The Everard Foundation Annual Report & Financial Stateinents For the Year Ended 5th April 2021 The Everard Foulldation Page I Re ort for the Ye*r Ended 5th A ril 2021 Legal and Admimistratioo D¢tsii5 The trustees are pleased to present their report together with the financial statements of the chaJity for the ywar ended 5th April 2021. The financial aatements have been prepared in accordance with the accounting policies set out in the note% to the the aecounts and comply with the charitys governing docum¢nL The Charities Act ?01 l #rtd A¢¢ounting 2nd Repotcing by Charities.. Statement of Recollunended Prartire applicable to chatilies preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ire13nd published in October 2019. The Trustees acting throughout the year. who were not remunerated and received no expenses, w￿e.. Mr. Rich￿ A.S. EVe￿d Mrs. s￿e￿a A. Ri¢haTds Mr. Simon J. Atkinson Mrs. CharlotEe lone Vowles Mr. Atkinson is, however, a pther in CutTey & Co LLP. 33 Queen Annt Stree( Lnndon WIG 9HY, solicitors to the trust who provided secre￿721, accountancy and tax services charging an annual fee in this cOm]ectio￿ details of which appear in the financial ￿&ten￿nts. The inveskn)ent pDrtfolio managers are Smith & WIll￿￿￿SOn Investmellt Manag¢menL 25 Moorgate, London EC2R 6AY. The charitys bankers are N&tWest Plq Leicester City. The independent examiner is Ailsa Faxey CA. of Millbank Financial Serviees Ltd, Fourth Floor. 10 Bnrton Stree¢ Londottl WIJ 6PX. Strnctur4 Goveran¢e MaD*gemenl The charity was established as a grant making trust by Deed of Trust dated I lth October 1976 and is registered with the Charity Commission, No.. 272248. The charitys address is 33 Queen Anne Streei, London WIG 9HY. The charity is controlled by a b0￿d of trustees who manage aspects of the trust's affairs and in whom vests the p)wer to appoint new tr￿tees. The training needs of the axe reviewed on an annual basis, and existing tr￿teeS are provided with training as and when required. The traÉning costs incurred in the current year were £Nil (2019120= £Nil). They have received appropriate bTi¢fing on their responsibilities under the law rel￿1n£ to ¢harities and their duty to ensure that their charitable activities are for the public ￿nefIt. The selection of furtsre trustees will have regard to the skil]s, knowledge and experi¢n¢e need¢d for the effective administration of the charity. Any new trustees will be provided Mqth copies of the Charity Commission's guidance lo trustees and given an tntroduction tt> ihe activities of the charity by the existing board. R¢l•t¢d Partles No transactions took place with related parties although expenses are charged for the services provided by CU￿eY & Co LLP as disclosed above. Tbe Ever4rd Foundation Page 2 Re ortfortbt Y￿r Ended 5th A ril 2021 Rlsk Management The major risks io which the charity is theoretically exposed are a significant downturn in profitability and thus dividen(ts declared on ihe tNstees' significant shareholding in Everard Brewery Ltd ("EB Ltd"), a privately ow)ed company> and the incompetence of its investment managers and the fraud or negligence of the trustees or their bankers, agents or nominees. The tTVSt¢es believe that by d¢legaling investnxnt management to recognised charity inve5tsn¢nt profe55iona15 and mon¥toring their perforrnance, they have established the efftttive systems to mitigaie these rigks. The trustees also believe that it remains in the trusts best int¢r¢M to continue to hold shares in EB Ltd in the expettation of a rvasonable dividend income gtr¢am deriving from that shareholding. The trugtees n￿Int￿n close links with the Board of Dire¢tors of EB Lid and remain ¢onfid¢nt in th¢ Man￿¢Meftt of th¢ ¢ompany. Th¢ trust¢¢s, having assessed th¢s¢ Tisk5, ar¢ satisfi¢d that 5ySterns ar¢ in plar¢ to mitigat¢ the CP￿rity$ exposure thereto. The TTUSteeg have satisficd thernselves thatthe trust is a going concern and has adequate resources to ¢ontinue in operational existence for the foreseeable fufure. The charitable activiti￿ ar¢ fi]nd¢d by the investment portfolio and although Covid-19 has had a negative impact on this. the wrtfolio has sufficienl value to support continued grant making. Objectivu and Attiviti The ¢l]aritiy's obJ￿ts provide that: "Subject to any appoinlment the Trustees should hold the Trust Fund uwn Trustto pay or apply the income thereof to such charÉtable foundations and for such ehaTitable purposes as the Trustees in their discretion sha]1 from time io lime think fit" In considering how to achieve these objectives the tNstees have had regard to the guidance on public b¢n¢fit issued by th¢ Charity Commission. The objective of the trust is to seek to obtain a sustainable return from their investment ptsrtfolio and in partieular an IncoTr￿ increasing at I£￿t in line inflation over the medium trmL The clwity is reliant on T¢ceivÉng neither additional funding from donors nor any particular level of income from its investments. The tTustees nom]ally only make grants or loans io other regigtered eh8Jities in in which the trustees have an interest, in particular. the advancement of eitizenship or community d¢velopTnent, ¢nvironmental protKtion and improv¢mEnk and the r¢li¢f of those in need in and around the county of Leicestersllire. The %OFe of their giving is deteTsnined only by the extent of their resources- it is not otheTwise restrict¢d either geographically, or by the type of activity carried on by prospective beneficiaries or applicants. The trustees continue to make grants in support of chayitable organisations in furtherance ofthe ¢haritys obj¢th foT the publÈ¢ benefit. Publie Beneftt The tTUStees ¢onfimi that they have complied with the duty in section 17 of the Charities Act 2011 and hav¢ ref¢rred to ihe guid8m¢e ¢ontsined in th¢ Charity Commission's general gutdance on public b¢nefit when reviewing the charitys al￿￿ and objectives and in planning future activities and setting the donations policy for the year. The benefit th* arise5 is the provision of fimding to organisations that demoDstrate chaTitsble puryose. The Everard Foundatlon Page 3 ADDual Re rt f r the Year Ended 5th A ri12021 Aehi¢v¢meMts and Performao¢e During the course of the year the trust made 8 grant5 totalling £69,19) a% set out in note 5 to these awounts. The trustees congider that their principa] objectives are being achieved. The trustees are ple&8ed with the progress made in the fitmncial year ended 5th April 2021 and look fonvard to expanding their work with many other Charities in the yeaTS to co￿￿. Fitt#D¢i*I Revi¢w On 5th April 2021 the inv¢stment portfolio was worth £17,233,060 (2019120.. £16,700249) and in the year ending 5th April 2021 the inveslment income was £78,880 (2019120.. £128,90}. The expenditure on charitsble aetivities totalled £76,980 {2019120: £118,746). The trusttts recognise that no dividends NTrtre generated from EB Ltd in 2020121. and the only income was generated from the tNstees' portfolio of invesm)ents managed by Smith & Williamson Investment Management Limited. The trustees are satisfied that the Charty's assets a available and adequate to meet its obligations. Fixed Asset lTrves¢meThts Investments are a form of basic finan¢ial instrument and are initially wognised it their translrtion va]ue and subsequently mcasured at their fair value as at the bklance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The main forn) of financial risk faced bythe eharity ts that of volatility in equity markets and investhient m2Tkds due io wider economic conditions. the attitrjde of investors to inveskn)ent risL al￿ chang¢s s¢ntiTn¢nt ¢0ll¢¢Tnin￿ equilies and wtthin partiLular sectors or sub sectors. Realised Gains 2nd Losses All gains and losses are taken to the Statement of Financial Activities as they ￿lSe. Realised wain5 and losses on investments are calculated ￿ the difference between sales proceeds and their opening ￿ryin￿T value or their purch&8e value ifacquired Su￿eqUertt to the first day of th¢ financial yeaF. Unrealised gains and losses alt calculated as the difference between the fair valu¢ atthe year end and their caTrying value. Realised and unrealised investment gains and1055eS are combined in the Statement of Financial Activities. Employees The charity employs no staff. Investment Policy Under the Trust Deed the trusttts are empckwered io invest in any type of inVes￿ent Nvhich th¢ truste¢s could make if th¢y absolthely and b¢n¢fi¢ially ¢ntitl¢d. The Investsnent Policy is n￿nitored by regular investment reports annual meetings the Invesknent Manager. The trustees remain S￿Isfied with the perforn￿nCe of iheir Inv¢stment mana￿er and that the tr￿9tees, mandate remains appropriate. A breakdown of the investn*nts held at the year ended 5th April 2021 c8m be seen on page I l. Reserves Policy It is the tntstees, policy tr) distribute approximately one ye8f5 income in the wws¢ of ¢ach fInan¢i￿ year and io refain a reseTV¢ only sufficient to be able to ￿pOnd expeditiously and when appropriate to urgent appea]s. Atthe Balance Sheet d*e the UTtrestricted ttserves amounted to £17,465,069. PlaDS for ¢be Future The trustees intend that ihe pr￿nCipal objectives should be pursued in petyetuity. Pag¢ 4 The Everard FoundatiDD r Ended 5th A ril 2021 Sts*tmeDt of Trustee5' Responsibilities The trustees are responssble for preparing the trustees, report and the financia] ststen%nts in accordance with appli¢abl¢ law and regulations. The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial y&qr in accordance with United Kingdom Gener211y Accepted Aecounting Practice {United KingdOmAC￿untsng Stsffldar￿ and applicable regulations). Under that law the trustees must not appove the financial Slaten￿nts unless they are satisfied that they give a mie and fair vÉew of the state of affairs of the charity and of the incoming re90ur¢es and application of [￿ourceS of the ¢harty for that period. In preparing these finaTLcial statements, the InJ5tees 3re required to.. select suitable accounting policies and then apply them eonsistently. obsetve the methods and principles in the Charities SORP (FRS 102) make judgements and estimates that are rwonable and prudent; state whether applicable accounting standards have been followed, subject to any m8terial departures disclosed and explained in the financial statements" aELd prepare the financia] statements on the going concern basis unless it is inappropriale to pre%urne that the ch&rity will continue in busines5. The trustees are responslble for keeping adequate accounting records which are sufficient to show and explain th¢ charity5 transactiow and disclose with reasonabl¢ accuracy at any time the finan¢ia] position of the d]arity and enable them to enSUTe that the financial statements comply the Ch￿StieS Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisiow of the trust deed. They are also responsible for safeguarding the ￿Sets of ihe charity and hence for taking r&%onable Steps for the prevention amd detection of fraud and other irregularities. S J Atkinson on E*half of the trustees 3rd d 2022 and signed on thetr behalf by: Trustee Page 7 The Everard Foundation Notes to tbe Financial Statements for the Ye&r En 5th A ril 2021 l A¢¢ountlllg Pollc5es a) Basis of financial ststements preparatio The financial statements of the charity. which is a public benefit entity, hav¢ b¢en prepar in accordance wilh the Charilies SORP {FRS 102) 'A¢eounting and Reporting by Charities". Statement of Recommended Pra￿1¢¢ applicable to chariti¢s pr¢paring their ccountg in AceoTdance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102} {effe¢tive l January 2015),, the Financial Reporting Standard applicabl¢ in the Uniied Kingdom 2nd Republic of Ireland and the Charities Act 2011. The financial statements hav¢ been prepared und¢r the historical cost convention. The financial statements have ken prepared to give a'tru¢ and fair, vi¢w and have depthed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to give a'true and fair, view. This departure has involved following Accountang and Reporting by Charities preparing their ac¢ounts in a¢cordanee with ihe Financial Reporting Standard applicable in Éhe UK and Republic of Ireland (FRS 102) issued in October 2019 rnther than the Accounting and Reporting by CharÈties'. Ststement of Recommended Practi¢¢ ¢ffe¢tive from 1st April 2005 which has since been removed. b) Naturt of F￿Trds All fijnds held are unrestricted and the trustees are free to use them in a¢¢ordan¢e with the charitable obj¢Gts. c) Fixed Asset Inv&stments Investments are ststed at market value at the b212nce sheet date. Overse&s Investments are translated into sterling at the rates ruling at ihe year ¢nd. The Statement of Financial Activities (SOFA) includes th¢ n¢t ￿1n5 and losses on revaluation and disposals throughout the year. d) Investment llleomt Investment income is accounted for when receivable and is ststed gross of any reclaimable taxation relief. e} Raising FuDds Expenditure is accounted for on an accrual basis and has been c1￿57f]ed under headings that aggr¢gate all costs related to that category and are shown in the notes to the financial stat¢ments. D Charitsble Gr8Dts Grants payable are recognised the SOFA when they are approved by the trustees and the re¢ipi¢nt has been informed of the amount to be paid. Foreign Currenci£q Transactions denominated in a foTeign currency are translated into sterling at the rate of exchange ruling at the date of th¢ transa¢tion. At the balance sheet dats monetary assets and liabiliti¢5 d¢norninat¢d 3 foreign Currency are translated at th¢ rdte ruling at that d￿e. All exchange differences are dealt with in the SOFA. 2 Remuneration of Trustees In ihe fmancial year to 5th April 2021 the trustees did not receive any remuneTation (2019120.. £Nil) but did r¢c¢ive reimbursement for expenses incurred in the year. Page 8 The Everard Foundation Notes to the Financial Stalemettts for Ihe Year Ellded 5th A ril 2021 2021 2020 3 1hves*meDt Income UK Dividends - quoted UK Dividends - unquoted Unit Trust Income Fixed interest stock Prop¢ty inwm¢ Overseas income Overseag WithholdÈng tax repajrynent Bank Int¢r¢st 21,410 35,163 47,112 760 3,267 4,269 37,325 614 460 £128,970 7,252 1,970 3,428 44,229 67 £78,356 4 Charitable Activities Direct Support Costs Costs (see note 5) {see note 6) Total Charitsble expenditure £69,190 7,791 76,981 5 Direct Costs The Charity undertook no direct charitable ￿tiVItieS but awarded grants to a number of institutions in furth¢rance of its charitable objectives. These are as follows: 2021 2020 1st Queens Dragoon Guards Regimentsl Trust 2nd 60th Leieesterghire Scouts Age Concern Leicestershi￿ & Rudand Action on Hearing Loss ABF The Soldier's Charity Age UK Leicester & Rutland All Saints Chur¢h, Rotherby Boost Brainsttvsl British Heart Foundation Duke of Edinburgh's Award clf 2,000 500 50,000 20,000 900 400 2,500 500 50.500 5,000 5,000 5,000 1,000 80,800 62.500 Page 9 The Everard Foundalio Notes to the Finaneial Statemen 5thA Year Ended 2021 2020 S Direet Costs tonl. Balance b/f Harborough Distri¢t Children and Yound People's Charity Lei¢¢stershire Historic Churches Trusl Leicestershire Search & Rescu¢ LCC Little Troopers LNR AC Ski Cadet Marie Curie National Charity for Trduma Prostsid Rotary Club of Oadby Scout Association SportEbility Tennis Leicester Charitable Trust UK Veterans Hearing Foundation Warning Zone {L¢i¢ester & Rutland Crimebeat) Young Enterprise Young Leicestershire Ltd 62,500 80,800 500 250 1,000 500 2,000 400 500 1,000 1,370 500 250 1,000 500 16,000 5,0(N) 1.350 1,000 500 £108,170 £ 69,190 Alla]ysis of grants made Grants to institutions Grants to Indi￿d￿al$ Total Advan¢ement of: ¢ducation religion health or the saving of lives citizenship or community dev¢lopment the arts, culture. heritage or science environmental protection or improvement the reli¢f of those in need animal welfare promotion of efficiency of the arnied force8 Any other charitable purposes 17,690 1,000 17,690 1,000 50,500 50,500 £69,190 £0 £69,190 Page 10 The Evenrd Foulldatioll Notes to the Fill#n¢Éal Statements for the YeAr 5thA ri12021 2021 2020 6 Support Costs Independent Examination fee Bank charges LEI Registration fe¢ Legal and Professional fees 368 25 72 7,326 £7,791 689 63 72 9,753 £10,577 7 Expellditure on Raising Funds 2021 2020 Investment management fees £20,004 £20,609 8 Employees There are no employees so consequently no stsff costs have been incurred. Page 11 The Everard F uttdation to the Fi￿#0¢191 Statements for the Year Ended 5thA ril 2021 5.4L2021 Mark 9 Investments beld at 5th April 2021 26,311 438 10,020 3,300 1,130 13.180 300 375 1.550 618 79,000 305 303,947 1,010 93,435 780 3.380 30,000 31240 66.300 7200 20200 3,748 28,41K) 21290 4,640 6,950 4,600 5,190 830 950 495 1,555 7.350 31,900 440 475 227 38,650 16,570 42.663 626 3,430 15,000 29,000 3,160 725 31,076 Auwentum FiTht￿h PLC Ip Ord Astrazeneca plc Ord USSO.25 Aviva plc 25p Ord Bl8okroek Smaller Companies Trust 25p Ord Blackstone Group LP Comrnon Units BP plc ord USSO.25 CG Portfolio Fund Real Rettm'A' £ CG Portfolio Fund plc Dollar Hedged £ Dis CRH Ord Euro O.)2 Croda InteTn*tional 10.609756p Ord DP Aircraft l Ltd Otd Prev NPV Edgewood L Select Us Select Growth I Z US$ Everards Brewery Ltd £1 ord Experian ple Ord USSO.10 Fair Oaks Income Fund Ltd. Ord NPV (?017) Findlay Park Fund5 plc Amtrion £ Hedged Dist Fidelity Inv Services {UK) Ltd Fidelity Asi& W £ GCP Student Living plc Ip Ord Hem)es Inv ManageTnent Global EmeTging Markets J2 In¢ £ HBC 11.400/0 FTSEIESTX Def Autwa]12414r2026 Informa ple 0.￿)Ip Ord JPMorgan Asset Management UK Ltd Japan C Aec Jupiter U.T. Managers Europeala Z Inc LgThd Global Active Funds Listed Infrastructure Equity Dis MontsmaM Asset ManageTnent Montanaro UK Income & Seed MU￿aY International Trust 25p Ord National Grid plc 12.431289p Ord NB Private Equity Partners Ltd Cl&%s A Ord Share5 Neuberger Berman Jnv. Funds plc Uncorrelated Strategies P £ Acc Novartis AG CHF 0.50 (Regd) Ocado Group ple 2p Ord PCJIM Funds plc US Corpordte Bond l £ Dis Hedged P¢r5hing Square Holdings Ltd NPV Pheonix Group Holdings Euro 0.0001 Real Estate Credit Inv Ltd Ord NPV Reckitt Benckiser Group plc lop Ord Rio Tinto pl¢ lop Ord Schroder Investment Management Lux SA Asian Tota] Return C Inc SDCL Energy Efficiency Income T￿t Ip Ord Secure Income REIT plc lop Ord Sequoia Economic Infra Inc Fund NPV Skyline Umbrella Fund Eagle Cap US Equity Value Fund R £ Smiths Group pl¢ J7.5p Ord Symcona Ltd Ord NPV Tesco 3.3229/ts Index-Linked SioKk 5111125 £ {var) Third Point Offshore Ltd NPV USS Unil¢ver plc J.1 I I Ip Ord Vthfon¢ Group plc Ord USSO.2095238 Xtrdckets ETC plc {IEI Physi¢al Gold ETC £ Capitsl Calh 43,281.60 31,413.36 40,991.82 58,014.00 60,95).04 38,195.64 59,085.00 39,116.25 51,847.50 J9,66) ? 1.704.30 88,6J3.36 14.550,000.00 25,714.60 43,808.15 65,847.60 65,876.20 46.560.(K) 55.991.56 75,084.75 41.184.00 74.214.80 l(H.292.35 46.280.64 46.433.49 55,494.40 60.01 J25 52.900_00 53,612.70 51,728.40 19,874.00 51.874.02 40,352.?5 52,390.80 43,942 ?5 28.586.80 26,030.00 106.490.10 43,674.50 60,397.65 44,369.52 77,017.41 53,730.95 36.975.00 59.743.10 52.719.69 29,159.50 41,536.18 88,725.18 207.5)5.(M) £17,2)3,060 Page12 The Everard Foundation Notes to tbt Financial Ststtments for the Year Ended th A ri12021 2021 2020 9* Net g8insl(losses) on investments Revaluation of investnents GaiJQ(loss) on sale of inv¢sttDents 450,374 72,595 £522.969 (458,901) (8,139) {£467,040) 10 Fixed Asset Investments 2021 2020 Cost or valU￿70n at 5th April ?020 Additions Disposals Valuation changes at 5th April 2021 16,524,917 752267 (774,728) 522,969 £17.025.525 16.926,207 350,695 (284,945) (467,040) £16.524.917 For the purwses of the 2021 accounts, the trustees obtained an independent professional valuation of the fair value of the unlisted inv&4tsnents &$ at 5th April ?019, and have agreed to use this iDarket valuation &8 at 5th April 2021. The book value of the quoted investrnents at 5th April ?021 is £2,042,482. Net gainsl(losses) on investments includes realised gains for the year of £72,595 [2020: Loss £8.lJ91 and unrealised gain on revaluation to market value of £450,37412020: Loss £458,901]. 11 Debtors Amounts f4lling due: Loans to.. Age UK Leieestershire & Rutland (repayabl¢ in 3 years) Warning Zone Equaiisation payments outstsnding Dividend outstanding ?021 2020 i 00,000 I00.IK 91 loo,000 100,000 515 £200,515 £200,091 12 Cash It bank 2021 2020 Natwest Bank pl¢ Smith & Williamson- Ineome Account CU￿eY & Co LLP Client Account 13,575 4,574 23,669 £37J55 59.665 £64.239 13 CuTTent Assets 2021 20?0 2 Sterlitw Silver Foxes £370 £370 Page 13 The Everard Follndatio I Statements for the Year Ended 5thA ril 2021 14 Credltors: Amounts falllttg due one year 2021 2020 c￿￿¢Y& Cg LLP fees Investrrtht Managemetrt fee IDdependent Examination fee 5.199 1,088 £6,287 4,539 720 15 Movern¢nÉ in Fullds 2021 2020 Unrestricted Funds: Balance brought forward Net ll￿vement in funds Balance carried folw￿d 16,960.114 504,375 £17,464,489 17,437,539 (477,425.00 £16.960.114 N¢t nKivement in funds included in the above are Lg follows." G*ins and Movement in OutgoiTrg5 Oosses) funds Income Unrestricted fllndg 78.391 (96,985) 522,969 16 Related Party Tra￿sactIOnS Included in debtors two concessionary inter¢st free108ns of £100.0￿. The loan to Age UK Leicestershire is repayable in Deeember 2021, and the Losn to WamÈng Zone is repayable in ar￿Ual installments of n(rt less than £20,000 on or before 1st June in the ye￿5 2020. 2021. 2022, 2023 and 2024 or on any earlier date. Warning Zone is a charitable ro¥t]pany limited by guarantee of which Mr Richard A S Everard OBE is the president. The trustces subsequently agreed that Warning Zone Could r￿C]v¢ a repa)qnEni holiday in connection with the June 20?0 repayment. on the b&%is that the repawt Could be made when the funds becam¢ available. The Everard Foundation Annual Report & Financial Stateinents For the Year Ended 5th April 2021 The Everard Foulldation Page I Re ort for the Ye*r Ended 5th A ril 2021 Legal and Admimistratioo D¢tsii5 The trustees are pleased to present their report together with the financial statements of the chaJity for the ywar ended 5th April 2021. The financial aatements have been prepared in accordance with the accounting policies set out in the note% to the the aecounts and comply with the charitys governing docum¢nL The Charities Act ?01 l #rtd A¢¢ounting 2nd Repotcing by Charities.. Statement of Recollunended Prartire applicable to chatilies preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ire13nd published in October 2019. The Trustees acting throughout the year. who were not remunerated and received no expenses, w￿e.. Mr. Rich￿ A.S. EVe￿d Mrs. s￿e￿a A. Ri¢haTds Mr. Simon J. Atkinson Mrs. CharlotEe lone Vowles Mr. Atkinson is, however, a pther in CutTey & Co LLP. 33 Queen Annt Stree( Lnndon WIG 9HY, solicitors to the trust who provided secre￿721, accountancy and tax services charging an annual fee in this cOm]ectio￿ details of which appear in the financial ￿&ten￿nts. The inveskn)ent pDrtfolio managers are Smith & WIll￿￿￿SOn Investmellt Manag¢menL 25 Moorgate, London EC2R 6AY. The charitys bankers are N&tWest Plq Leicester City. The independent examiner is Ailsa Faxey CA. of Millbank Financial Serviees Ltd, Fourth Floor. 10 Bnrton Stree¢ Londottl WIJ 6PX. Strnctur4 Goveran¢e MaD*gemenl The charity was established as a grant making trust by Deed of Trust dated I lth October 1976 and is registered with the Charity Commission, No.. 272248. The charitys address is 33 Queen Anne Streei, London WIG 9HY. The charity is controlled by a b0￿d of trustees who manage aspects of the trust's affairs and in whom vests the p)wer to appoint new tr￿tees. The training needs of the axe reviewed on an annual basis, and existing tr￿teeS are provided with training as and when required. The traÉning costs incurred in the current year were £Nil (2019120= £Nil). They have received appropriate bTi¢fing on their responsibilities under the law rel￿1n£ to ¢harities and their duty to ensure that their charitable activities are for the public ￿nefIt. The selection of furtsre trustees will have regard to the skil]s, knowledge and experi¢n¢e need¢d for the effective administration of the charity. Any new trustees will be provided Mqth copies of the Charity Commission's guidance lo trustees and given an tntroduction tt> ihe activities of the charity by the existing board. R¢l•t¢d Partles No transactions took place with related parties although expenses are charged for the services provided by CU￿eY & Co LLP as disclosed above. Tbe Ever4rd Foundation Page 2 Re ortfortbt Y￿r Ended 5th A ril 2021 Rlsk Management The major risks io which the charity is theoretically exposed are a significant downturn in profitability and thus dividen(ts declared on ihe tNstees' significant shareholding in Everard Brewery Ltd ("EB Ltd"), a privately ow)ed company> and the incompetence of its investment managers and the fraud or negligence of the trustees or their bankers, agents or nominees. The tTVSt¢es believe that by d¢legaling investnxnt management to recognised charity inve5tsn¢nt profe55iona15 and mon¥toring their perforrnance, they have established the efftttive systems to mitigaie these rigks. The trustees also believe that it remains in the trusts best int¢r¢M to continue to hold shares in EB Ltd in the expettation of a rvasonable dividend income gtr¢am deriving from that shareholding. The trugtees n￿Int￿n close links with the Board of Dire¢tors of EB Lid and remain ¢onfid¢nt in th¢ Man￿¢Meftt of th¢ ¢ompany. Th¢ trust¢¢s, having assessed th¢s¢ Tisk5, ar¢ satisfi¢d that 5ySterns ar¢ in plar¢ to mitigat¢ the CP￿rity$ exposure thereto. The TTUSteeg have satisficd thernselves thatthe trust is a going concern and has adequate resources to ¢ontinue in operational existence for the foreseeable fufure. The charitable activiti￿ ar¢ fi]nd¢d by the investment portfolio and although Covid-19 has had a negative impact on this. the wrtfolio has sufficienl value to support continued grant making. Objectivu and Attiviti The ¢l]aritiy's obJ￿ts provide that: "Subject to any appoinlment the Trustees should hold the Trust Fund uwn Trustto pay or apply the income thereof to such charÉtable foundations and for such ehaTitable purposes as the Trustees in their discretion sha]1 from time io lime think fit" In considering how to achieve these objectives the tNstees have had regard to the guidance on public b¢n¢fit issued by th¢ Charity Commission. The objective of the trust is to seek to obtain a sustainable return from their investment ptsrtfolio and in partieular an IncoTr￿ increasing at I£￿t in line inflation over the medium trmL The clwity is reliant on T¢ceivÉng neither additional funding from donors nor any particular level of income from its investments. The tTustees nom]ally only make grants or loans io other regigtered eh8Jities in in which the trustees have an interest, in particular. the advancement of eitizenship or community d¢velopTnent, ¢nvironmental protKtion and improv¢mEnk and the r¢li¢f of those in need in and around the county of Leicestersllire. The %OFe of their giving is deteTsnined only by the extent of their resources- it is not otheTwise restrict¢d either geographically, or by the type of activity carried on by prospective beneficiaries or applicants. The trustees continue to make grants in support of chayitable organisations in furtherance ofthe ¢haritys obj¢th foT the publÈ¢ benefit. Publie Beneftt The tTUStees ¢onfimi that they have complied with the duty in section 17 of the Charities Act 2011 and hav¢ ref¢rred to ihe guid8m¢e ¢ontsined in th¢ Charity Commission's general gutdance on public b¢nefit when reviewing the charitys al￿￿ and objectives and in planning future activities and setting the donations policy for the year. The benefit th* arise5 is the provision of fimding to organisations that demoDstrate chaTitsble puryose. The Everard Foundatlon Page 3 ADDual Re rt f r the Year Ended 5th A ri12021 Aehi¢v¢meMts and Performao¢e During the course of the year the trust made 8 grant5 totalling £69,19) a% set out in note 5 to these awounts. The trustees congider that their principa] objectives are being achieved. The trustees are ple&8ed with the progress made in the fitmncial year ended 5th April 2021 and look fonvard to expanding their work with many other Charities in the yeaTS to co￿￿. Fitt#D¢i*I Revi¢w On 5th April 2021 the inv¢stment portfolio was worth £17,233,060 (2019120.. £16,700249) and in the year ending 5th April 2021 the inveslment income was £78,880 (2019120.. £128,90}. The expenditure on charitsble aetivities totalled £76,980 {2019120: £118,746). The trusttts recognise that no dividends NTrtre generated from EB Ltd in 2020121. and the only income was generated from the tNstees' portfolio of invesm)ents managed by Smith & Williamson Investment Management Limited. The trustees are satisfied that the Charty's assets a available and adequate to meet its obligations. Fixed Asset lTrves¢meThts Investments are a form of basic finan¢ial instrument and are initially wognised it their translrtion va]ue and subsequently mcasured at their fair value as at the bklance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The main forn) of financial risk faced bythe eharity ts that of volatility in equity markets and investhient m2Tkds due io wider economic conditions. the attitrjde of investors to inveskn)ent risL al￿ chang¢s s¢ntiTn¢nt ¢0ll¢¢Tnin￿ equilies and wtthin partiLular sectors or sub sectors. Realised Gains 2nd Losses All gains and losses are taken to the Statement of Financial Activities as they ￿lSe. Realised wain5 and losses on investments are calculated ￿ the difference between sales proceeds and their opening ￿ryin￿T value or their purch&8e value ifacquired Su￿eqUertt to the first day of th¢ financial yeaF. Unrealised gains and losses alt calculated as the difference between the fair valu¢ atthe year end and their caTrying value. Realised and unrealised investment gains and1055eS are combined in the Statement of Financial Activities. Employees The charity employs no staff. Investment Policy Under the Trust Deed the trusttts are empckwered io invest in any type of inVes￿ent Nvhich th¢ truste¢s could make if th¢y absolthely and b¢n¢fi¢ially ¢ntitl¢d. The Investsnent Policy is n￿nitored by regular investment reports annual meetings the Invesknent Manager. The trustees remain S￿Isfied with the perforn￿nCe of iheir Inv¢stment mana￿er and that the tr￿9tees, mandate remains appropriate. A breakdown of the investn*nts held at the year ended 5th April 2021 c8m be seen on page I l. Reserves Policy It is the tntstees, policy tr) distribute approximately one ye8f5 income in the wws¢ of ¢ach fInan¢i￿ year and io refain a reseTV¢ only sufficient to be able to ￿pOnd expeditiously and when appropriate to urgent appea]s. Atthe Balance Sheet d*e the UTtrestricted ttserves amounted to £17,465,069. PlaDS for ¢be Future The trustees intend that ihe pr￿nCipal objectives should be pursued in petyetuity. Pag¢ 4 The Everard FoundatiDD r Ended 5th A ril 2021 Sts*tmeDt of Trustee5' Responsibilities The trustees are responssble for preparing the trustees, report and the financia] ststen%nts in accordance with appli¢abl¢ law and regulations. The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial y&qr in accordance with United Kingdom Gener211y Accepted Aecounting Practice {United KingdOmAC￿untsng Stsffldar￿ and applicable regulations). Under that law the trustees must not appove the financial Slaten￿nts unless they are satisfied that they give a mie and fair vÉew of the state of affairs of the charity and of the incoming re90ur¢es and application of [￿ourceS of the ¢harty for that period. In preparing these finaTLcial statements, the InJ5tees 3re required to.. select suitable accounting policies and then apply them eonsistently. obsetve the methods and principles in the Charities SORP (FRS 102) make judgements and estimates that are rwonable and prudent; state whether applicable accounting standards have been followed, subject to any m8terial departures disclosed and explained in the financial statements" aELd prepare the financia] statements on the going concern basis unless it is inappropriale to pre%urne that the ch&rity will continue in busines5. The trustees are responslble for keeping adequate accounting records which are sufficient to show and explain th¢ charity5 transactiow and disclose with reasonabl¢ accuracy at any time the finan¢ia] position of the d]arity and enable them to enSUTe that the financial statements comply the Ch￿StieS Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisiow of the trust deed. They are also responsible for safeguarding the ￿Sets of ihe charity and hence for taking r&%onable Steps for the prevention amd detection of fraud and other irregularities. S J Atkinson on E*half of the trustees 3rd d 2022 and signed on thetr behalf by: Trustee Page 7 The Everard Foundation Notes to tbe Financial Statements for the Ye&r En 5th A ril 2021 l A¢¢ountlllg Pollc5es a) Basis of financial ststements preparatio The financial statements of the charity. which is a public benefit entity, hav¢ b¢en prepar in accordance wilh the Charilies SORP {FRS 102) 'A¢eounting and Reporting by Charities". Statement of Recommended Pra￿1¢¢ applicable to chariti¢s pr¢paring their ccountg in AceoTdance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102} {effe¢tive l January 2015),, the Financial Reporting Standard applicabl¢ in the Uniied Kingdom 2nd Republic of Ireland and the Charities Act 2011. The financial statements hav¢ been prepared und¢r the historical cost convention. The financial statements have ken prepared to give a'tru¢ and fair, vi¢w and have depthed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to give a'true and fair, view. This departure has involved following Accountang and Reporting by Charities preparing their ac¢ounts in a¢cordanee with ihe Financial Reporting Standard applicable in Éhe UK and Republic of Ireland (FRS 102) issued in October 2019 rnther than the Accounting and Reporting by CharÈties'. Ststement of Recommended Practi¢¢ ¢ffe¢tive from 1st April 2005 which has since been removed. b) Naturt of F￿Trds All fijnds held are unrestricted and the trustees are free to use them in a¢¢ordan¢e with the charitable obj¢Gts. c) Fixed Asset Inv&stments Investments are ststed at market value at the b212nce sheet date. Overse&s Investments are translated into sterling at the rates ruling at ihe year ¢nd. The Statement of Financial Activities (SOFA) includes th¢ n¢t ￿1n5 and losses on revaluation and disposals throughout the year. d) Investment llleomt Investment income is accounted for when receivable and is ststed gross of any reclaimable taxation relief. e} Raising FuDds Expenditure is accounted for on an accrual basis and has been c1￿57f]ed under headings that aggr¢gate all costs related to that category and are shown in the notes to the financial stat¢ments. D Charitsble Gr8Dts Grants payable are recognised the SOFA when they are approved by the trustees and the re¢ipi¢nt has been informed of the amount to be paid. Foreign Currenci£q Transactions denominated in a foTeign currency are translated into sterling at the rate of exchange ruling at the date of th¢ transa¢tion. At the balance sheet dats monetary assets and liabiliti¢5 d¢norninat¢d 3 foreign Currency are translated at th¢ rdte ruling at that d￿e. All exchange differences are dealt with in the SOFA. 2 Remuneration of Trustees In ihe fmancial year to 5th April 2021 the trustees did not receive any remuneTation (2019120.. £Nil) but did r¢c¢ive reimbursement for expenses incurred in the year. Page 8 The Everard Foundation Notes to the Financial Stalemettts for Ihe Year Ellded 5th A ril 2021 2021 2020 3 1hves*meDt Income UK Dividends - quoted UK Dividends - unquoted Unit Trust Income Fixed interest stock Prop¢ty inwm¢ Overseas income Overseag WithholdÈng tax repajrynent Bank Int¢r¢st 21,410 35,163 47,112 760 3,267 4,269 37,325 614 460 £128,970 7,252 1,970 3,428 44,229 67 £78,356 4 Charitable Activities Direct Support Costs Costs (see note 5) {see note 6) Total Charitsble expenditure £69,190 7,791 76,981 5 Direct Costs The Charity undertook no direct charitable ￿tiVItieS but awarded grants to a number of institutions in furth¢rance of its charitable objectives. These are as follows: 2021 2020 1st Queens Dragoon Guards Regimentsl Trust 2nd 60th Leieesterghire Scouts Age Concern Leicestershi￿ & Rudand Action on Hearing Loss ABF The Soldier's Charity Age UK Leicester & Rutland All Saints Chur¢h, Rotherby Boost Brainsttvsl British Heart Foundation Duke of Edinburgh's Award clf 2,000 500 50,000 20,000 900 400 2,500 500 50.500 5,000 5,000 5,000 1,000 80,800 62.500 Page 9 The Everard Foundalio Notes to the Finaneial Statemen 5thA Year Ended 2021 2020 S Direet Costs tonl. Balance b/f Harborough Distri¢t Children and Yound People's Charity Lei¢¢stershire Historic Churches Trusl Leicestershire Search & Rescu¢ LCC Little Troopers LNR AC Ski Cadet Marie Curie National Charity for Trduma Prostsid Rotary Club of Oadby Scout Association SportEbility Tennis Leicester Charitable Trust UK Veterans Hearing Foundation Warning Zone {L¢i¢ester & Rutland Crimebeat) Young Enterprise Young Leicestershire Ltd 62,500 80,800 500 250 1,000 500 2,000 400 500 1,000 1,370 500 250 1,000 500 16,000 5,0(N) 1.350 1,000 500 £108,170 £ 69,190 Alla]ysis of grants made Grants to institutions Grants to Indi￿d￿al$ Total Advan¢ement of: ¢ducation religion health or the saving of lives citizenship or community dev¢lopment the arts, culture. heritage or science environmental protection or improvement the reli¢f of those in need animal welfare promotion of efficiency of the arnied force8 Any other charitable purposes 17,690 1,000 17,690 1,000 50,500 50,500 £69,190 £0 £69,190 Page 10 The Evenrd Foulldatioll Notes to the Fill#n¢Éal Statements for the YeAr 5thA ri12021 2021 2020 6 Support Costs Independent Examination fee Bank charges LEI Registration fe¢ Legal and Professional fees 368 25 72 7,326 £7,791 689 63 72 9,753 £10,577 7 Expellditure on Raising Funds 2021 2020 Investment management fees £20,004 £20,609 8 Employees There are no employees so consequently no stsff costs have been incurred. Page 11 The Everard F uttdation to the Fi￿#0¢191 Statements for the Year Ended 5thA ril 2021 5.4L2021 Mark 9 Investments beld at 5th April 2021 26,311 438 10,020 3,300 1,130 13.180 300 375 1.550 618 79,000 305 303,947 1,010 93,435 780 3.380 30,000 31240 66.300 7200 20200 3,748 28,41K) 21290 4,640 6,950 4,600 5,190 830 950 495 1,555 7.350 31,900 440 475 227 38,650 16,570 42.663 626 3,430 15,000 29,000 3,160 725 31,076 Auwentum FiTht￿h PLC Ip Ord Astrazeneca plc Ord USSO.25 Aviva plc 25p Ord Bl8okroek Smaller Companies Trust 25p Ord Blackstone Group LP Comrnon Units BP plc ord USSO.25 CG Portfolio Fund Real Rettm'A' £ CG Portfolio Fund plc Dollar Hedged £ Dis CRH Ord Euro O.)2 Croda InteTn*tional 10.609756p Ord DP Aircraft l Ltd Otd Prev NPV Edgewood L Select Us Select Growth I Z US$ Everards Brewery Ltd £1 ord Experian ple Ord USSO.10 Fair Oaks Income Fund Ltd. Ord NPV (?017) Findlay Park Fund5 plc Amtrion £ Hedged Dist Fidelity Inv Services {UK) Ltd Fidelity Asi& W £ GCP Student Living plc Ip Ord Hem)es Inv ManageTnent Global EmeTging Markets J2 In¢ £ HBC 11.400/0 FTSEIESTX Def Autwa]12414r2026 Informa ple 0.￿)Ip Ord JPMorgan Asset Management UK Ltd Japan C Aec Jupiter U.T. Managers Europeala Z Inc LgThd Global Active Funds Listed Infrastructure Equity Dis MontsmaM Asset ManageTnent Montanaro UK Income & Seed MU￿aY International Trust 25p Ord National Grid plc 12.431289p Ord NB Private Equity Partners Ltd Cl&%s A Ord Share5 Neuberger Berman Jnv. Funds plc Uncorrelated Strategies P £ Acc Novartis AG CHF 0.50 (Regd) Ocado Group ple 2p Ord PCJIM Funds plc US Corpordte Bond l £ Dis Hedged P¢r5hing Square Holdings Ltd NPV Pheonix Group Holdings Euro 0.0001 Real Estate Credit Inv Ltd Ord NPV Reckitt Benckiser Group plc lop Ord Rio Tinto pl¢ lop Ord Schroder Investment Management Lux SA Asian Tota] Return C Inc SDCL Energy Efficiency Income T￿t Ip Ord Secure Income REIT plc lop Ord Sequoia Economic Infra Inc Fund NPV Skyline Umbrella Fund Eagle Cap US Equity Value Fund R £ Smiths Group pl¢ J7.5p Ord Symcona Ltd Ord NPV Tesco 3.3229/ts Index-Linked SioKk 5111125 £ {var) Third Point Offshore Ltd NPV USS Unil¢ver plc J.1 I I Ip Ord Vthfon¢ Group plc Ord USSO.2095238 Xtrdckets ETC plc {IEI Physi¢al Gold ETC £ Capitsl Calh 43,281.60 31,413.36 40,991.82 58,014.00 60,95).04 38,195.64 59,085.00 39,116.25 51,847.50 J9,66) ? 1.704.30 88,6J3.36 14.550,000.00 25,714.60 43,808.15 65,847.60 65,876.20 46.560.(K) 55.991.56 75,084.75 41.184.00 74.214.80 l(H.292.35 46.280.64 46.433.49 55,494.40 60.01 J25 52.900_00 53,612.70 51,728.40 19,874.00 51.874.02 40,352.?5 52,390.80 43,942 ?5 28.586.80 26,030.00 106.490.10 43,674.50 60,397.65 44,369.52 77,017.41 53,730.95 36.975.00 59.743.10 52.719.69 29,159.50 41,536.18 88,725.18 207.5)5.(M) £17,2)3,060 Page12 The Everard Foundation Notes to tbt Financial Ststtments for the Year Ended th A ri12021 2021 2020 9* Net g8insl(losses) on investments Revaluation of investnents GaiJQ(loss) on sale of inv¢sttDents 450,374 72,595 £522.969 (458,901) (8,139) {£467,040) 10 Fixed Asset Investments 2021 2020 Cost or valU￿70n at 5th April ?020 Additions Disposals Valuation changes at 5th April 2021 16,524,917 752267 (774,728) 522,969 £17.025.525 16.926,207 350,695 (284,945) (467,040) £16.524.917 For the purwses of the 2021 accounts, the trustees obtained an independent professional valuation of the fair value of the unlisted inv&4tsnents &$ at 5th April ?019, and have agreed to use this iDarket valuation &8 at 5th April 2021. The book value of the quoted investrnents at 5th April ?021 is £2,042,482. Net gainsl(losses) on investments includes realised gains for the year of £72,595 [2020: Loss £8.lJ91 and unrealised gain on revaluation to market value of £450,37412020: Loss £458,901]. 11 Debtors Amounts f4lling due: Loans to.. Age UK Leieestershire & Rutland (repayabl¢ in 3 years) Warning Zone Equaiisation payments outstsnding Dividend outstanding ?021 2020 i 00,000 I00.IK 91 loo,000 100,000 515 £200,515 £200,091 12 Cash It bank 2021 2020 Natwest Bank pl¢ Smith & Williamson- Ineome Account CU￿eY & Co LLP Client Account 13,575 4,574 23,669 £37J55 59.665 £64.239 13 CuTTent Assets 2021 20?0 2 Sterlitw Silver Foxes £370 £370 Page 13 The Everard Follndatio I Statements for the Year Ended 5thA ril 2021 14 Credltors: Amounts falllttg due one year 2021 2020 c￿￿¢Y& Cg LLP fees Investrrtht Managemetrt fee IDdependent Examination fee 5.199 1,088 £6,287 4,539 720 15 Movern¢nÉ in Fullds 2021 2020 Unrestricted Funds: Balance brought forward Net ll￿vement in funds Balance carried folw￿d 16,960.114 504,375 £17,464,489 17,437,539 (477,425.00 £16.960.114 N¢t nKivement in funds included in the above are Lg follows." G*ins and Movement in OutgoiTrg5 Oosses) funds Income Unrestricted fllndg 78.391 (96,985) 522,969 16 Related Party Tra￿sactIOnS Included in debtors two concessionary inter¢st free108ns of £100.0￿. The loan to Age UK Leicestershire is repayable in Deeember 2021, and the Losn to WamÈng Zone is repayable in ar￿Ual installments of n(rt less than £20,000 on or before 1st June in the ye￿5 2020. 2021. 2022, 2023 and 2024 or on any earlier date. Warning Zone is a charitable ro¥t]pany limited by guarantee of which Mr Richard A S Everard OBE is the president. The trustces subsequently agreed that Warning Zone Could r￿C]v¢ a repa)qnEni holiday in connection with the June 20?0 repayment. on the b&%is that the repawt Could be made when the funds becam¢ available. ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE EVERARD FOUNDATION FOR THE YEAR ENDED 5 APRIL 2021** I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2021 which are set out on pages 5 to 17. ## **Responsibilities and basis of report** As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”). I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent Examiner’s Statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Ailsa Farey CA CTA 4[th] Floor 10 Bruton Street London W1J 6PX DATED this 3[rd] day of February 2022.