Registered number: 01355222 Charity number: 275489
Bootstrap Company Limited (A company limited by guarantee)
Trustees' report and financial statements For the year ended 31 March 2022
Bootstrap Company Limited
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Independent auditors' report on the financial statements | 7 - 10 |
| Consolidated statement of financial activities | 11 |
| Consolidated balance sheet | 12 - 13 |
| Company balance sheet | 14 - 15 |
| Consolidated statement of cash flows | 16 |
| Notes to the financial statements | 17 - 34 |
Bootstrap Company Limited
(A company limited by guarantee)
Reference and administrative details of the Company, its Trustees and advisers For the year ended 31 March 2022
| Trustees | Sarah Elizabeth Cary |
|---|---|
| Jordan Ashley Bookman | |
| Andrew Catcheside | |
| Stewart Charles Whiting | |
| Michael John Delfs, Chair | |
| Denis Philip King (Resigned 24 May 2022) | |
| Clarisse Simonke (Resigned 24 May 2022) | |
| Patrizia Canziani (Resigned 11 July 2022) | |
| Symone Krimowa (Resigned 20 July 2022) | |
| Company registered number 01355222 Charity registered number 275489 Registered office The Print House 18 Ashwin Street London E8 3DL Independent auditors Kreston Reeves LLP Chartered Accountants 2nd Floor 168 Shoreditch High Street London E1 6RA |
Page 1
Bootstrap Company Limited
(A company limited by guarantee)
Trustees' report For the year ended 31 March 2022
The Trustees present their annual report together with the audited financial statements of the Company for the year 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
Bootstrap is a business-led charity that promotes responsible business as a way to address inequality in Hackney, which it does in three ways:
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Promoting responsible business practice – Bootstrap tenants will pay the LLW (90% to date), support young people in the criminal justice system into employment, and promote diversity and inclusion through recruitment and retention practices.
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Helping the young people in Hackney to make informed career choices –
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Tenants provide insight events each year
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Bootstrap trained mentors will support young people to make informed career choices
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Tenants will provide paid work placements and internships
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Supporting tenant charities to deliver their objectives - establishing partnerships between commercial tenants and charity tenants to provide skills based employee volunteering.
Bootstrap runs a commercial lettings business (c 60,000 sq. ft), which generates a surplus. Bootstrap’s business model enables it to fund the basic infrastructure of its charity model, with a commitment to support beneficiaries directly – through paid work placements and training. Tenants in turn deliver charity activities as part of their commitment to responsible business and Bootstrap’s objectives.
Bootstrap is establishing delivery partnerships with youth mentoring and career charities to support its tenants support young people into employment. Bootstrap wants to enable access to its tenant base for established organisations, rather than develop an elaborate infrastructure.
Bootstrap currently has 73 tenants from a diverse range of industries, most of them concentrated in four main clusters - Film & TV Production (18%), Design & Architecture (14.6%), Events & Hospitality (14.6%), and Charity Sector (18%). All have committed to support Bootstraps’ charity work.
Bootstrap has identified 5 Strategic priorities for the coming 2 years:
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Charity – deliver and sustain a charity offer that is relevant to Hackney
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Stability – Bootstrap will build stability into its finance and operations
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Bootstrap Team – To ensure that the Bootstrap Team is well trained and motivated to deliver its organisational objectives
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Estate Management and Asset Development – This is maintaining the lettings operations, and improving Bootstrap’s built assets
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Risk Management – Bootstrap has identified two immediate risks – the market rent review of one of its rented buildings, and the pending recession
Page 2
Bootstrap Company Limited
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 March 2022
Achievements and performance
Financial review
a. Going concern
The accounts show that, during the year to 31 March 2022, the Charity’s expenditure exceeded its income.
The impact of Covid-19 carried through 2021, and had a continued adverse effect on operations; many tenants were unable to pay their rents, use their premises, and occupancy fell to under 70%.
This has since recovered to the point of ‘full’ occupancy, and there is a waiting list in place for prospective tenants. The Charity has cut its operating costs, and divested itself of its events business and replaced this with secured lettings income. As stated last year, the Charity is in a stronger financial position than it was before Covid.
The charity took out a bridging loan to repay HMRC, which was the Charity’s remaining major creditor. The Charity is now in talks with mainstream lenders to refinance this debt, and to rebuild in reserves.
Trustees and Management have prepared financial forecasts for the period to October 2024 (and beyond), which have been scrutinised by the Charity’s advisors.
Additionally, and as a last resort, the Charity maintains a positive asset value and could dispose of its property assets in order to release cash to meet its obligations - if required.
The above factors have led the Trustees to conclude that, with the Charity having moved into profitability, and options to refinance, it would be appropriate to prepare the accounts on a going concern basis.
b. Reserves policy
As at 31 March 2022, the Charity held no free reserves. There was no change to reserves policy stated in the previous year, which was that the board decided to take a measured approach to building reserves balancing the commitment of investment to maximising social impact. Because there was a deficit in the year, the negative reserves have not improved but projections indicate that the charity will be making a surplus in the medium term. The Reserves Policy will be reviewed in the coming months.
c. Transactions and financial position
The Statement of Financial Activities shows net expenditure for the year of £367,543 (2021: £52,362).
Occupancy rates increased this year due to recovery following Covid, and therefore rental income increased to £1,464,580 (2021: £1,369,033).
Consolidated net assets at the year-end stand at £820,459 (2021: £1,188,002), including £3,418,463 tangible fixed assets (2021: £3,455,114). A majority of the expenditure is spent on property leasehold costs and managing and refurbishing the rental properties alongside servicing the company's borrowing.
Structure, governance and management
a. Constitution
The charity is a company limited by guarantee and was formed on 2 March 1978. It is governed by its Memorandum and Articles of Association. Non-charitable activities are undertaken by a wholly owned subsidiary Bootstrap Trading Company Limited, which was incorporated on 16 February 2012.
Page 3
Bootstrap Company Limited (A company limited by guarantee)
Trustees' report (continued) For the year ended 31 March 2022
Structure, governance and management (continued)
b. Methods of appointment or election of Trustees
The trustees who served throughout the year are listed on page 1. Board meetings were held four times a year.
The existing trustee board takes responsibility to recruit and appoint new trustees. Prospective trustees are invited to observe several board meetings before joining the board and an induction pack exists for new trustees.
c. Organisational structure
Bootstrap's services are delivered by a combination of paid staff supported by specialist contractors and volunteers. The staff team at the end of 2021/22 numbered 15 full time employees.
d. Pay policy for key management personnel
The directors, who are the Trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day to day basis. All directors give of their time freely and no director received remuneration in the year. The pay of the senior staff is reviewed periodically (normally every three years) and normally increased in accordance with average earnings based on the financial position of the charity. In view of the nature of the charity, the directors benchmark against pay levels in other charities of a similar size.
e. Risk management
Trustees and Management have identified the following key operational risks, and is assessing and preparing mitigation as needed:
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Rent Review – A market rent review is underway on one of the Charity’s buildings. The last rent review – 5 years ago – quadrupled the rent. Provision has been made in the under leases to address this.
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Recession – This will require tight cost controls given inflation, and caring for our current tenancy base through another turbulent economic period.
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Maintain Tenant Levels – Bootstrap’s financial stability is built on its lettings business; and as such must maintain as close to ‘full occupancy’ as possible. Confidence in the organisation’s ability to reach and maintain full occupancy is that it has done this twice in the last 2 years – pre Covid (from 70% to 100%), and then during Covid (from 60% to 100%). There is method in this.
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Hackney Council has insisted on maintaining a nine-month break clause in one of the Charity’s new leases. This is because the space is included for development in the local development plan. This is a long term risk, but Bootstrap needs to prepare a consolidated approach to this with its partners.
The charity Trustees have given consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks.
f. Fund raising
The charitable company did not partake in charitable fundraising activities.
Page 4
Bootstrap Company Limited
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 March 2022
Plans for future periods
Since the year end, the group has agreed a lease with a third party to rent the roof, which has resulted in Bootstrap Trading Company Limited, the subsidiary of the charity, ceasing to trade.
Management are considering the future of Bootstrap Trading Company Limited and at the date of signing, no formal decision has been made, however given Bootstrap Trading Company Limited has ceased to trade, the director has concluded that Bootstrap Trading Company Limited is not a going concern and that the financial statements have been prepared on a basis other than that of the going concern basis.
This conclusion does not impact the Trustees conclusion that the group is a going concern, although appreciate there is material uncertainty.
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company 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 Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
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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.
Auditors
The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Page 5
Bootstrap Company Limited
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 March 2022
Approved by order of the members of the board of Trustees on and signed on their behalf by:
Jordan Bookman Trustee
Date: 23 December 2022
Page 6
Bootstrap Company Limited
(A company limited by guarantee)
Independent auditors' report to the Members of Bootstrap Company Limited
Opinion
We have audited the financial statements of Bootstrap Company Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 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 31 March 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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.
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statements. The Group's expenditure exceeded income by £367,543 during the year ended 31 March 2022 and, as of that date, the Group's current liabilities exceeded its current assets by £1,216,846. As stated in note 2.2, these events or conditions, along with the other matters as set forth in the note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Trustees' assessment of the Group's ability to continue to adopt the going concern basis of accounting included reviewing management accounts, budget and forecast for the following year and future plan.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 7
Bootstrap Company Limited (A company limited by guarantee)
Independent auditors' report to the Members of Bootstrap Company Limited (continued)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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the parent charitable company has not kept sufficient accounting records; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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.
Page 8
Bootstrap Company Limited (A company limited by guarantee)
Independent auditors' report to the Members of Bootstrap Company Limited (continued)
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to employment law. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates. Audit procedures performed by the engagement team included:
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Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations; and
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Assessment of identified fraud risk factors; and Challenging assumptions and judgements made by management in its significant accounting estimates; and
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Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
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Reading minutes of meetings of those charged with governance; andIdentifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Page 9
Bootstrap Company Limited
(A company limited by guarantee)
Independent auditors' report to the Members of Bootstrap Company Limited (continued)
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
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Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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.
Kreston Reeves LLP
Chartered Accountants Statutory Auditor London
Date:
Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 10
Bootstrap Company Limited
(A company limited by guarantee)
Consolidated Statement of financial activities (incorporating income and expenditure account) For the year ended 31 March 2022
| Note Income from: Donations and legacies 4 Charitable activities 5 Other trading activities 6 Total income Expenditure on: Raising funds Charitable activities Total expenditure Net expenditure before taxation Taxation Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 153,090 1,464,580 629,271 2,246,941 623,543 1,990,941 2,614,484 (367,543) - (367,543) 1,188,002 (367,543) 820,459 |
Total funds 2022 £ 153,090 1,464,580 629,271 2,246,941 623,543 1,990,941 2,614,484 (367,543) - (367,543) 1,188,002 (367,543) 820,459 |
Total funds 2021 £ 387,152 1,369,033 134,414 1,890,599 199,100 1,746,016 1,945,116 (54,517) 2,155 (52,362) 1,240,364 (52,362) 1,188,002 |
|---|---|---|---|
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 17 to 34 form part of these financial statements.
Page 11
Bootstrap Company Limited (A company limited by guarantee) Registered number: 01355222
Consolidated balance sheet As at 31 March 2022
| Note Fixed assets Intangible assets 11 Tangible assets 12 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Total net assets Charity funds Unrestricted funds Designated funds 17 Capital funds 17 General funds 17 Total unrestricted funds 17 Total funds |
549,675 3,079 552,754 (1,769,600) 1,538,560 577,836 (1,295,937) |
2022 £ 5,119 3,413,334 3,418,453 (1,216,846) 2,201,607 (1,381,148) 820,459 820,459 820,459 |
508,889 81,539 590,428 (1,544,578) 1,563,869 585,791 (961,658) |
2021 £ 7,394 3,447,720 3,455,114 (954,150) 2,500,964 (1,312,962) 1,188,002 1,188,002 1,188,002 |
|---|---|---|---|---|
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 151 of the Charities Act 2011.
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 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
Page 12
Bootstrap Company Limited
(A company limited by guarantee) Registered number: 01355222
Consolidated balance sheet (continued) As at 31 March 2022
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Jordan Bookman
Trustee Date: 23 December 2022
The notes on pages 17 to 34 form part of these financial statements.
Page 13
Bootstrap Company Limited (A company limited by guarantee) Registered number: 01355222
Company balance sheet As at 31 March 2022
| Note Fixed assets Intangible assets 11 Tangible assets 12 Investments 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Total net assets Charity funds Unrestricted funds Designated funds 17 Capital funds 17 General funds 17 Total unrestricted funds 17 Total funds |
547,259 2,626 549,885 (1,751,455) 1,538,560 577,836 (1,280,651) |
2022 £ 5,119 3,413,334 10 3,418,463 (1,201,570) 2,216,893 (1,381,148) 835,745 835,745 835,745 |
501,034 77,760 578,794 (1,502,247) 1,563,869 585,791 (930,951) |
2021 £ 7,394 3,447,720 10 3,455,124 (923,453) 2,531,671 (1,312,962) 1,218,709 1,218,709 1,218,709 |
|---|---|---|---|---|
The Company's net movement in funds for the year was £(382,965) (2021 - £10,169).
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 151 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
Page 14
Bootstrap Company Limited
(A company limited by guarantee) Registered number: 01355222
Company balance sheet (continued) As at 31 March 2022
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Jordan Bookman
Trustee Date: 23 December 2022
The notes on pages 17 to 34 form part of these financial statements.
Page 15
Bootstrap Company Limited (A company limited by guarantee)
| Consolidated statement of cash flows For the year ended 31 March 2022 Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Repayments of borrowing Net cash used in 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 34 form part of these financial statements |
2022 £ 181,910 850 (102,537) (101,687) (158,683) (158,683) (78,460) 81,539 3,079 |
2021 £ 193,720 - (45,206) (45,206) (57,435) (57,435) 91,079 (9,540) 81,539 |
|---|---|---|
Page 16
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
1. General information
Bootstrap Company Limited is a company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. The address of the registered office is provided in Reference and administrative details. Details of the charity's operations are provided in the Report of the Trustees.
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.
Bootstrap Company 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 Consolidated statement of financial activities (SOFA) and Consolidated 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 Going concern
The accounts show that, during the year to 31 March 2022, the Charity’s expenditure exceeded its income.
The impact of Covid-19 carried through 2021, and had a continued adverse effect on operations; many tenants were unable to pay their rents, use their premises, and occupancy fell to under 70%.
This has since recovered to the point of ‘full’ occupancy, and there is a waiting list in place for prospective tenants. The Charity has cut its operating costs, and divested itself of its events business and replaced this with secured lettings income. As stated last year, the Charity is in a stronger financial position than it was before Covid.
The charity took out a bridging loan to repay HMRC, which was the Charity’s remaining major creditor. The Charity is now in talks with mainstream lenders to refinance this debt, and to rebuild in reserves.
Trustees and Management have prepared financial forecasts for the period to October 2024 (and beyond), which have been scrutinised by the Charity’s advisors.
Additionally, and as a last resort, the Charity maintains a positive asset value and could dispose of its property assets in order to release cash to meet its obligations - if required.
The above factors have led the Trustees to conclude that, with the Charity having moved into profitability, and options to refinance, it would be appropriate to prepare the accounts on a going concern basis, although appreciate there is a material uncertainty given the net current liability position at the year end.
Page 17
Bootstrap Company Limited
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
2. Accounting policies (continued)
2.3 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.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
2.4 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.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 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.
2.6 Research and development
Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.
Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated statement of financial activities.
2.7 Taxation
The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 18
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
2. Accounting policies (continued)
2.8 Intangible assets and amortisation
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.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
Website costs are amortised on a straight-line basis over 5 years.
2.9 Tangible fixed assets and depreciation
Tangible fixed assets costing £750 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
| Long-term leasehold property | - Over the period of the lease |
|---|---|
| Plant and machinery | - 4 years |
| Fixtures and fittings | - 5 years |
2.10 Investments
.Investments in subsidiaries are valued at cost less provision for impairment.
2.11 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.
2.12 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.13 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.
Page 19
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
2. Accounting policies (continued)
2.14 Pensions
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
2.15 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.
3. Critical accounting estimates and areas of judgment
Estimates and judgments 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:
Recoverability of trade debtors (note 14) - Judgement has been required when deciding whether outstanding trade debtors are recoverable and whether there is any need for provisions against particular tenants. Overall trade debtors and a provision made against each invoice that management don't believe are recoverable, given their knowledge of the relevant tenant. As at the balance sheet date, the bad debt provision was £9,051 (2021: £69,036).
4. Income from donations and legacies
| Unrestricted funds 2022 £ Government grants 153,090 Unrestricted funds 2021 £ Donations 500 Grants 18,000 Government grants 368,652 387,152 |
Total funds 2022 £ 153,090 |
|---|---|
| Total funds 2021 £ 500 18,000 368,652 387,152 |
Page 20
Bootstrap Company Limited
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
| Notes to the financial statements For the year ended 31 March 2022 |
|
|---|---|
| 5. Income from charitable activities Unrestricted funds 2022 £ Rental income 1,464,580 Unrestricted funds 2021 £ Rental income 1,369,033 6. Income from other trading activities Income from non charitable trading activities |
Total funds 2022 £ 1,464,580 |
| Total funds 2021 £ 1,369,033 |
|
| Unrestricted funds 2022 £ Sales at public events 617,432 Other income 11,839 629,271 Unrestricted funds 2021 £ Sales at public events 123,091 Other income 11,323 134,414 |
Total funds 2022 £ 617,432 11,839 629,271 |
|---|---|
| Total funds 2021 £ 123,091 11,323 134,414 |
Page 21
Bootstrap Company Limited
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
7. Analysis of expenditure by activities
| Expenditure Charitable activities Expenditure Charitable activities |
Activities undertaken directly 2022 £ - 779,609 779,609 Activities undertaken directly 2021 £ - 768,607 768,607 |
Support costs 2022 £ 1,211,332 - 1,211,332 Support costs 2021 £ 977,409 - 977,409 |
Total funds 2022 £ 1,211,332 779,609 1,990,941 |
|---|---|---|---|
| Total funds 2021 £ 977,409 768,607 1,746,016 |
Analysis of direct costs
| Insurance premiums Rent, rates and service charges Light and heat Security costs Other direct costs |
Total funds 2022 £ 23,453 581,016 111,028 61,862 2,250 779,609 |
Total funds 2021 £ 29,040 590,253 99,718 49,381 215 768,607 |
|---|---|---|
Page 22
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
7. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Professional fees Advertising Bad debts Cleaning costs Other staff costs Bank charges Interest and bank loan charges Repairs and maintenance Stationery, printing and postage Other office expenses VAT disallowed under partial exemption Depreciation Governance costs 8. Auditors' remuneration Fees payable to the Company's auditor for the audit of the Company's annual accounts Fees payable to the Company's auditor in respect of: All non-audit services not included above |
Total funds 2022 £ 572,902 168,088 4,077 38,411 15,782 12,284 1,420 72,157 62,841 6,321 58,155 26,969 137,064 34,861 1,211,332 2022 £ 5,700 1,050 |
Total funds 2021 £ 561,862 104,481 6,166 11,481 7,320 2,959 690 70,044 28,537 10,228 20,806 17,624 117,941 17,270 977,409 |
|---|---|---|
| 2021 £ 5,300 900 |
Page 23
Bootstrap Company Limited
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
Group 2022 £ 725,994 55,381 15,691 797,066 |
Group 2021 £ 592,557 50,050 15,320 657,927 |
Company 2022 £ 501,830 55,381 15,691 572,902 |
Company 2021 £ 496,492 50,050 15,320 |
|---|---|---|---|---|
| 561,862 |
The average number of persons employed by the Company during the year was as follows:
| Group | Group | Company | Company | |
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| No. | No. | No. | No. | |
| Staff | 22 | 20 | 22 | 20 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| Group | Group | ||
|---|---|---|---|
| 2022 | 2021 | ||
| No. | No. | ||
| In the band £70,001 | - £80,000 | 1 | 1 |
Key management personnel received a combined salary of £257,215 (2021: £229,820).
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).
Page 24
Bootstrap Company Limited (A company limited by guarantee)
| Notes to the financial statements For the year ended 31 March 2022 11. Intangible assets Group and Company Cost At 1 April 2021 At 31 March 2022 Amortisation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Website costs £ 11,375 |
|---|---|
| 11,375 | |
| 3,981 2,275 |
|
| 6,256 | |
| 5,119 | |
| 7,394 |
Page 25
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
12. Tangible fixed assets
Group and Company
| Cost or valuation At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation At 1 April 2021 Charge for the year On disposals At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Long-term leasehold property £ 4,043,417 12,011 - 4,055,428 771,150 64,043 - 835,193 3,220,235 3,272,267 |
Plant and machinery £ 9,022 7,088 - 16,110 (9,568) 13,429 - 3,861 12,249 18,590 |
Fixtures and fittings £ 226,204 83,439 (2,136) 307,507 69,341 57,377 (61) 126,657 180,850 156,863 |
Total £ 4,278,643 102,538 (2,136) 4,379,045 830,923 134,849 (61) 965,711 3,413,334 3,447,720 |
|---|---|---|---|---|
Page 26
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
13. Fixed asset investments
| Company Cost At 1 April 2021 At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Investments in subsidiary companies £ 10 |
|---|---|
| 10 | |
| 10 | |
| 10 |
Principal subsidiaries
The following was a subsidiary undertaking of the Company:
| Name | Company | Registered office or principal | Registered office or principal | Registered office or principal | Principal activity | Principal activity | ||
|---|---|---|---|---|---|---|---|---|
| number | place of business | |||||||
| The Bootstrap Trading Company | 07952747 | 18 Ashwin Street, London, E8 | Operating a bar and | |||||
| Limited | 3DL | event | hire facilities | |||||
| Class of | Holding | Included in | ||||||
| shares | consolidation | |||||||
| Ordinary | 100% Yes | |||||||
| The financial | results of the subsidiary for the | year were: | ||||||
| Name | Income | Expenditure | Profit/(Loss) | Net assets | ||||
| £ | £ | / Surplus/ | £ | |||||
| (Deficit) for | ||||||||
| the year | ||||||||
| £ | ||||||||
| The Bootstrap Trading Company | 629,271 | (633,644) | (4,373) | (67,810) | ||||
| Limited |
The financial results of the subsidiary for the year were:
Page 27
Bootstrap Company Limited
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
14. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
Group 2022 £ 338,876 18,156 192,643 549,675 |
Group 2021 £ 320,268 13,584 175,037 508,889 |
Company 2022 £ 338,876 16,002 192,381 547,259 |
Company 2021 £ 314,568 11,429 175,037 |
|---|---|---|---|---|
| 501,034 |
15. Creditors: Amounts falling due within one year
| Bank loans Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income |
Group 2022 £ 163,153 647,911 - 611,585 82,859 264,092 1,769,600 |
Group 2021 £ 317,235 487,527 - 501,530 71,058 167,228 1,544,578 |
Company 2022 £ 163,153 614,065 39,588 593,448 82,859 258,342 1,751,455 |
Company 2021 £ 317,235 472,780 - 486,246 71,058 154,928 |
|---|---|---|---|---|
| 1,502,247 |
Page 28
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
16. Creditors: Amounts falling due after more than one year
| Bank loans The aggregate amount of liabilities payable or reporting date is: Payable or repayable by instalments |
Group Group Company Company 2022 2021 2022 2021 £ £ £ £ 1,381,148 1,312,962 1,381,148 1,312,962 repayable wholly or in part more than five years after the Group Group Company Company 2022 2021 2022 2021 £ £ £ £ 688,196 691,165 688,196 691,165 688,196 691,165 688,196 691,165 |
Group Group Company Company 2022 2021 2022 2021 £ £ £ £ 1,381,148 1,312,962 1,381,148 1,312,962 repayable wholly or in part more than five years after the Group Group Company Company 2022 2021 2022 2021 £ £ £ £ 688,196 691,165 688,196 691,165 688,196 691,165 688,196 691,165 |
|---|---|---|
| 691,165 |
The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:
The bank loans included in note 14 and 15 are secured by a legal mortgage over the leasehold property, The Print House, and by fixed and floating charges against all the assets of the company.
Page 29
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
17. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Revaluation reserve Capital funds General funds General funds Total Unrestricted funds |
Balance at 1 April 2021 £ 1,563,869 585,791 2,149,660 (961,658) 1,188,002 |
Income £ - - - 2,246,941 2,246,941 |
Expenditure £ - - - (2,614,484) (2,614,484) |
Transfers in/out £ (25,309) (7,955) (33,264) 33,264 - |
Balance at 31 March 2022 £ 1,538,560 577,836 2,116,396 (1,295,937) 820,459 |
|---|---|---|---|---|---|
Page 30
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
17. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Revaluation reserve Capital funds General funds General funds Total Unrestricted funds |
Balance at 1 April 2020 £ 1,589,178 601,701 2,190,879 Balance at 1 April 2020 £ (950,515) 1,240,364 |
Income £ - - - Income £ 1,890,599 1,890,599 |
Expenditure £ - - - Expenditure £ (1,945,116) (1,945,116) |
Taxation £ - - - Taxation £ 2,155 2,155 |
Transfers in/out £ (25,309) (15,910) (41,219) Transfers in/out £ 41,219 - |
Balance at 31 March 2021 £ 1,563,869 585,791 2,149,660 Balance at 31 March 2021 £ (961,658) 1,188,002 |
|---|---|---|---|---|---|---|
Page 31
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
18. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 3,413,334 Intangible fixed assets 5,119 Current assets 552,754 Creditors due within one year (1,769,600) Creditors due in more than one year (1,381,148) Total 820,459 Analysis of net assets between funds - prior year Unrestricted funds 2021 £ Tangible fixed assets 3,447,720 Intangible fixed assets 7,394 Current assets 590,428 Creditors due within one year (1,544,578) Creditors due in more than one year (1,312,962) Total 1,188,002 |
Total funds 2022 £ 3,413,334 5,119 552,754 (1,769,600) (1,381,148) 820,459 Total funds 2021 £ 3,447,720 7,394 590,428 (1,544,578) (1,312,962) 1,188,002 |
|---|---|
Page 32
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
19. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Amortisation charges Loss on the sale of fixed assets Increase in debtors Increase in creditors Net cash provided by operating activities 20. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 21. Analysis of changes in net debt At 1 April 2021 £ Cash at bank and in hand 81,539 Debt due within 1 year (317,235) Debt due after 1 year (1,312,962) (1,548,658) |
Group 2022 £ (367,543) 134,849 2,275 - (40,786) 453,115 181,910 Group 2022 £ 3,079 3,079 Cash flows £ (78,460) 154,082 (68,186) 7,436 |
Group 2021 £ (52,362) 115,938 2,275 19,191 (219,071) 327,749 193,720 Group 2021 £ 81,539 81,539 At 31 March 2022 £ 3,079 (163,153) (1,381,148) (1,541,222) |
|---|---|---|
Page 33
Bootstrap Company Limited (A company limited by guarantee)
Notes to the financial statements For the year ended 31 March 2022
22. 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 paid by the group to the fund and amounted to £15,691 (2021: £15,320). Contributions of £10,754 (2021: £1,299) were payable to the fund at the balance sheet date and are included in creditors.
23. Operating lease commitments
At 31 March 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
Group 2022 £ 515,146 2,392,000 6,347,250 9,254,396 |
Group 2021 £ 488,220 2,304,146 6,328,750 9,121,116 |
Company 2022 £ 515,146 2,392,000 6,374,250 9,281,396 |
Company 2021 £ 488,220 2,304,146 6,328,750 |
|---|---|---|---|---|
| 9,121,116 |
24. Related party transactions
The company has taken advantage of the exemption conferred by Section 33.1A of FRS102 not to disclose transactons between members of the group.
There were no other related party transactions during the financial year (2021: None).
25. Post balance sheet events
Since the year end, the subsidiary Bootstrap Trading Company Limited has ceased to trade and will be dormant for the foreseeable future.
Page 34