks for individuals with skills and experience which are of value to the charity.
## **POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES**
Potential Trustees are interviewed by the Council of Management and are provided with a pack of information including recent accounts and a copy of the Memorandum and Articles of Association. When a new Trustee joins the Council of Management they are provided with further information regarding finances, governance and charitable objectives including minutes of meetings for the previous year. They also receive documents on best practice taken from the Charity Commission website.
Trustees are highly experienced individuals and have a good understanding of what is involved in being a trustee of a charity. Where appropriate, the charity supports the training of Trustees including, for example, attendance at relevant seminars or events.
The Trustees are the directors of the company for the purposes of the Companies Act 2006. During the year these Trustees may receive remuneration within the limits set by the Articles of Association of Hymns Ancient & Modern Ltd.
## **ORGANISATIONAL STRUCTURE AND DECISION MAKING**
The Council of Management meets quarterly. A Chief Executive is appointed by the Council of Management to manage the Charity. As a result of the size of the Charity, the Trustees delegate responsibility for day to day management to staff using planning and budgeting procedures, and delegation with segregation of duties.
Page 2
## **HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **PAY POLICY FOR KEY MANAGEMENT PERSONNEL**
Remuneration for all staff is set by the Council of Management annually. The annual amount is based on inflation and takes into account the final contribution figure in the annual accounts. Key management comprises the Senior Management Team:
Dominic Vaughan Sue Stapleford Stephen Rogers Stephen Dutton Paul Handley Christine Smith Michael Addison Aude Pasquier
## **RELATED PARTY RELATIONSHIPS**
HA&M has one 100% subsidiary company, G J Palmer & Sons Limited, which is dormant.
## **RISK MANAGEMENT**
The Council of Management has examined the principal areas of the Charity's operation and consider the major risks faced in each of those areas.
In the opinion of the Council of Management, the Charity has established resources and review systems which have been fully documented and which should allow these risks to be mitigated to an acceptable level in its day to day operations. In addition to procedures and process mitigation, where possible insurance has been purchased to mitigate financial risk. The key risk area for the organisation is potential change to the market resulting in challenges to sales.
There is a strategy for managing risk and this is supported by the Risk Assessment Document which rates risks according to their impact and probability. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects.
A business continuity programme has been developed with Scenaris Ltd which will be implemented in the event of a major disaster. A test of the major elements of the plan has been carried out and lessons documented. It is intended to carry out occasional tests in the future.
HA&M have engaged Stallard Kane Associates Ltd to help ensure that best practice is followed in health and safety management and Bates Wells together with an HR consultant provide human resources support to ensure the safety and wellbeing of staff, customers and visitors to the charity's buildings and events. The organisation has qualified for a CyberEssentials certificate.
Page 3
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Objectives and Activities**
## **POLICIES AND OBJECTIVES**
HA&M's vision is to enable a greater engagement of the Christian religion worldwide through high quality publishing activities and targeted grant giving. It aims to build on its strong Anglican heritage to be the publisher and partner of choice in the world of Christian teaching, liturgy and music. It will provide products, services, events and financial support to achieve this goal.
More information about HA&M can be found on our website www.hymnsam.co.uk.
The objects of HA&M are:
- to promote the advancement of religion;
- to establish and support or aid in the establishment and support of any Charitable Corporation, Association, Institution, College, School, Society or Body whatsoever which in the opinion of the Hymns Ancient and Modern is connected with the work of the Church of England or any Church in communion with it, and to subscribe and guarantee money for any such charitable purpose;
- to aid and support any Charitable Corporation, Association, Institution, College, School, Society or Body which may not be in a direct relationship with the Church of England as aforesaid but whose aims and objects are, in the opinion of the Association, such as a Church of England organisation could properly aid and support.
The main objectives for the year continue to be those as stated above.
The means employed to achieve the Charity's objectives are as follows. The organisation engages in the publishing of religious journals, books, electronic products and provides publishing, distribution and related services to other religious organisations and publishers.
## **MAIN ACTIVITIES UNDERTAKEN TO FURTHER THE CHARITY'S PURPOSES FOR PUBLIC BENEFIT**
Details of the main activities undertaken are included within Policies and Objectives (above) and Review of Activities (below).
Page 4
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **GRANT MAKING POLICIES**
Grants are awarded based on the following criteria:
- the project will be of real value and will make a difference to a substantial group of people. A project which is of limited interest or value will not normally be considered unless the project will clearly have a wider benefit;
- The applicant is capable of carrying out the project;
- The applicant has a carefully budgeted project and has, and will, make full disclosure to the Trustees of the sources of other funding and if fortunate enough to be given more than sufficient for the project will immediately inform the Trustees to consider the surplus. The applicant should also supply a copy of their latest published financial statement if requested; and
- In order to complete the successful grant process the Trustees will expect a report on completion of short term projects or an annual progress report for long term projects.
## Proactive giving:
The Trustees will solicit ideas from others to help develop initiatives in our fields of interest. HA&M will seek advice on how it might be more proactive, rather than simply react to applications. Currently there are three main areas of interest:
- Music and Education: the development of church music understanding, knowledge and related educational opportunities.
- Liturgy (with special reference to training in liturgy).
- Books - to provide training colleges and organisations, particularly in developing countries, with publications they need to further their work and develop their library.
The Trustees continue to reserve the right to vary the amount allocated in total and to each area and are solely responsible for accepting or rejecting requests. During the Covid-19 pandemic, grants have been reduced or not awarded. This is being reviewed regularly.
Staff have been encouraged to propose a single suitable charity, possibly local, that we would be able to work with directly, as well as provide grants for specific projects.
Details are shown on the company website (www.hymnsam.co.uk).
Page 5
## **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Group Strategic Report**
## **Achievements and Performance**
## **REVIEW OF ACTIVITIES**
The general economy continues to be a challenge for publishers, booksellers and charities, and from March 2020 the effects of the Covid-19 Pandemic. Trading was affected by the lockdown and the effect of closure of bookshop, churches and many businesses. Advertising was also greatly reduced for at least 6 months when fewer jobs and church resources were being promoted. It was agreed by the trustees in March 2020 that no more grants to charities would be awarded until further notice to protect funds for the main activity of the promotion of religion. Hymnbook grants would continue.
Each division has clear financial objectives which reflect the overall annual budget.
The service divisions are expected to maintain or grow the service client base. All the divisions reflect the overall charitable aims and have achieved the financial and other related objectives set at the beginning of the year.
Grants of hymn books have been made amounting to £24,676. Grants to approved charities were £6,735. No funds have been designated for grants offered to charities which are contingent on future criteria. Since March 2020 no grants have been given to approved charities.
## **Church Times and Periodicals Division**
Church Times continues to maintain its position as the leading Anglican weekly newspaper. Subscriptions continue to be positive and have increased over the year thanks to increased resources for readers and digital requirements during lockdown. The website and app are well used. All issues since the first in 1863 are available in digital format as part of the subscription or as a separate purchase. The cost of the app to users is part of the paper subscription, it can be purchased directly from Apple or from the HA&M website. Other publications are continuing to develop in print and digital form. Ordinands continue to get a free subscription during training.
## **Book Publishing and Distribution Division**
Book publishing under the SCM Press and Canterbury Press imprints have continued to thrive over the year. Church House Publishing titles were published on behalf of The Archbishops' Council. St Andrew Press, published on behalf of The Church of Scotland, also contributed to book sales. Overall, titles have sold well. The bookselling website has continued to thrive and microsites have been developed as part of the services offered to a number of distribution and publishing clients. Sales were improved by providing titles in digital format. Apple and Android Apps and print on demand versions of many titles continue to be added to the list and are providing a significant contribution to sales. The development of upgraded website-based products such as Crockfords and the C of E yearbook have shown good growth in users and income. Some audio books are now being offered. Discounts for students and subscriber to Church Times are available.
## **Bookshop Division**
Church House Bookshop has continued to trade during the Covid-19 crisis and during periods of lockdown has only been able to provide a much needed online and mail order service. Physical events are not possible but virtual book launches and other online selling opportunities have been developed.
## **Key Performance Indicators**
The main key performance indicators used by the council of management are performance against budget and
Page 6
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
related targets including contribution.
## **Financial review**
## **RESERVES POLICY**
The Council of Management has reviewed the reserves of the charity. The review concluded that HA&M needed to maintain an adequate reserve balance so as to be able to continue to make grants and be able to take advantage of potential future opportunities. The level of free reserves required to meet these objects is estimated to be equivalent to three months of operating costs. As at 30 September 2020 three months equated to £1,750,000.
The unrestricted reserves at the year-end amounted to £6,396,272, however, this includes tangible and nontangible fixed assets amounting to £732,438. Free reserves are above target as at 30 September 2020, but the Trustees are mindful of business requirements and are comfortable with this current position. To ease cashflow during the Covid crisis, £500,000 was drawn down.
There is £1,138,121 in a long-term investment reserve rather than working capital. This will not affect the investment of those funds, merely how they are used. These long term reserves would be used as an emergency fund in the event of a major disruption to the business: part of HA&M's risk management/business continuity planning and as a fund to cover future major business opportunities should these arise.
## **FINANCIAL REVIEW**
There were net outgoing unrestricted resources for the year ended 30 September 2020 for the group of £222,712 (2019: £502,728 net incoming resources). The unrestricted fund balances at the year end were £6,396,607 (2019:£ 6,619,319). The net incoming restricted resources for the year were £NIL (2019: £NIL) and the restricted fund balances at the year end were £NIL (2019: £NIL).
The main source of funding for HA&M is the sale, distribution and publishing of books and periodicals and events attendance and management. Expenditure has been directly linked to these income sources.
## **CORPORATION TAX**
HA&M is registered as a charitable organisation and has been granted exemption from corporation tax under the provisions of section 466 to 493 of the Corporation Tax Act 2010.
## **MATERIAL INVESTMENTS POLICY**
Under the Memorandum and Articles of Association, the Trustees have wide powers of investment. Funds are held in short and longer term investments to provide for long term development, to provide working capital and to enable grant giving. The Charity is looking for investments to support the Charity's objects.
For long term investments, the Council has appointed investment managers, with a mandate to provide a real rate of return of 3%. Investments are held in accordance with the Church of England’s ethical investment exclusion policy.
Page 7
## **HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Plans for future periods**
## **FUTURE DEVELOPMENTS**
The group remains in a strong financial and strategic position with its spread of products, customers and investments. HA&M has a good reputation as a charity, publisher, publishing service provider and partner. It will continue to develop relationships with like-minded organisations and provide its experience and expertise to help them succeed. Investments in new technologies has helped in keeping the organisation trading since the Covid-19 virus struck. These will help to ensure that customers can obtain the religious information and music they need even though the number of specialist outlets is likely to be smaller than ever. There will be a continuing monitoring of performance to ensure all areas are contributing as budgeted, products are produced according to plan and services maintained at the current level.
## **KEY FINANCIAL PERFORMANCE INDICATORS**
As mentioned in Review of Activities above, the main key financial performance indicators used by the Council of Management are performance against budget and related targets including contribution.
## **GOING CONCERN**
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details of the circumstances surrounding this assumption can be found in the Review of Activities section of this report and the Accounting Policies.
## **TRUSTEES' RESPONSIBILITIES STATEMENT**
The Trustees (who are also directors of HA&M for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
Page 8
## **HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **DISCLOSURE OF INFORMATION TO AUDITORS**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
This report was approved by the Trustees, on 4 February 2021 and signed on their behalf by:
................................................ **The Reverend Dr Simon Jones**
Page 9
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED**
## **Opinion**
We have audited the financial statements of Hymns Ancient and Modern Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 30 September 2020 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 30 September 2020 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Page 10
**HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED (CONTINUED)**
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' 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.
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:
- the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.
## **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 Trustees' report including the Strategic report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
Page 11
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYMNS ANCIENT AND MODERN LIMITED (CONTINUED)**
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, 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 Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditors' 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 Auditors' 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.
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 Auditors' 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 those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Julie Grimmer FCA DChA (Senior statutory auditor)**
for and on behalf of **Larking Gowen LLP**
Chartered Accountants Statutory Auditors
Norwich
8 February 2021
Page 12
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
7
**Total income**
**Expenditure on:**
Charitable activities
8
**Total expenditure**
Net gains on investments
**Net (expenditure)/income**
Transfers between funds
22
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
**-**
**5,994,262**
**20,561**
**125,865**
**6,140,688**
**6,689,981**
**6,689,981**
**228,257**
**(321,036)**
**98,324**
**(222,712)**
**6,619,319**
**(222,712)**
**6,396,607**|**Restricted**
**funds**
**2020**
**£**
**44,223**
**-**
**-**
**98,324**
**142,547**
**44,223**
**44,223**
**-**
**98,324**
**(98,324)**
**-**
**-**
**-**
**-**|**Total**
**funds**
**2020**
**£**
**44,223**
**5,994,262**
**20,561**
**224,189**
**6,283,235**
**6,734,204**
**6,734,204**
**228,257**
**(222,712)**
**-**
**(222,712)**
**6,619,319**
**(222,712)**
**6,396,607**|_Total_
_funds_
_2019_
_£_
_63,010_
_7,150,904_
_26,075_
_125,426_
_7,365,415_|
|---|---|---|---|---|
|||||_7,123,323_
_7,123,323_|
|||||_260,636_|
|||||_502,728_|
|||||_-_|
|||||_502,728_|
|||||_6,116,591_
_502,728_
_6,619,319_|
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 17 to 44 form part of these financial statements.
Page 13
## **HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01220696**
## **CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2020**
|**Note**
**Fixed assets**
Intangible assets
15
Tangible assets
16
Investments
17
**Current assets**
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
**Net current assets**
**Total net assets**
**Charity funds**
Unrestricted funds
22
**Total funds**|**1,176,354**
**718,290**
**1,550,176**
**3,444,820**
**(1,680,294)**|**2020**
**£**
**608,729**
**123,709**
**3,899,643**
**4,632,081**
**1,764,526**
**6,396,607**
**6,396,607**
**6,396,607**|_1,078,010_
_873,299_
_2,244,621_
_4,195,930_
_(1,900,436)_|_2019_
_£_
_514,170_
_136,775_
_3,672,880_
_4,323,825_
_2,295,494_|
|---|---|---|---|---|
|||||_6,619,319_|
|||||_6,619,319_|
|||||_6,619,319_|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on 04 February 2021 and signed on their behalf by:
................................................
## **The Reverend Dr Simon Jones**
The notes on pages 17 to 44 form part of these financial statements.
Page 14
## **HYMNS ANCIENT AND MODERN LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01220696**
## **COMPANY STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2020**
|**Note**
**Fixed assets**
Intangible assets
15
Tangible assets
16
Investments
17
**Current assets**
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
**Net current assets**
**Total net assets**
**Charity funds**
Unrestricted funds
22
**Total funds**|**1,176,354**
**718,290**
**1,550,176**
**3,444,820**
**(1,702,629)**|**2020**
**£**
**608,729**
**123,709**
**3,921,643**
**4,654,081**
**1,742,191**
**6,396,272**
**6,396,272**
**6,396,272**|_1,078,010_
_873,299_
_2,244,621_
_4,195,930_
_(1,922,771)_|_2019_
_£_
_514,170_
_136,775_
_3,694,880_
_4,345,825_
_2,273,159_|
|---|---|---|---|---|
|||||_6,618,984_|
|||||_6,618,984_|
|||||_6,618,984_|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on 04 February 2021 and signed on their behalf by:
................................................
## **The Reverend Dr Simon Jones**
The notes on pages 17 to 44 form part of these financial statements.
Page 15
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible and intangible fixed assets
Purchase of investments
**Net cash used in investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 17 to 44 form part of these financial statements|**2020**
**£**
**(425,855)**
**22,472**
**(290,645)**
**(417)**
**(268,590)**
**-**
**(694,445)**
**2,244,621**
**1,550,176**|_2019_
_£_
_290,720_
_26,075_
_(273,396)_
_(387)_
**(247,708)**
**-**
**43,012**
_2,201,609_
_2,244,621_|
|---|---|---|
Page 16
# **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1. General information**
Hymns Ancient and Modern Limited is a company limited by guarantee incorporated in England, registration number 01220696. The registered office is 13a Hellesdon Park Road, Norwich, NR6 5DR.
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The company has elected to apply all amendments to FRS 102, as set out in the Financial Reporting Council's triennial review published in December 2017, and included in Update Bulletin 2 to the Charities SORP (FRS 102), prior to mandatory adoption for accounting periods beginning on or after 1 January 2019.
Hymns Ancient and Modern 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.
The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
## **2.2 Company Status**
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
## **2.3 Going concern**
The Directors consider that the charity has sufficient financial resources to continue for the forseeable future. Current trading is at a level sufficient to support this assumption and therefore deem it appropriate to prepare the financial statements on a going concern basis.
Page 17
# **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **2. Accounting policies (continued)**
## **2.4 Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For all book sales and distribution income is recognised at the point of dispatch.
Periodicals income is recognised on a straight line over the term of the subscription.
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
## **2.6 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.
## **2.7 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the Bank.
Page 18
## **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **2. Accounting policies (continued)**
## **2.8 Intangible assets and amortisation**
Intangible assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
No amortisation is charged on systems under development. On completion, they are transferred to website costs and depreciated in line with the policy stated below.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset, less their estimated residual value, on a straight-line basis over its expected useful life.
The estimated useful lives are as follows:
Amortisation is provided on the following bases:
Website costs - 25 % of cost Computer software - 25 % of cost
## **2.9 Tangible fixed assets and depreciation**
Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, on a straight line basis over their expected useful lives.
Depreciation is provided on the following bases:
Leasehold improvements - 7-20% of cost Fixtures, fittings, office - 20-25% of cost equipment & computer equipment Office equipment - 20-50% of cost Computer equipment - 25-33% of cost
Page 19
# **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **2. Accounting policies (continued)**
## **2.10 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.11 Stocks and work in progress**
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.12 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.13 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.
## **2.14 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
## **2.15 Financial instruments**
The company has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Fixed asset investments are not basic financial instruments and are initially recognised at transaction value and subsequently measured at fair value.
Page 20
## **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **2. Accounting policies (continued)**
## **2.16 Foreign currencies**
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rate of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the last day of the preceeding month.
Exchange gains and losses are recognised in the Statement of financial activities.
## **2.17 Pensions**
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
## **2.18 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statementsfinancial statements.
## **2.19 Redundancy and termination payments**
Redundancy and termination payments are recognised when there is a demonstrable commitment on an individual or group basis that cannot realistically be withdrawn.
Page 21
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **3. Critical accounting estimates and areas of judgement**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
## **Useful economic lives of tangible and intangible assets**
The annual depreciation charge for tangible and intangible assets is sensitive to changes in the useful economic lives and residual values of the assets. These useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 15 and 16 for the carrying amounts of tangible and intangible assets and accounting policies 2.8 and 2.9 for the useful economic lives for each class of assets.
## **Stock provisioning**
The charity sells books and periodicals and is subject to consumer demands and trends. As a result, it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the inventory provision, management considered the nature and condition of stock, as well as applying assumptions around anticipated saleability or finished goods and recoverability of work in progress. See note 18 for the net carrying amount of the stocks and the associated provision.
## **4. Income from donations and legacies**
|Donations
_Total 2019_|**Restricted**
**funds**
**2020**
**£**
44,223
_63,010_|**Total**
**funds**
**2020**
**£**
**44,223**
_63,010_|_Total_
_funds_
_2019_
_£_
_63,010_|
|---|---|---|---|
|||||
Page 22
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **5. Income from charitable activities**
|**Unrestricted**
**funds**
**2020**
**£**
Bookshop
466,954
Books
2,523,614
Distribution
412,010
Church Times
2,395,683
Periodicals
154,101
Major events
41,900
**Total 2020**
5,994,262|**Total**
**funds**
**2020**
**£**
**466,954**
**2,523,614**
**412,010**
**2,395,683**
**154,101**
**41,900**
**5,994,262**|_Total_
_funds_
_2019_
_£_
_578,938_
_2,982,694_
_456,805_
_2,816,818_
_168,348_
_147,301_
_7,150,904_|
|---|---|---|
Of the total income from charitable activities in 2019, £7,150,904 was unrestricted.
## **6. Investment income**
||**Unrestricted**|**Total**|_Total_|
|---|---|---|---|
||**funds**|**funds**|_funds_|
||**2020**|**2020**|_2019_|
||**£**|**£**|_£_|
|Investment income|20,561|**20,561**|_26,075_|
Of the total investment income in 2019, £26,075 was unrestricted.
## **7. Other incoming resources**
|**Unrestricted**
**funds**
**2020**
**£**
Other income
104,434
Small Business grant
21,431
Coronavirus Job Retention Scheme income
-
125,865|**Restricted**
**funds**
**2020**
**£**
-
-
98,324
98,324|**Total**
**funds**
**2020**
**£**
**104,434**
**21,431**
**98,324**
**224,189**|
|---|---|---|
Page 23
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **7. Other incoming resources (continued)**
During the year the Charity received exceptional Government funding as part of the Coronavirus Job Retention Scheme. Funding represents the costs of employing certain staff unable to carry out their duties as a result of the Coronavirus crisis.
||_Unrestricted_|_Total_|
|---|---|---|
||_funds_|_funds_|
||_2019_|_2019_|
||_£_|_£_|
|Other income|_125,426_|_125,426_|
## **8. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2020**
**£**
Governance costs
58,418
Cost of sales
3,458,555
Distribution
334,164
Administrative expenses
2,807,433
Grants payable to approved charities
6,735
Train a Priest
-
Grants of books
24,676
**Total 2020**
6,689,981|**Restricted**
**funds**
**2020**
**£**
-
-
-
-
-
44,223
-
44,223|**Total**
**funds**
**2020**
**£**
**58,418**
**3,458,555**
**334,164**
**2,807,433**
**6,735**
**44,223**
**24,676**
**6,734,204**|
|---|---|---|
Page 24
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **8. Analysis of expenditure on charitable activities (continued)**
## **Summary by fund type (continued)**
|Governance costs
Cost of sales
Distribution
Administrative expenses
Grants payable to approved charities
Train a priest
Grants of books|_Unrestricted_
_funds_
_2019_
_£_
_54,576_
_3,749,408_
_398,842_
_2,739,100_
_57,118_
_-_
_61,269_
_7,060,313_|_Restricted_
_funds_
_2019_
_£_
_-_
_-_
_-_
_-_
_-_
_63,010_
_-_
_63,010_|_Total_
_funds_
_2019_
_£_
_54,576_
_3,749,408_
_398,842_
_2,739,100_
_57,118_
_63,010_
_61,269_
_7,123,323_|
|---|---|---|---|
## **9. Analysis of grants**
|Grants payable to approved charities
Train a priest
Grants of books
Grants payable to approved charities
Train a priest
Grants of books|**Grants to**
**Institutions**
**2020**
**£**
6,735
-
24,676
31,411
_Grants to_
_Institutions_
_2019_
_£_
_57,118_
_-_
_61,269_
_118,387_|**Grants to**
**Individuals**
**2020**
**£**
-
44,223
-
44,223
_Grants to_
_Individuals_
_2019_
_£_
_-_
_63,010_
_-_
_63,010_|**Total**
**funds**
**2020**
**£**
**6,735**
**44,223**
**24,676**
**75,634**|
|---|---|---|---|
||||_Total_
_funds_
_2019_
_£_
_57,118_
_63,010_
_61,269_
_181,397_|
Page 25
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **9. Analysis of grants (continued)**
Grants were paid to the followng approved charities during the year:
|All Souls Orchestra
Anglican Centre in Rome
Anglican Communion Fund Books
Archbishops Anglican Comm Fund
Benefice of Swansea St Peter
Bible Reading Fellowship
Charles Wood Festival of Music & Summer School
Christians Against Poverty
Churches Bookshop
Dr Clarke Young Organ Scholars
Ipswich Deanery
Ipswich Deanery - books
Lichfield Cathedral
Lifestreams Churches
London Fest Cont Church Music
Norwich Youth for Christ
Oak Church Stevenage
Oddments Theatre
One Sound
Oundle Organist
The Oxford Pastorate
Ripton College
RSCM South Africa
Sansara Choir
Societas Liturgica (UK)
Norwich Cathedral
St Andrew's Church, Spratton
St Edmundsbury Cathedral
St John the Divine, Kennington
St John The Evangelist
St Martin-in-the-Fields Trust
Winchester School Mission - books|**2020**
**£**
**(2,000)**
**5,000**
**(2,000)**
**-**
**-**
**-**
**-**
**175**
**-**
**-**
**2,000**
**2,000**
**-**
**-**
**-**
**2,000**
**-**
**1,900**
**-**
**-**
**-**
**-**
**-**
**(1,000)**
**-**
**(3,000)**
**(340)**
**-**
**-**
**-**
**-**
**2,000**
**6,735**|_2019_
_£_
_2,000_
_7,500_
_-_
_6,500_
_160_
_4,000_
_1,300_
_4,033_
_830_
_3,500_
_-_
_-_
_3,000_
_1,500_
_1,000_
_-_
_1,000_
_-_
_1,000_
_1,095_
_2,000_
_1,000_
_1,500_
_1,000_
_3,800_
_-_
_-_
_3,000_
_3,000_
_400_
_3,000_
_-_
_57,118_|
|---|---|---|
Page 26
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
Grants of books totalling £24,676 (2019: £61,269) were made to 95 organisations (2019: 190). These grants are typically in the region of £270.
Negative grants are amounts that were awarded in previous years, but that were not claimed and have therefore expired.
## **10. Governance costs**
|**Unrestricted**
**funds**
**2020**
**£**
Auditors' remuneration
13,800
Trustees' remuneration including national insurance
38,746
Trustees' reimbursed expenses for attendance at meetings and meeting
costs
5,872
58,418
_Unrestricted_
_funds_
_2019_
_£_
Auditors' remuneration
_12,805_
Trustees' remuneration including national insurance
_30,920_
Trustees' reimbursed expenses for attendance at meetings and meeting
costs
_10,851_
_54,576_|**Total**
**funds**
**2020**
**£**
**13,800**
**38,746**
**5,872**
**58,418**|
|---|---|
||_Total_
_funds_
_2019_
_£_
_12,805_
_30,920_
_10,851_
_54,576_|
Page 27
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **11. Analysis of expenditure by activities**
|Governance
Cost of sales
Distribution
Administrative expenses
Grants payable to approved charities
Train a Priest
Grant of books|**Activities**
**undertaken**
**directly**
**2020**
**£**
-
3,458,555
334,164
-
-
-
-
3,792,719|**Grant**
**funding of**
**activities**
**2020**
**£**
-
-
-
-
6,735
44,223
24,676
75,634|**Support**
**costs**
**2020**
**£**
58,418
-
-
2,807,433
-
-
-
2,865,851|**Total**
**funds**
**2020**
**£**
**58,418**
**3,458,555**
**334,164**
**2,807,433**
**6,735**
**44,223**
**24,676**
**6,734,204**|
|---|---|---|---|---|
|Governance
Cost of sales
Distribution
Administrative expenses
Grants payable to approved charities
Train a priest
Grant of books|_Activities_
_undertaken_
_directly_
_2019_
_£_
_-_
_3,749,408_
_398,842_
_-_
_-_
_-_
_-_
_4,148,250_|_Grant_
_funding of_
_activities_
_2019_
_£_
_-_
_-_
_-_
_-_
_57,118_
_63,010_
_61,269_
_181,397_|_Support_
_costs_
_2019_
_£_
_54,576_
_-_
_-_
_2,739,100_
_-_
_-_
_-_
_2,793,676_|_Total_
_funds_
_2019_
_£_
_54,576_
_3,749,408_
_398,842_
_2,739,100_
_57,118_
_63,010_
_61,269_
_7,123,323_|
|---|---|---|---|---|
## **12. Auditors' remuneration**
The auditors' remuneration amounts to an auditor fee of _£_ 12,600 _(2019 - £12,300)_ , and other assurance services of _£_ 1,200 ( _2019_ - _£505_ ).
Page 28
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **13. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|**Group**
**2020**
**£**
**1,922,584**
**182,563**
**183,808**
**2,288,955**|_Group_
_2019_
_£_
_1,912,617_
_176,739_
_186,602_
_2,275,958_|**Company**
**2020**
**£**
**1,922,584**
**182,563**
**183,808**
**2,288,955**|_Company_
_2019_
_£_
_1,912,617_
_176,739_
_186,602_|
|---|---|---|---|---|
|||||_2,275,958_|
The average number of persons employed by the company during the year was as follows:
|**Group**|_Group_|
|---|---|
|**2020**|_2019_|
|**No.**|_No._|
|**66**|_66_|
Page 29
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **13. Staff costs (continued)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**Group**|_Group_|
|---|---|---|
||**2020**|_2019_|
||**No.**|_No._|
|In the band £60,001 - £70,000|**3**|_2_|
|In the band £120,001 - £130,000|**-**|_1_|
|In the band £130,001 - £140,000|||
||**1**|_-_|
Employer pension contributions totalling £32,617 (2019 - £25,971) were made in the year for the provision of a defined contribution scheme for the higher paid employees.
Key management personnel consists of the Senior Management Team (as disclosed on page 3) and the Trustees. The total remuneration payable to these 13 key personnel members including employers national insurance (2019 - 13) was £689,269 (2019 - £651,353).
Page 30
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **14. Trustees' remuneration and expenses**
During the year ended 30 September 2020, expenses totalling _£_ 5,920 were reimbursed or paid directly to _5_ Trustees _(2019 - £10,747 to 5 Trustees)_ .
During the year 2 (2019: 2) Trustees were paid royalties and other fees totalling £532 (2019: £821).
The Memorandum and Articles of Association authorise the reasonable and proper remuneration of the Council of Management. Authorised remuneration for the period was as follows.
|The Reverend Dr Simon Jones
The Right Reverend Stephen Platten
Christopher Adams
Helen Couldrey
Ben Andradi
The Very Reverend Jane Hedges|**2020**
**£**
**9,773**
**3,662**
**7,344**
**7,344**
**4,896**
**4,896**
**37,915**|_2019_
_£_
_7,344_
_10,987_
_7,344_
_4,896_
_-_
_-_
_30,571_|
|---|---|---|
Page 31
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **15. Intangible assets**
## **Group and Company**
|**Cost**
At 1 October 2019
Additions
Disposals
Transfers
At 30 September 2020
**Amortisation**
At 1 October 2019
Charge for the year
On disposals
At 30 September 2020
**Net book value**
At 30 September 2020
_At 30 September 2019_|**Website**
**£**
**917,556**
**27,875**
**(20,553)**
**45,415**
**970,293**
**614,966**
**120,174**
**(20,553)**
**714,587**
**255,706**
_302,590_|**Systems**
**being**
**developed**
**£**
**164,664**
**210,113**
**-**
**(335,369)**
**39,408**
**-**
**-**
**-**
**-**
**39,408**
_164,664_|**Computer**
**software**
**£**
**241,927**
**-**
**(121,466)**
**289,954**
**410,415**
**195,011**
**23,255**
**-**
**96,800**
**313,615**
_46,916_|**Total**
**£**
**1,324,147**
**237,988**
**(142,019)**
**-**
**1,420,116**
**809,977**
**143,429**
**(20,553)**
**811,387**
**608,729**
_514,170_|
|---|---|---|---|---|
Page 32
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **16. Tangible fixed assets**
## **Group and Company**
|**Cost or valuation**
At 1 October 2019
Additions
Disposals
At 30 September 2020
**Depreciation**
At 1 October 2019
Charge for the year
On disposals
At 30 September 2020
**Net book value**
At 30 September 2020
_At 30 September 2019_|**Long-term**
**leasehold**
**property**
**£**
**213,784**
**783**
**-**
**214,567**
**148,688**
**21,343**
**-**
**170,031**
**44,536**
_65,096_|**Fixtures and**
**fittings**
**£**
**110,197**
**552**
**-**
**110,749**
**87,926**
**9,357**
**-**
**97,283**
**13,466**
_22,271_|**Office**
**equipment**
**£**
**136,853**
**51,322**
**(3,667)**
**184,508**
**87,445**
**35,023**
**(3,667)**
**118,801**
**65,707**
_49,408_|**Total**
**£**
**460,834**
**52,657**
**(3,667)**
**509,824**
**324,059**
**65,723**
**(3,667)**
**386,115**
**123,709**
_136,775_|
|---|---|---|---|---|
Page 33
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **17. Fixed asset investments**
|**Group**
**Cost or valuation**
At 1 October 2019
Additions
Revaluations
**At 30 September 2020**
**Market value**
**At 30 September 2020**
_At 30 September 2019_|**Listed**
**investments**
**£**
**3,664,226**
**400**
**226,346**
**3,890,972**
**3,890,972**
_3,664,226_|**Other fixed**
**asset**
**investments**
**£**
**8,654**
**17**
**-**
**8,671**
**8,671**
_8,654_|**Total**
**£**
**3,672,880**
**417**
**226,346**|
|---|---|---|---|
||||**3,899,643**|
|||||
||||**3,899,643**|
||||_3,672,880_|
Page 34
## **HYMNS ANCIENT AND MODERN LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **17. Fixed asset investments (continued)**
The historical cost of listed investments is £3,150,620 (2019: £3,150,220).
The historical cost of other fixed asset investments is £8,644 (2019: £8,627).
All the fixed asset investments are held in the UK.
|**Company**
**Cost or valuation**
At 1 October 2019
Additions
Revaluations
**At 30 September 2020**
**Market value**
**At 30 September 2020**
_At 30 September 2019_|**Investments**
**in**
**subsidiary**
**companies**
**£**
**22,000**
**-**
**-**
**22,000**
**22,000**
_22,000_|**Listed**
**investments**
**£**
**3,664,226**
**400**
**226,346**
**3,890,972**
**3,890,972**
_3,664,226_|**Other fixed**
**asset**
**investments**
**£**
**8,654**
**17**
**-**
**8,671**
**8,671**
_8,654_|**Total**
**£**
**3,694,880**
**417**
**226,346**|
|---|---|---|---|---|
|||||**3,921,643**|
||||||
|||||**3,921,643**|
|||||_3,694,880_|
All the fixed asset investments are held in the UK.
Included within other investments at 30 September 2020 are shares in group undertakings of £22,000 (2019: £22,000). Details of the subsidiary company are included in note 31.
Listed securities are shown at market value on the balance sheet date. Unlisted securities are held at cost less impairment.
## **Group material investments**
The following investments are considered to be material:
||**2020**|2019|
|---|---|---|
||**£**|£|
|Sarasin Endowment Fund Class A (Acc)|**3,890,972**|3,664,226|
Page 35
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **18. Stocks**
|Packaging
Work in progress
Finished goods and goods for resale|**Group**
**2020**
**£**
**7,127**
**150,034**
**1,019,193**
**1,176,354**|_Group_
_2019_
_£_
_8,206_
_125,746_
_944,058_
_1,078,010_|**Company**
**2020**
**£**
**7,127**
**150,034**
**1,019,193**
**1,176,354**|_Company_
_2019_
_£_
_8,206_
_125,746_
_944,058_|
|---|---|---|---|---|
|||||_1,078,010_|
Stock recognised in cost of sales during the year as an expense was £764,638 (2019: £926,647).
## **19. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**Group**
**2020**
**£**
**419,589**
**103,373**
**195,328**
**718,290**|_Group_
_2019_
_£_
_564,013_
_152,709_
_156,577_
_873,299_|**Company**
**2020**
**£**
**419,589**
**103,373**
**195,328**
**718,290**|_Company_
_2019_
_£_
_564,013_
_152,709_
_156,577_|
|---|---|---|---|---|
|||||_873,299_|
Page 36
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **20. Creditors: Amounts falling due within one year**
|Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 October 2019
Resources deferred during the year
Amounts released from previous periods|**Group**
**2020**
**£**
**297,146**
**-**
**184,824**
**538,880**
**659,444**
**1,680,294**
**Group**
**2020**
**£**
**630,589**
**638,364**
**(630,589)**
**638,364**|_Group_
_2019_
_£_
_402,127_
_-_
_108,094_
_759,626_
_630,589_
_1,900,436_
_Group_
_2019_
_£_
_646,757_
_630,589_
_(646,757)_
_630,589_|**Company**
**2020**
**£**
**297,146**
**22,335**
**184,824**
**538,880**
**659,444**
**1,702,629**
**Company**
**2020**
**£**
**630,589**
**638,364**
**(630,589)**
**638,364**|_Company_
_2019_
_£_
_402,127_
_22,335_
_108,094_
_759,626_
_630,589_
_1,922,771_
_Company_
_2019_
_£_
_646,757_
_630,589_
_(646,757)_
_630,589_|
|---|---|---|---|---|
Deferred income is made up of subscription fees for various periodicals.
Page 37
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **21. Financial instruments**
|**Financial assets**
Financial assets measured at fair value through income and expenditure
Financial assets that are debt instruments measured at amortised cost
**Financial liabilities**
Financial liabilities measured at amortised cost|**Group**
**2020**
**£**
**3,899,643**
**510,334**
**4,409,977**
**745,044**|_Group_
_2019_
_£_
_3,664,226_
_716,722_
_4,380,948_
_1,161,753_|
|---|---|---|
Financial assets measured at fair value through income and expenditure comprise listed fixed asset investments. The fair value is taken as the market value of the investments based on the portfolio valuation report obtained from Sarasin & Partners at the balance sheet date.
Financial assets measured at amortised cost comprise trade and other debtors.
Financial liabilities measured at amortised cost comprise trade and other creditors.
Page 38
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **22. Statement of funds**
## **Statement of funds - current year**
|**Balance at 1**
**October**
**2019**
**£**
**Unrestricted**
**funds**
General Funds
**6,619,319**
**Restricted**
**funds**
Train a Priest
**-**
Government
Grants
**-**
**-**
**Total of funds**
**6,619,319**|**Income**
**£**
**Expenditure**
**£**
**6,110,633**
**(6,659,926)**
**44,223**
**(44,223)**
**98,324**
**-**
**142,547**
**(44,223)**
**6,253,180**
**(6,704,149)**|**Transfers**
**in/out**
**£**
**98,324**
**-**
**(98,324)**
**(98,324)**
**-**|**Gains/**
**(Losses)**
**£**
**228,257**
**-**
**-**
**-**
**228,257**|**Balance at**
**30**
**September**
**2020**
**£**
**6,396,607**|
|---|---|---|---|---|
|||||**-**
**-**
**-**|
|||||**6,396,607**|
Page 39
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **22. Statement of funds (continued)**
## **Statement of funds - prior year**
|_Balance at_
_1 October_
_2018_
_£_
_Income_
_£_
**Unrestricted funds**
General Funds
_6,116,591_
_7,302,405_
**Restricted funds**
Train a Priest
_-_
_63,010_
**Total of funds**
_6,116,591_
_7,365,415_
**23.**
**Summary of funds**
**Summary of funds - current year**
**Balance at 1**
**October**
**2019**
**£**
**Income**
**£**
**Expenditure**
**£**
General funds
**6,619,319**
**6,110,633**
**(6,659,926)**
Restricted funds
**-**
**142,547**
**(44,223)**
**6,619,319**
**6,253,180**
**(6,704,149)**|_Expenditure_
_£_
_(7,060,313)_
_(63,010)_
_(7,123,323)_
**Transfers**
**in/out**
**£**
**98,324**
**(98,324)**
**-**|_Gains/_
_(Losses)_
_£_
_260,636_
_-_
_260,636_
**Gains/**
**(Losses)**
**£**
**228,257**
**-**
**228,257**|_Balance at_
_30_
_September_
_2019_
_£_
_6,619,319_|
|---|---|---|---|
||||_-_|
||||_6,619,319_|
||||**Balance at**
**30**
**September**
**2020**
**£**
**6,396,607**
**-**
**6,396,607**|
Page 40
## **HYMNS ANCIENT AND MODERN LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **23. Summary of funds (continued)**
## **Summary of funds - prior year**
|General funds
Restricted funds|_Balance at_
_1 October_
_2018_
_£_
_6,116,591_
_-_
_6,116,591_|_Income_
_£_
_7,302,405_
_63,010_
_7,365,415_|_Expenditure_
_£_
_(7,060,313)_
_(63,010)_
_(7,123,323)_|_Gains/_
_(Losses)_
_£_
_260,636_
_-_
_260,636_|_Balance at_
_30_
_September_
_2019_
_£_
_6,619,319_
_-_
_6,619,319_|
|---|---|---|---|---|---|
## **24. Analysis of net assets between funds**
## **Analysis of net assets between funds - current period**
|**Unrestricted**
**funds**
**2020**
**£**
Tangible fixed assets
123,709
Intangible fixed assets
608,729
Fixed asset investments
3,899,643
Current assets
3,444,820
Creditors due within one year
(1,680,294)
**Total**
6,396,607|**Total**
**funds**
**2020**
**£**
**123,709**
**608,729**
**3,899,643**
**3,444,820**
**(1,680,294)**
**6,396,607**|
|---|---|
Page 41
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **24. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior period**
|Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|_Unrestricted_
_funds_
_2019_
_£_
136,775
514,170
3,672,880
4,195,930
(1,900,436)
6,619,319|_Total_
_funds_
_2019_
_£_
_136,775_
_514,170_
_3,672,880_
_4,195,930_
_(1,900,436)_
_6,619,319_|
|---|---|---|
## **25. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the period (as per Statement of Financial
Activities)
**Adjustments for:**
Depreciation and amortisation charges
Unrealised gains on investments
Dividends, interests and rents from investments
Increase in stocks
Decrease in debtors
Decrease in creditors
**Net cash provided by/(used in) operating activities**|**Group**
**2020**
**£**
**(222,712)**
**209,152**
**(226,346)**
**(22,472)**
**(98,344)**
**155,009**
**(220,142)**
**(425,855)**|_Group_
_2019_
_£_
_502,728_
_186,082_
_(260,636)_
_(26,075)_
_(149,271)_
_105,115_
_(67,223)_
_290,720_|
|---|---|---|
Page 42
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **26. Analysis of cash and cash equivalents**
|Cash in hand
**Total cash and cash equivalents**|**Group**
**2020**
**£**
**1,550,176**
**1,550,176**|_Group_
_2019_
_£_
_2,244,621_|
|---|---|---|
|||_2,244,621_|
## **27. Analysis of changes in net debt**
|Cash at bank and in hand|**At 1**
**October**
**2019**
**£**
**2,244,621**
**2,244,621**|**Cash flows**
**£**
**(694,445)**
**(694,445)**|**At 30**
**September**
**2020**
**£**
**1,550,176**
**1,550,176**|
|---|---|---|---|
## **28. Pension commitments**
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £183,808 (2019 - £186,602). Contributions totalling £19,878 (2019 - £20,487) were payable to the fund at the balance sheet date and are included in creditors.
## **29. Operating lease commitments**
At 30 September 2020 the Group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|**Amounts payable for leases on land and**
**buildings and other leases:**
Within 1 year
In years 2 to 5
After more than 5 years|**Group**
**2020**
**£**
**320,390**
**697,389**
**-**
**1,017,779**|_Group_
_2019_
_£_
_348,515_
_902,042_
_161,500_
_1,412,057_|**Company**
**2020**
**£**
**320,390**
**697,389**
**-**
**1,017,779**|_Company_
_2019_
_£_
_348,515_
_902,042_
_161,500_|
|---|---|---|---|---|
|||||_1,412,057_|
Page 43
**(A company limited by guarantee)**
## **HYMNS ANCIENT AND MODERN LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **30. Related party transactions**
During the year £6,350 (2019 - £6,350) was received for services provided to The English Hymnal Company Limited a company in which Hymns Ancient and Modern Limited has a minority shareholding.
## **31. Principal subsidiaries**
The following was a subsidiary undertaking of the company:
|**Name**|**Company**|**Holding**|**Included in**|
|---|---|---|---|
||**number**||**consolidation**|
|G.J.Palmer and Sons Limited|00291335|100%|Yes|
|The financial results of the subsidiary for the period were:||||
|**Name**|||**Net assets**|
||||**£**|
|G.J.Palmer and Sons Limited|||**22,335**|
Page 44