Company Regi$tratlon number.. 00567232 Charity Registration number.. 284077 PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
PROCESSORS & GROVERS RESEARCH ORGANISATION {A Company Limlted by Guarantee) CONTENTS Page Reference and Adminlstratlve Detalls of the Charity. its Trustees and Advisors Trustses. Report 3-12 Statement of Trustees. Responslbilities 13 Independent Audltors. Report on the Financlal Statemènts 14-17 Consolidated Ststement of Flnancial Actlvltles 18 Consolidated Balance Shoot 19 Charlty Balance Sheet 20 Consolidated SL*oment of Cash Flows 21 Notes to the Flnanclal Statements 22-48
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limlted by Guarantee) REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020 Trustees S W Bumslead1 S J Francis, Chairman1 S P Marx (resigned 8 September 2020)1 ABury J P Fenton (resignèd 8 September 202011 C S Stowe, Vice Chairman1 T J Yewbrey C G Renner1 F G Smith (resigned 8 September 2020) J M Hopwood D J Sedgeley S J Portas JRSWard Professor D L Sparkes L J Cottey J A Maguir8 lappoinled 8 September 2020) Denotes member ofthe Man8gemenl and Finance Committtaa Company reglstsred nurnbèr 00567232 Charty registéred number 284077 Rggistered offlce The Research Station Great North Road Thornhaugh Peterborough PE8 6HJ Company secretary Mr R G Vick6rs Chlef executive officor Mr R G Wickers Independent auditors MHA Maclntyr& Hudson Chartered Accountants ststulory Auditor 1 The Forum Minerva Buslness Park Lynch Wood Pelerborough PE2 6FT Page 1
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Bankars Lloyds Bank PIC 65 High Street Stamford Lincolnshire PE9 2AT Clydesdale Bank PIC 10 Church Street Peterborough PE8 6HJ Sollcltors Greenwoods Monkstone House City Road Peterborough PEI 1JE Investment advlsor M&G Securities Limlted PO Box 6108 Basildon SS15 SNA Investment advisor Telford Mann Limited Oakley House Headway Businèss Park 3 Saxon Way West Corby NN18 9EZ Page 2
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) TRUSTEES. REPORT {Incorporating the Strateglc Reporti FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees, who 8re also Directors for the purpose of company law, have pleasure in presenting their annual report together with the audited financial statements of the Charity and its subsSdiary for the year ended 31 December 2020. TRUCTURE GOVERNANCE AND MANAGEMENT anisation and Governance Processors and Growers Research Organ588thJn (infom)ally known as PGRO and referred io as such hereafter). is incorporated in England ané Wales and is a company limited by guarantee (registered number 005672321 and is a registered charity (number 002840771. 11 is governed by ils Memorandum and Artides of Assoaalion. Members and Board of Trustees The Board of Trustees comprisas the Chair and up to fourteen addition81 Trustee Directors. The Trustees are also the members of the organisation. The following Trustees have setved during the period= S P Marx (resigned September 20201 S W Bumstead $ S J Francis Ichaimian) $ ABury J P Fenton (resigned 81h Septembèr 20201 C S Stowe $ (VI Chalrmanl C G Renner $ F G Smith (resigned 81h September 20201 D J Sedgeley S J Portas JRSWard Professor D L Sparkes T J Yewbrey L J Cottey J M Hopwood J A Maguire (appointed 81h September 20201 S Denotes member of the Management and Finance Committee as at 31S1 DeceTnber 2020. No remuneratlon or benefrt was paid or grant8d to any Trustee. Recrul ment Ind tlon and Trainin of Trustees The Tmslees have regard lo the UK Charity Governance Code an(1 tske govemance of the ChatyVery seriously. New Trustees will be sourced from producers, processors and users of pulses and vegetable crops las identified in the Articles of Association). Recommèndations are made ahead of the AGM to ensure the overall balance of skills is maintained. All Trustees are required lo have skillsels r61evanl lo supporting the Charity's actNlties. An induction programme is in place for n8Y appointed Trustees which is revlewed and updatèd as approprlate. All Trustees are encouraged to be familiar wilh the practical work of the Charity and maintain an understanding of ils activities by attending the Charity's premises, events and meetings and engaging with stsff. The Trustees are mindful of the UK Charity Governance Code's recommendation that 8 maximum of e1ve Trustees is considered good practice. cUentlY there are thirteen Board Members {th& Memorandum and Articles of Association allow a maximum of fifteen). The Trustees consider a greater number allows for representation from all Ihe stakeholder groups the Charity engages with. The Trustees are also aware three of the Board Members have served for more than the nine years prescribed by the Code. Page 3
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Limited by Guarantee) TRUSTEES, REPORT {Incorporating Strateglc Report} FOR THE YEAR ENDED 31 DECEMBER 2020 Their reappointment is considered and approved providing they are still professionally active, they have indicated their willingness to continue and th8 Impact the loss of industry experiencè from the Board would cause if a suitable replacement could not be sourced. Liabilit Insuranc8 The Charity holds Directors and Officers Insurance which will indemnrfy the Dir8ctors against claims from third parties. It does not provide cover in the event a Trustee is proven to have acted eitherfraudulenlly 0rdish0nesy. ani lonal Stru ure The Board of TTUStees Is responsSble forthe management of PGRO'S affairs in accordance with ils Memorandum and Articles of Assoaalion. and meets regulady throughout the year to oversee the Charity's strategic dlreclion and financial probity. Additionally, the Management and Finance sub-committee {¢omprising the Chair. Viee-chalr. Chief Executive. Finance Manager and at least two other Board members) meets lo.. Consider strategic issues and make recommendations for full Board approval. Review and sel remuneration of Charity staff for full Board approval. Receive. examine and discuss financial reports, Assess business progress against objectrve8 and consider critical business risks, Consider health and safety issues. Consider capital investment and any other major expenditure for full Board approval, Consider all governance issues. The Chief Executive (appointed by the Trustees) manages the day-t& day operation of the charitable company. To ensure effective operations the Chief Exacutive and Senior Management Team have delegated authority for all operational matters. Related Partles The Charity has a wholly owned subsi¢Jl8ry, PGRO Research Limited, which donates its profits to PGRO ICh8rity) vla gift aid in perpetuity. OBJECTIVES AND ACTIVITIES EstablSshed in 1944. PGRO conducts innovatNe Tesearch and provides technic81 services on dry haNesled peas, vining lfreezing} peas and peas produced for canning operations and on other legumes and selected vegetables as appropriate. The Charity's primary objectives are to.. Provide and malnlaln a responsive and Independent technical service to producers of legumes and other selected vegetable crops Provide timely, accurate and well researched information Advance the SGience of agriculture by the iniliatlon. development and continuance of invosligatlons and applied research Ensure research is undertaken that is complimentary lo related studies elsewhore, whilst providing for regional environmental and agricultural practice diversity Collaborate in joint programmes as and when appropria18 Promote the dissemination and extension of research findings (either alone or with other organiSatn5 whose objectives are similar to those of the Charity) Page 4
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guarantèè) TRUSTEES, REPORT Ilncorporatlng the Strateglc Report) FOR THE YEAR ENDED 31 DECEMBER 2020 PGRO'S mission is to.. Pursue the provision of current advice for growers, the realisation of improved crop yield, qualty and economics. Facilitats open, accessible, reliable and relevant knowledge eKchange. Develop progressive and innovative approaches to crop research and development. Create and maintBin extensive and close links with growers, processors, trade and fundamental research communllies. In fulfilling its mission. PGRO works dosely with organlsallons which are part of the production andlor usage chain includlng= Growers Plant breeders Crop protection organisations Piocessing comp8nies Pulse cleaning organisalions Trading speclalists The Charity considers these links are important since it ensuies PGRO continues to effeclivety support UK legume pmduclion for both hom8 and export markets. Charitable objectives are mel through the provision of.. Industry approved applied research and development programmes as dlscussed at panel meetings Effective education and knowledge transfer activities delivered to schools. colge$, growers, agronomists and processors Delivery of knowledge and services benefitting both public and commercial customers Sponsorship of PhDs relevant lo legumes A strong UK agricultural sector creates employment and inward UK investrnènl. 11 is generally accèpted global crop production musl increase in order lo keep pace wlth projected worldwide population growth. Globally. demand for fcK)d is surpassing supply, and the availability of land SLJitab18 for agricultural produclion will be limiting factor. Therefore, increased agricultural productivity (i.e. producing more per he¢lar81 is an urgent requirement. Experts believe climate change will reduce crop yields and water avai12bilily in intemperate areas. thus creating increased dependency and pressure on agricultural production in temperalo regions of Europe and North America. Increased intensification needs to be sustainable in the long-temi. and agricultural research works lo towards providing a food supply that is secure and sustainable whilst having minimal environrnenlal irnpacl by producing crops which can help mitigate and adapt to climate change. PGRO undertakes applied. industry approved research and development programmes, focusing on.. Plant and soil-bome pests and diseases Soil health The value of legumes in crop rotstions Improved yield and quality in legume crops Data analysis and provision of science-backed information Environmental improvement I the above activities conlribule towards the achievement of the Charity's legal objectives as identified on the previous page. Page 5
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Cornpany Limited by Guarantee) TRUSTEES. REPORT (Incorporatlng the Strateglc Report) FOR THE YEAR ENDED 31 DECEMBER 2020 PGRO'S 8CtThiilies provide an important interface beeen farming and food industries. and the Ch8rity uses 8 variety of methods to ensure research Tesulls and recommendations are applied quickly and accurately via.. Articles and publications Grower meelingslworkshops Agronomy training PGRO website and social media Open days. seminars and presentstions of both Crnt and emerging issues PGRO remains dedicated to providing scientific research th8t contrlbules to the suslalnabilty of legume crops land other vegetable crops as approprlale), ané lo improve the yield and quality thereof. The Charlty has a highty skilled and well-respecled workforce. Stakeholder benefits come through improvernenls in quality, reliability and profitability of legume crops. Isk Assessment and Mana ement Thè Board ofTrustees is responsible lor ensuring Ih8re are effecllve and adequate rlsk managamenl and internal controls systems in place to manage the major risks lo which the Charity is exposed. The Risk Register (focusing on the key risk areas of governance, operattonal, financial, environmental and extemallregulaloryl, Kjenlifies the risks PGRO faces. prioritises them in tem of likelihood of occurrence. their potential impact and how they Can be mitigated. The Board recognis8S the Risk Register is a live document and r8gularly review.. The key risks the Charity Mayf8, likelihood of malerialisalion, likely impact and thè procadures required lo mlnimlse impact should they materialise Internal controls and procedures and their effectiveness to ensure the needs of the Charity are mel and compliance with externally issued guldellnes and statements of best practice. With regard lo Covid-19, the Charity operates according lo government and local guldelines and follows best practice w((h regard to social distsncing and hYgne, and undertook early discussions with stakeholders and employees which remains ongoing. Page 6
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Llmited by Guarantee} TRUSTEES, REPORT Ilncorporatlng the Strateglc Report) FOR THE YEAR ENDED 31 DECEMBER 2020 STRATEGIC REP ACHIEVEMENTS AND PERFORMANCE With over 70 years of research experience into legumes and other selected vegetable crops, PGRO has a widely recognised reputation as being one of the few remaining UK sources of sound, independent techn81 advice. al a time when food production, quality and provenance faces increasing scrutiny both nationally and inlernalion811y. Research underpins the vast majority of th8 work undertaken by the Charity, enabling discovery. creation. dissemination and knowledge preservation. PGRO aims to pursue the highest standards of research excellence by employing knowledgeable and dedicated stsff who are well respected by the industry. Through continued development and investment, PGRO supports a culture of inquiry and initiative, and beIVe$ in rese8r¢h that makes a differen. The Trustees believe il is vital the Charity continues to maintsin and demonstrate its independence. innovation and integrity. PGRO'S scientific activities encompass improvements in legume production such as developing higher yielding crops which are resillenl to climate change. pest and disease control with which to protect the environment and the importanco of soil health. PGRO has the specialist ski118 and knowledge to enable improved legume production, evalualK)n of variety and agrochemical performance and quality from field and glasshouse trials. Via PGRO'S knowledge exchange programmes, the benefits of new knowledge are communica18d lo farmers and growers and further lo the food industry reliant on produ¢liv8 agriculture. PGRO aims lo be at the forefront of legume crop innovalltsn. During 2020 PGRO continued lo deliver services in accordanc8 wh its researth objectives and effecllve5y delivered existing research projects including= Surveillance of virus diseases in UK pea crops - AHDB funded Horticulture strategic centS for field vegetables - AHD8 funded Fostering Sustainable Legume Based Famiing Systems and Agrifeed and Food Chalns in the EU ILEGVALUEI- part EU fijnded Transition Paths lo Sustainable Legume Based Systems in Europe ITRUEI- part EU funded Improving productivity in pea. bean and legume growing through advanced data analytics, machlne learning and Al tschniques IIUK funded) Genetic improvement of pea lo replace soy8b8an in diets of poultry and monogaslric livestock IBBSRC funded) Thè Charity, Insofar as funds permitted conducted in-house research areas such 8S.' senIng the efficacy of products designed to sts'mulate natural plant proces8es Cover crops grown beeen periods of regular crop Production with the aim of improving or proleoling soll health, structure and nutrient Capture Inter cropping whereby bNo or more crops are grown in dose proximity Plant populations lo maximise yield MolecLtlar legts for pests and diseases Page 7
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Limited by Guaranteè) TRUSTEES, REPORT {Incorporating the Strategic Report) FOR THE YEAR ENDED 31 DECEMBER 2020 Education is one of PGRO'S chariiable objectives and Is fulfilled by co-sponsoring a rolling programme of PhDs insofar as the proposals are relevant and complimentary lo PGRO'S overall research and development strategy. During 2020 the programmes of work comprised: Management of stem and bulb nematode in field beans (Harper Adams University- 3 years). Understanding and mitigating pea yield decline due lo foot-rot (University of Warwick- ended 20201- Development of novel seed treatments for grain legumes lo simultaneously Increase biological nSlrog8n fixation and Induce disease resistance (University of Stirling- ended 20201. Strategies lo optimise pollination of the UK field bgan crop (University of Cambrrdge- 4 years). Knowledge Iransf8r partnership Iunlversity of Nottingham- 3 years) Understanding and increased knowledge of bean seed fly biology to develop an integrated control strategy (Warwick University- 3.5 years. New 20201 During 2020 PGRO continued to provide advice and information and undertook knowledge transfer activities. The 2020 joint PGROISyngenta roadshows were held online due to Covid-19, bul proved as popular as ever enabling PGRO'S experts to infom) growers and advisers on the latest developments in pulse crop markets. agronomy and research. Advic& and information was distributed by many other sources such as onllne grower group meetings, articles, putrAications. crop bulletins and fact sheets, lo name just a few. PGRO'S website continues lo be an important interface with growers, breeders and the wider community, by providing valuable advice and knowledge transfer lo interested partes. The website is updated regularly as well as being subject to a major bi-annu81 review. Other social media methrxls (such as Twitter) 8re used lo interact with stakeholders. PGRO is actively involved with AHDB'S Monitor Farms la nationwide network of farms), bringing together groups of like-minded farmers willing lo share performance and best practis8 information in order to improve their businesses. Expetts from PGRO regularly liaSse Icurrenlly online due to Covi&191 with farms where pulses are grown lo offer advice and undertake knowledge transfer. PGRO is also actively involved with the Yièld Enhancement Nehork which connects agricultural organisations and farmers from the UK, Europe and beyond focusing on closing the gap bett88 current and pol8nllal yields in peas. This involvement will continue into 2021. FUTURE P NS PGRO will continue to be prlncipally gngaged in high quality applied agricultural research. The TTUStees recognis8 an important aspect of the Charity's work Is to contribute lo the competitiveness and sustainability of UK logum8 crop production. The Charity will continue lo respond to appropriate funding calls as they pertain to applied crop research, bul the Trustees are mindful that publicly available funding h8$ reduced in recent years, whilst the grant application process is mor6 competitive than ever. The Trustees are pleased that following the UK'S exil from the EU, the Charity can still apply for EU funding. Thus. PGRO will continue lo be available for collaborative research with EU organisations. The Trustees are cOnfent the Charity will continue to idenlrfy and apply for all appropriat8 grants by submitting innovative ideas which eMasiSe the importance of efficient crop production through the most appropriate technology. Commitments to collaborations with relevant Industry and academic partners remain an important aspect of the Charity's work in order to achieve added value from joint working and sharing access lo a wider base of skills and experience. Pag8 8
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) TRUSTEES, REPORT {In¢orporating the Strateglc Report) FOR THE YEAR ENDED 31 DECEMBER 2020 The Charity wlll. insofar as funds permit. continue lo expand Its co-sponsorship of relevant PhDs complimentary to the Charity's R&D strategy. The current strategic plan (approved in 20f8} covers 2019 - 2022. The key aspects therein will continue to be kept under review to ensure Ihgy are fil for purpose in the light of identified emerging risks lo the Charity and lo ensure PGRO remains a solvent, respected and vibrant organisalion with a strong identity. Provision of clear flnancial information continues to allowfor effective and timely decision-m8king al Managernent and Finance Committee level. and will continue to enable this group and thg Board to fully and effeclDrely CDntrc the business. The Charity will continue its investment in capital equipment to ensure the business remains at the forefront of innovative agricultural research. The Charity will continue to engage in knowledge transfer events and produce publicatlons and artides relevant lo the agricultural sector and wider audien8 as appropriate. The Twslees are maintaining a watching brief with ragard lo changes in UK agricultural policy following the UKS exil from the EU. The Basic Payment Scheme to farmers is lo be progressively phased out frorn 2021 to 2028 and all greenlng measures within the Common Agri¢ullural Policy will be scrapped. The replactrmeni Enmronmental Land Management Scheme aims to encourage farmers to lake steps lo improve the environment, animal health and welfare, and reduce carbon emissions. At present. th8 impact on UK cropping systems cannot quantified. The agricultural industry is of course well represented on PGRO'S Board. Their input and advice will be greatly valued. The decllning avallability of agro-chemicals will inevitably present challenges for growers and crop health in the future. PGRO sees this as 8n opportunity lo further promote and encourage searCh work in Its molecular laboratory. There is great potential for diagnostic and predictive research lo facilitate integrated pest management strategies on fams. PUBLIC BENEFIT The Truslees are sallsfled they have complied with their dLIty in section 4 of the Charilles Act 201110 have due ard to public benefit guidance published by the Charities Commission. PGRO'S main objective is to contribute to the advancement of the science of legume and other crops as approprlate by undertaking scientific research projects. Additional benefts derlved from the Charity meeting its main objective include the advancement of.. Educalionlknowledge Environmental improvementlprotection Innovalwe crop science and te¢hndogy are addressing pressures caused by climate change, global population growth and food security issues by increasing productivity, protecting the environment and conseNing resources. PGRO'S independent and applie¢J research into crucial legurne crops Iranslales directly into fam) practise. contributing lo improved quality, ylelds, soil health an¢J environrnenlally friendly pe51 and disease management. PGRO seeks to advance knowledge on all aspects of growing legurne crops from schools and colleges to farm advisers. growers and pro¢essors, covering aspects such as.. Seed treatment Plant populations Crop husbandry- rotation, culthiation. fertiliser usage, drilling, plant population, coritrol of weed pests, diseases and disorders, harvesting, drying and storage. Therefore. benefits arise from the aifvancement of education and environmental prolectionl improvement. Page 9
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Llmited by Guaranteè) TRUSTEES, REPORT (Ineorporating the Strateglc Report) FOR THE YEAR ENDED 31 DECEMBER 2020 FINANCIAL REVIEW Weather variability, trading volatility in the legume markets and the lack of availability of res98rch grants can all cause significant swings in the Charity's income year on year. Stock Market swings can also imp8Ct significantly on the year end valuation of the Ch8rity's investments. The Charity suffered from all of the aforementioned during 2020. Causing reserves lo decrease by £227.683 {2019= £259,038 increase). The decrease in 2020 was In large part due lo revaluation of the Charity's investments where a net unrealised loss £157.272 was posted. Investment in capital equipment was undertaken as planned. The main areas were: Machinery and equipment £24.4k Improvements lo facilities £14.5k The Trustees are ¢onfidenl that the direction and financial management of the Charity remains robust, and continually review expendiluTe levels to ensure value for money is achievtsd. The Trusl8&s continue to monitor and evaluate the evolving implications on the UK agricultural industry following the UK'S extt from the European Union. and lo consider any irnpact this may have on PGRO'S income streams. rinci al Fundln SoureÈ$ Incoming resour for the Charity and Its subsidiary for the year tolalled £1.2m12019.' £1.37m}, ofwhich £0.1m related lo restricted funds12019.' £0.2ml. Principal sources of income were derived from levy on legume crcys traded ex-farm end research grants. The Trustees recognise the Importance of dfverse income streams forth8 financial health of the Charity and addlllonal income came from.. Conlr8Ct trials Membership fees Conference facilities Technical se1ceS All expenditure during the year was incurred in furtherance of the Charl$ obleclives. There are currenlty no significant futijre factors which the Trustees consider will affect financial performance. Covld-19.. The Charivs actlvlfjès meant h was exempt from full closure and ITav&l restrlclions allowing the majority of operations to continue throughout 2020. As previously mentioned. discussions with stakeholders were initiated al an early stage and continued throughout the year. Work on a small number of projects was Curtailed and hence funding was deferred lo 2021. The conference centre facllilles closed lo external bookings e8rW in 2020, resulting in a loss of income. The Trustees estimate lost income from all sources amounted to approximately £34k. Stock market turbulence during 2020 has caused the Charivs Investments to fall in value an(t hence the value of ils reserves. Regular updates from the FLJnd Managers allow the Charity to monitor the situation closely. By consldering expected future income versus future financial obligations. the Trustees have a reasonable expectation that PGRO has adequate resources to continue in operational exisience for the foreseeable future. Accordingly, they continue lo adopt the going concem basis in preparing the annual reports and accounts. Page 10
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guarantee} TRUSTEES, REPORT {Incorporatlng the Strateglc Report> FOR THE YEAR ENDED 31 DECEMBER 2020 Investment Polic The Investment policy adopted by the Board in 2015 is due for review In 2021 and factors to be considered will Include.. The current economic climate Future plans Contingenaes for the variability of levy recelpts Availability of grant funding Covid-19 and stock market implications The Charity currently holds several long-teTm investments from which income is used lo directly contribute lo the Charity's objectives. The Charity only invests in products which the Trustees deem to have dkje regard lo social. environmental and elhical issues. The Trustees meet at least annuallywilh representatives of the Fund Managers lo review investment risk. incorne generation and capit81 growth. R8seNes Polic The reserves policy adopted by the Board in 2015 was reviewed in 2020. the review considered factors such as-. The natLJre of current activities and related income and expenditure streams The requirement lo match variable income with any fixed expenditure commilmgnts Any requirement to fulfil longer term liabilities Future plans including investment in fixed asset additions or replacements The overall business climate and the rkS faced by the Charity The Twste8s regulaTly consider the risk to the Charity of any significant loss of income and also the risk ol any unforeseen expenditure. thereby acknowledging the relationship beeen the risk management and serveS policies. As previously mentioned. the effect of the UKexil from the European Union on UK agriculture and related research is as yet unknown. Therefore, the Tnjslees deem il prudent lo hold sufficient reseryes lo miligale any potential neg81ive impact on future income in order for the Charity to be able to achieve its obj8CttV8S. At 31SI December 2020. unrestricted funds were £2.3m. The Trustees aim to maintsin frea reserves In unreslricled funds al a lovel equating lo 6 months of unreslricled charitable expenditure in so far 88 these funds are not committed to or invested in tangible fixed assets. The Trustees consider this level w511 provide sufficient funds to.. Appty for extem81 research grants (where match funding is a frequent requirement) Participate in external research where in-kind contributions are required Consider further sponsorship of PhDs with universities Further develop laboratory and molecular facilities Ensure the Charity's activities are maintained by und8rtaklng Industry approved research and development where extemal funding cannot be obtained Ensure season81 variations of cash inflows due lo inherent uncertainty inlgvy receipts are mitigated Replace and extend capital assets as necessary FLJifil long term liabilities Allow for medium lo long 18rm planning At 31sl December 2020 the Group had total reserves of £2.3m I£0.4m iri fixed assets and £1.9m in investments and net working capit811. Page 11
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guaranteè) TRUSTEES, REPORT {Incorporatlng the Strateglc Report) FOR THE YEAR ENDED 31 DECEMBER 2020 Disclosure of Intomation to auditors Each of the persons who are Tnjslees at the lime when this Tru5tees' Report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit infom)alK)n of which the charitable Group's auditors are unaware. and that Trustee has taken all the steps that ought to h8ve been taken as a Trustee in order to be aware of any relevant audit information and lo establish that the charitable Group's auditors are aware of that information. This report was approved and aulhori5ed for issue by the Trustees on i try. LO LI signed on its behalf by.. and S J Francis Chairrnan Page 12
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limlted by Guarantee) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees (who are also the D1CtOrS of the Charity for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial slalements in accordance with applicable law and United Kingdom Accounting Standas (United Kingdcmn Generally Accepted Accounting Practice}- Company law requires the Trustees to prepare financial slalemenls lor 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 slate of affairs of the Group and the Charity 8nd of their incoming resources arKI application of resources, including their income and expenditure. for that period. In preparing these financial statements. the Trustees are required to". select suitsble accounting polScSes an¢J then apply them consislenlly. observe the methods and principles of the Challli8s SORP (FRS 1021., make judgements and accounting eslimales that are reasonable and prudent- state whether applicable UK Accounting Standards IFRS 102) have been followed. subject lo any material departures disck)sed and explained in the financial slatem8nts', pr8pare the financial statements on the going concern basis unless it Is Inapproprfale to presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the Group and the Charity's transactions and disclose wSlh reasonable accuracy at any lime the financial
sition of the GTOUP and the Charity and enable them lo ensure that the financial stslements Comply with the Companies Act 2006. They are also responsible for saftrguarding the assets of the Group and the Charity and hence for taking asOnable steps for the prevention and detection of fraud and other irregLJlarilies. In so far as the Trustees ar8 aw8re'. thera is no relevant audll infomialion of which the charitabl8 companVs auditor Is unaware., and the Trustees have taken all steps that they ought lo have taken lo make themselves aware of any relevant audit inforrnalion ané to estsblish that the auditor is aware of that infomiation. Approved by Order of the Membèrs of the Board of Trustees and signed on its behaLf by.. S J Francls Chairman Date.. lil Q)ILI P8ge 13
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guarant•¢l INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF PROCESSORS & GROWERS RESEARCH ORGANISATION Opinion We have audlled the Trustees, report of Processors & Growers Research Organisalion (the 'Charitll and ils subsidiaries Ilhe 'Group'l for the year ended 31 December 2020 which comprise the Consolidated Stslement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet. the Consolidated Statement of Cash Flows and the related notes, including a summary of signtficanl accounting policies. The financial reporting framework that has been applied in Ihelr preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Stsndard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practi). In our opinion the Trustees, port.. give a true and fair view of the slate of the Group's and of the parent charitable compan3 affairs as at 31 Dembr 2020 and of the Group's incoming resources and application of resour¢88, including its income and expenditLJre for the year then ended- have been properly prepaTed in accordance with United Kingdom Generally Accepted Accounting Practice," and have been prepared in accLJrdanc8 with the reqU1ments of the Charities Act 2011. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) IISAS {UKII and applicable law. Our Sponsibl1111eS under those standards are further described in the Auditors. responsibilities for the audit of the Trustees. report section of our report. We are independent of the Group in accordance with the ethical requirèments that are relevant lo our audit of the Truste&s' report in Ihe United Kingdom. including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilFties in accordance with those requirements. We believe that the au¢Yil evldence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Con¢lusions relating to golng coneÈrn In auditing the financial statements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of tha financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relatlng to events or conditions that, individually or collectively, may cast significant doubl on the Group's or the parent charitable company's ability lo continue as a going GOnM for a period of 8t least 1ve months from when the financial ststemenls are authorised for issue. Our responsibilities and the responsibilit$ of the Trustees wlh r8specl to going concern are described In the relevant sections of this report. Page 14
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF PROCESSORS & GROWERS RESEARCH ORGANISATION (CONTINUED) Other infom)atlon The fruslees are responsible for the other infomialion. The olher information comprises the information included in the Trustees, Annual Report, other than the Trustees. report and our Auditors, Report Ihereon. Our opinion on the Trustees, report does not cover the other information and we do not express any form of assurancè rA)nclusion thereon. In connection whh our audit of the Trustees. report. our responsibility is lo read the other infom18tion and. in doing so. consider whether the other infornialion is materially inconsislenl with ihe Trustees. report or our knowledge obtained in Ihe audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misslalements, we are required lo determine whether there is a malorial misstalemenl in the TTUStees' report or a material misstatement of the other information. If, based on the work we have performed. we conclude that there is a material mlsstslernent of Ihls other infomi81ion, we are required to report that fact. We have nothing lo report in Ihls regard. Matters on whl¢h we ar8 required to report by exception We have nothing lo report In respect of the following matters where the Charilles {Accounts and Reports) Regulations 2008 requires us lo report lo you if. in our opinion.. the infomiation given in the financial statement is Snconsislenl in any material respect with the Trustees. port- or the charilablg company has not kept adequate accounllng records., or the financial slalements are not in agreernent with the accounting records and retums.. o we have not received all the infomiation and explanations we require for our audit. Responsibilltles of Trustees As explained more fully In the Ststemenl of Trustees. Responsibilities, the Tnjstees (who are also the Directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair wew, and for such internal control as the Trustees determine is necessary to enable the preparation of Trustees, report that are free from maleri81 misststemenl, whether due lo fraud or error. In preparing the Trustees, report, the Trusle8s are responslble for assessing the Group's and the parent charitable companys 8bility to continue as a going concern, disclosing. as applicable, matters related lo going concem and using the going concem basis of accounting unless the Trustees either intend to liquldale the Group or the parent charitable company or to cease operations. or have no realistic allernalive bul lo do so. Page 15
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guar8nteel INDEPENDENT AUDITORS. REPORT TO THE IAEMBERS OF PROCESSORS & GROWERS RESEARCH ORGANISATION {CONTINUEDI Audltors. responsibilltles for the audlt of the financial statements We have been appointed as auditor under section 151 of the Charilies Act 2011 and report in acLord8nce with the Act and relevant regulations made OT having effect Ihereunder. Our objectives are to obtain reasonable assurAn¢e about whether the Trustees, report as a whole are free from material misstatement. whether due to fraud or error, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance wth ISAS IUKI will always delecl a material misstatement when it exists. Misslalements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected lo influence the economic decisions of users taken on the basis of these Trustees, report. Irregulari118s, including fraud, are Instances of non-compllancè with laws and regulations. We design procedLtres in line with our responslbililies. outlined above, to delecl material misslalements in respect of irregularities, including fraud. The extent lo which our procedures are capable of delecling irregularities. indudlng fraud is detsiled below.. Enquiry of management and those charged with govemance around actual and potential lilig8tion and claims.. Enquiry of entity staff to identify any instanos of non-complSance with laws and regulallon8; Performing audit work over the risk of management override of controls. including lesling of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias., Reviewing minutes of rneelings of those Charged with govemance., Reviewing financial statement disdosures and lesling to supporting documentation to assegs compllance th applicable laws and regulations. Because of the inherent limlt8tlons of an audit, there is a risk that we will not delecl all irregularthes. including those leading to a malerlal misslatemenl in the financial statements or non-compliance wlh regulation. This risk increases the morè that compliance wllh a law or regulalk)n is removed from the events and transactions reflected in the financial statements, as we will be less likety lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error. as fraud involves intent5onal concealment. forgery, collusion, omission or misrepresentation. A further descriptlon of our responslbililies for the audll of the Twslees. report is located on the Financial Reporting Council's websit8 al.. www.frc. uklauditorsres Auditors, Report. "fjes. This description forms part of our Page 16
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Llmited by Guarantee} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF PROCESSORS & GROiVERS RESEARCH ORGANISATION (CONTINUED) Use of our report This report is made solely lo the charitable companls Trustees, as a body, in accordance with Part 4 of the Charllies (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale to the charltable comp8nVs Trustees those matters we are required to stste to them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responslbllily lo 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 foTmed. Rebecca Hughes Bsc IH¢nsl FCCA (Senior statutory Auditor) MHA Maclntyre Hudson Chartered Accounlanls Statutory Auditor 1 The Forum Minerva Business Paik Lynch Wood Pelerborough PE2 6FT Date.. 30 June 2021 MHA Maclntyre Hudson are eligible to act as auditors In terms of sedion 1212 ofthe CompanSes Act 2006. Page 17
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Umlted by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 OECEMBER 2020 Unrestrictèd funds 2020 Restricted funds 2020 Total funds 2020 Total funds 2019 Notg Income from: Charitable activities Other trading activities Investments Other income 553,370 457,356 51,637 3,118 133.894 687,264 457,356 51.637 3.118 792,581 518,875 58,809 2.103 Total incom¢ Expenditurg on: Raising funds Charitabl8 activities 1.065,481 133,894 1.199,375 1.372.368 320.960 813.925 320.960 948,826 3Yf,722 903,284 9.10 134.901 T¢tal expendlture 1.134,885 134,901 1,269.786 1,275,006 Nel Ilossesygains on investments 15 (157.272) 1157,272) 161,676 Net Iexpenditurellinme 1226,6761 {1.Ix171 1227.683} 259,038 Transfers between funds 18 (1,0071 1,007 Net movemènt in funds {227,683) 1227,6831 259,038 Re¢onciliatlon of funds: Total funds brought forward Nel movement in funds 2.541.598 1227,6831 2,541.598 1227.683) 2,282.560 259,038 Total funds carried for•vard 2,313.915 2,313,915 2,541,598 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. Al income and expendlture derive from continuing activities. The notes on pages 22 to 48 form part of these financlal statements. Page 18
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guaranteè) REGISTERED NUMBER: 00567232 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2020 2019 2019 Note Fixed assèts Tangible assets Investments 14 15 355,663 1.099,105 394.435 1,256,377 1,454,768 1,650,812 Current assets Debtors Cash 8t bank and In hand 16 21 433.000 697.202 388.091 764,447 1,130.202 1,152.538 Creditors.. amounts falling due within one year 17 {271,055} 1261.752) Net curront assets 859,147 890,786 Total nèt assets 2.313,915 2.541,598 Charlty funds Unrestricted funds 18 2.313,915 2,541,598 Total funds 2,313.915 2.541.598 The Charity was entitled to exemption from audit under section 477 of the Companies Act 21)06. The Members have not required the entity to obtain an audit for the year in question in accordance wlh sectlon 476 ofthe Companies Act 2006. However, an audit is required in accordance with secllon 151 of the Charities Act 2011. The Trustees ackntsedge their responsibililitrs for complwng wilh the requlrements of the Act wtth respect to accountlng records and preparaOn of finarrial statements. The financial statements have been prepared in aGcordance with the provisions applicable lo entities subject lo the small companies regime. The finan lal ststements were approved and authorised for issue by the Trustees and signed on thelr behalf by.. S J Francis Chairman Dale.. iflklii The notes on pages 22 to 48 form part of these financial statements. Page 19
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) REGISTERED NUMBER: 00567232 CHARITY BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2020 2019 2019 Note Fixed astS Tangible assets Investments 14 15 355.663 1.099.106 394,435 1,256,378 1,454,769 1,650,813 Current assets Debtors Cash at bank and in hand 16 774,422 376,116 845,428 348,812 1.150,538 t. 194.240 Creditors- amounts falling due within one year 17 1291,392) (303.455) Net ¢urrent assets 859,146 890,785 Total nat assets 2.313.915 2.541,598 Charlty funds Unrestricted fijnds 2,313,915 2,541,598 Total funds 2.313.915 2,541,598 The Charity wes entitled to exemption from audit under section 477 of the Companies Act 2006. The Members have not roquired the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. However, an audll is required in accordance with sectlon 151 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act wllh respect lo accounting records and prèparation of financial statements. The financial statements have been prepared in accordanc8 wlth the provisions applicable to enlilies subject to the small companies regime. The financial state enls were approved and authorised for issue by the Trustees and signed on their behalf by: SJFr Chairman Dale- 1s1&111 The notes on pages 22 10 48 form part of these finanaal statements. Page 20
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Limited by Guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 Note Cash flows from t)peratiTrg activities Nel cash used in operating activities 20 179.962) 100,584 Cash flows from investing activltles Inveslrnent income preedS from the sale of tangible fixed assets Purchase of tangible fixed assets 51.637 58,809 2,001 (56,455) 14 (38,920) Net cash provided by investing a¢tlvltles 12,717 4,355 Change cash and cash èqulvalents in the year Cash and cash equivalents at the beginning of the year 67,2451 764447 104.939 659,508 Cash and cash equlvalents at the end of th• year 21 897.202 764,447 The notes on pages 22 to 48 form part of these financial statements. Page 21
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 General infom)atlon The Charity Is a company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 284077) and Registrar of Companies (Company Registration Number 00567232} in England and Wales. The address of the Tegislered offic8 is given in the Charity information on page 1 of these financial ststements. The nature of th6 Charitys operations and princlpal actlvlty is the provision of scientific research In relation lo legume crops. In the event of the Charlty being wound up, the liabi1Sty In respect of Ihe guarantee is limited to £2 per Member of the Charity. Accountlng pollcles 2.1 Basss of preparntlon of financlal statements The financial slalements have been prepared in accordance rith the Charflles SORP (FRS 1021- Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Processors & Growers Research Organisat)n meets the deflnltton of a PLtblic benefit entity under FRS 102. Assets and liabilities are inilialty recognised al historical cost or transaction value unless olherwse stated in the relevant accounting policy. The financial statements are presented in pound sterling which is the funotional curr8ncy of the GTOUP and èr& rounded to the nearest pound. The Consolldated Statement of Financial Activities ISOFAI and ConsolKlated Balance Sheet consolldate the financial statements of the Charity and its subsidiary undertaking. The results of the subsi¢Jiary are consolidated on a line by line basis. The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statem8nt of Financial Activities in thes8 financial $tat8ments. The income and expenditure account for the year dealt with in the accounts of the Charty was deficit of £227,68312019- surplus of £259,038). Page 22
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEM8ER 2020 ACCOUnng pollcles {contlnued) 2.2 Going concem The financlal statements have been prepared on a golng concern basis. The Trustees have considared relevant information, including the annual budget, forecasl future cash flows and the impact of subsequent events in maklng their assessment. In response lo the COVID.19 pandemic, the TTUStees have performed a robust analysis of forecast future cash flows tsking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures lo assist in mitigating the impact. Based on these assessments and havlng regard to the reSoUrS 8vailable lo the entity, the Trustees have concluded that therè is no material uncertainty and that they can continue to adopt the going concern basis in preparing the Trustees Report and accounts. 2.3 Tumover Turnover cA)mprises revenue recognised by the Group in respect of goods and seNices supplied during the year, exclusive of Value Added Tax and trade discounts. 2.4 Income All incorne is recognised once the Group has enlillement to the income, it is probable that the income will ba received and the amount of income receivable can be measured reliably. Membership fees are recognised when the Group has enliuemenl to the income. Rent ané meeting income is recogn15ed when recewable. L8vy income is recognised when receivable. with the level of charges reviewed annually by reference to work done. Research and technical IrOme, technical seNices and publications income is recognised by reference to work done. Revenue grants are credited as income when they are recelvable provided conditions for receipt have been complied with. unloss they relate to a specified future period, In which case they are deferred. Specrfically wilh gardS to EU True Project and EU Leg Value grant income. such income is recognised in line with related expenditure as per the tems of the grants. Income tax recoverable in relation to donations recelved under Glft Aid or deeds of covenant is reeognised al the time of donation. Investment income is recognised when received and comprises interest on fixed interest sacurllies and bank deposits. Other income 15 recognised in the period in which il Ss receivabla and to the extent the goods have been provlded or on completion of the service. Page 23
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting pollcles Icontlnued) 2.5 Expenditure All expenditure is accounted for on an accruals basis. Expenditure is recognised once there is a legal or conslruclive obligation lo transfer economic benefil to a third party, it is probable that a transfer of economic benefits will be required in sethement 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 undertaklng each activity- Direct costs attributable to a single activity are allocated directly lo that activity. Shared costs which contribute lo MO than one activity and support costs which are not attributable to a single 8Ctlwly are apportioned befvjeen those acliviÉies on a basis consistent with the use of resources. Central staff costs are allo¢8led on the basis of time spent. and depreciation charge5 allocated on the portion of the ass81's use. Support costs are those costs incurre(I directly in support of expenditure on the objects of the Charity. Support costs have been allocated to each activity on the folloring basls, based on an estimate of staff time spent on each actlvSty'. Research and development Knowledge transfer 70.270A 29.73% 71.630 28.37% Govemancts costs a costs incurred in connection with the administration of the Group and Complian with constitutional and slalutory requirements. Costs of rarsing funds comprise the costs of trading of the wholly owned subsidiary, PGRO Research Limited. Research and development expenditure 18 recognised as an expense in the period in which 11 Is Sncurred. All expendilure is incluswe of Srrecoverable VAT. 2.6 Intèrest r8c•lvabl• Interest on funds held on deposit is included when recelv8ble and the amount can be measured reliably by the Group,. Ihls is normally upon nolificalion of the interest paid or payable by the instslution with whom the funds are deposited. 2.7 Levy funded research The extemal cost of levy funded pulses research programmes 18 recognised in the Consolidated Ststement of Financlal Advities in the year that the research Is undertaken. 2.8 Taxation The Charity is exempt from corporation lax as all of its income is charitable and is applied for charitable purposes. The trading subsidiary, PGRO Research Limited, gift 8ids all tsx8ble profits to the Charity under a deed of covenant. Page 24
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng pollcies Icontlnued} 2.9 Tangible red ass¢ts and depre¢lation Tangible fixed assets costing £500 or more are capStalised and recognised when future economic benefits are probable and the Cost OT value of the asset can b8 measured reliably. Tangible fixed assets are Initially recognlsed al cost. After recognition, under the cost model, tangible fixed assets are measured al cost less a¢cumulaled depreciation and any accumulatsd Smpairment losses. All costs incurred lo bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. A review for impaimienl of a fixed asset is carried out if events or changes in drcumstances indic8te that the carrying value of any fixed asset may nol be recoverable. Shortfalls bettmeen the carnwng value of fixed a$5els and th8ir recoverable amounts are recognised as impairments. Impairment losses are recognised in the Consolidated Slalemenl of Financial Activltles. Depr¢ci81ion is charged so as to alloeale the cost of tangible fixed assets less their residual v81ue over their estimated useful lives. using the straighl-llne method. Depreci8tion is provided on the following bases.. Long-temi leasehold propety Plant and machinery Motor vehicles offi equipment Computer equipment Site development Over the life of the lease 150A on cost 20% on cost 150/0 on cost 300A on cost 10% on cost 2.10 Investments Fixed asset investments 8re a form of financial instrument and are initially recognised al their transaction cost and subsequently measured al fair value at the Balance Sheet dale, unless the valuè cannot measured reliably in which case it is measured al cost less Impaimienl. Investment gains and losses, whether realised or unrealised, are combined and presented as 'N8t gainsl(losses) on investments, in the Consolidated Statement of Financial Activities. Investments in subsidiaries are valued al cosl1oss promsion for impairment. 2.11 Debtors Trade and other debtors ar8 recognised al the setdèment amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.12Cash at bank and in hand Cash at bank and in hand includes cash and short-lerm highly liquid investments a short maturity of three months or less from the date of acquisitk)n or opening of the deposit or similar account. Page 25
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limltfjd by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng pollcles Icontlnuedl 2.13 Liabilities and provislon3 Liabilitses are recognised when there is an obligation al the Balance Sheet dale as a result of a past event, it Ss probable that a transfer of economic benefit will be required in settlement, and the amount of the setdement can be estimatsd reliably. Liabilities are recognised al the amount that the Charity anticipates it will pay lo settle the debt L* the amount it has received as advanced payments for the goods or services it must provi(J8. Provisions ere meBsured al the best estimate of the amounts required lo settle the obligation. Where the effect of the time value of money is material, the provision is based ot) the present value of those amounts, discounted al th6 pre-tax discount rale that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial AGtivili8s as finance cost. 2.14 Financlal instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised al transaction value and subsequently measured at their settlement value with the exception of bank k>ans which ar8 subsequently measured at amortised cost using the effective interest method. 2.15 Operating leases Rentals paid under operating leases are charged lo the Consolidated Statement of FinancSal Activities on a slraighl line basis over th8 lease term. 2.16 Penslons The Group operates 8 defined contribution pension scheme and the pension charge represen18 the amounts payable by the Group lo the fund in respect of the year. 2.17 Fund accounting General funds are unreslricled funds whlch are 8vailable for US8 al the dlscrelion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Designated funds comprise unreslricled funds that havo been sel aside by the Trustees for particular purposes. The aim and usa of each designated fund is set out in the note8 to the financial statements. Reslricled funds are funds 1¢h are to be used in accordance with specific reslriclions imposed by donors or whth have been ralsed by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. Tho aim and use of each reslri¢ted fund is set out in the notes lo the financial slalements. Investment Income, gains and losses are allocated to the appropriate fund. Page 26
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Crltlcal accountlng estimates and areas of Judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumption5'. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will. by definition, seldom equal the related actual results. The estimates and assumptions that have a signrficanl risk of causing a material adjuslmenl lo the carrying amounts of assets and liabilities within the next financial year are discussed below. Expected life of tsngible fixed assets Support cost allocation. The Trustees considor that the expeded useful lives of tangible fixed assets and support cost aliocalions are appropriate. Analy81s of income from charltablo actlvlties- by fund Unrestrlcted Restricted funds funds 2020 2020 Total funds 2020 Research and development Knowledge transfer 409,727 143,643 99,138 34,756 508.865 178.399 Total 2020 553,370 133.894 687.264 Unrestricted funds 2019 Restrictsd funds 2019 Totsl funds 2019 Research and development Knowledge transfer 415.026 135,423 182,562 59.570 591.588 194,993 Total 2019 550,449 242, 132 792,581 Page 27
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Analysis of Income from charltable actlvltles- by type Unrestricted Restrlcted funds funds 2020 2020 Total funds 2020 Membership and levy fees Grants receivable Resear¢h and lethnical income Technical services and publications 539.502 539,502 133,894 3.763 10.105 133.894 3,763 10.105 Total 2020 553,370 133,894 687.264 Unrostricfed funds 2019 Rostrict8d funds 2019 Total funds 2019 Membershlp and levy fees Grants receivable Research and technical income Technical services and publications 538,578 538.578 242,132 2,221 9,650 242, 132 2,221 9,650 Total 2019 550,449 242, 132 792,581 Page 28
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Trading activitie$ 2020 2019 Charlty trading Income Trading subsidiary 457,356 518,875 457,356 518,875 Charlty tradlng expendSture Trading subsidiary- Diiect costs Trading subsidiary- Support costs 1277,410} (315,364) 43,5501 (56,358) 1320.9601 (371,722J Net income from trading activitie8 136,396 147, 753 The wholly owned trading subsidiary, PGRO Research Limited, is incorporated in England and Wales (Company Registration Number 075838221 and pays all of its profits to the Charity under the gift aid scheme. PGRO Research Limited undertakes the trading activities of its charitable company parenL Processors & Growers Research Organisab'on. A summary of the flnancial performance of the subsidiary in isolation is above. In 2020 and 2019, 811 incorw and expendlture from trading actlvities was to I from unreslricled funds. The transfer under gift aid of the trading profits of PGRO Research Llmited as a dislribtjtion to the Charity was £136,39612019- £147,153). Page 29
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Income from investments Unrestricted funds 2020 Total funds 2020 M&G investments and Tellord Mann investment income Bank interest receivable 51,445 192 51,445 192 Total 2020 51.637 51,637 Unresfricled funds 20Y9 Tofal funds 2019 M&G investrnents and Telford Mann inv88lment income Bank interest receivable 58,669 140 58,669 140 Tolal 2019 58.809 58.809 other income Unrestricted funds 2020 Total funds 2020 Other income 3.118 3,118 Unrestricted funds 2019 Total fvnds 2019 other income 2, 103 2,103 Page 30
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Llmited by Guarant¢&l NOTES TO THE FINANCJAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Analysis of expenditure on charltable actlvltles- by fund Unrestricted Restricted funds fund$ 2020 2020 Total funds 2020 Research and development Knowled9e transfer 567,376 246,549 134.901 702.2TT 246,549 Total 2020 813,925 134.901 948,826 Unrestrlcted lunds 2019 Restricted funds 2019 Totel funds 2019 Research and development Knowledge transfer 429,341 222.461 251,482 680.823 222,461 Total 2019 651,802 251,482 903,284 Page 31
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Llmlted by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 10. Analyslg of expendlture on chaTitabl8 actlvltles - by type Activitles undertaken directly 2020 Support costs 2020 Totsl funds 2020 Research and development Kno%edge transfer 541.811 178,656 160,466 67.893 702,277 246,549 Total 2020 720.467 228,359 948,826 Activifies undertaken directly 2019 Support costs 2019 Total funds 2019 Research and development Knowledge transfer 541,662 167,354 139, 161 55,107 680,823 222,461 Tot812019 709,016 194,268 903,284 Page 32
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 10. Analysis of oxpenditure on charltsblg actlvltles - by type (continugd) Analysis of dlrect costs Research and Knowledge development transfar 2020 Total funds 2020 2020 Stsff costs Depreciation Project costs Other staff costs Office running costs Slalionery, 8dvertising. postage 8nd equipment hir8 Travel and subsistence 230.247 55,795 233,707 2,175 917 97.415 13,488 31,418 921 917 13,473 21,024 327.662 69.283 265,125 3,096 1,834 13.473 39.994 18.970 Total 2020 541,811 178,656 720,467 Reseafrrh and Knowledge developmenl transfer 2019 2019 Totsl funds 2019 Staff costs Depreciation Project costs other staff costs Office running costs Stslionery, advertising, postsge and equlpment hire Travel and subsistence 227,216 51.829 242,817 2,007 856 89.974 13, 150 32. 147 794 317, 190 64,979 274,964 2.801 t. T12 8, 741 39.229 856 8. 141 22.292 16.937 Tolal 2019 541,662 167,354 709,Of6 Page 33
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 10. Anatysis of expenditure on charltable activltles - by type (eontinu¢d) Analysis of support ¢05ts Research and Knowledge development transfer 2020 2020 Totsl funds 2020 Staff costs Depreciation Other staff costs Office running costs Stationery, advertislng, postsge and equipmènt hire Repairs and maintenance Travel and subsislen Professional fees Govemance costs 99.876 5.909 3.675 31,540 10,348 3,013 242 1.183 4,680 42,257 2,500 1,555 13,344 4,379 1,274 103 501 1.980 142,133 8,409 5,230 44.884 14.727 4,287 345 1.684 6,660 Totsl 2020 160,466 67,893 228,359 Research and Knowledge developmenl transfer 2019 2019 Total funds 2019 Stsff costs Depreciation Other staff costs Office running costs Slalionery, advertising, postag8 and equlpmenl hire Repairs and maintenance Travel and SLJbsislence Professional fèes Profit on disposal of fixed assets G0Veman costs 77,520 8, 135 3,807 30. T65 7.361 5.903 460 1.179 (396) 4.427 30.697 3,221 1,508 12, 183 2,915 2.337 182 467 (156) 1. 753 108,217 11,356 5,315 42,948 10,276 8,240 642 1,646 (552) 6,180 Total 2019 139, 161 55,107 194.268 Page 34
PROCESSORS & GROVERS RESEARCH ORGANISATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 11. Audltovs r•muneration 2020 2019 Fees payable lo the Charitys auditor for the audlt of the Charlty's annual accounts and ils subsidiaries 6,000 7,000 Fees payable lo the Charity's auditor in respect of: Atl non-audll services not included above 660 1,840 12. Staff c03ts Group 2020 Group 2019 Charity 2020 Charily 2019 Wages and salaries Social security costs Pension costs 554,014 64.181 44.385 495.367 55,816 40,228 361.229 64,181 44,386 316,984 62,813 45,610 662,580 591.411 469,796 425,407 Further stsff costs are induded wilhin cost of sal88 of the trading subsidiary PGRO Research Limited which tolalled £35.33912019 - £81,581), which are present wf(hin the overall £320,96012019 - £371,722) Charity trading exp&nditure per Note 6. These are not Included above as the table only surrmarises the admini%lralion expenses element of staff costs of the subsidiary. Total staff costs of the Group therefore lolalled £697.920 (2019- £672,992). Totsl staff costs included in the trading subsidiary PGRO Research Limited for the year lotslled £228,124 12019 - £247.5851. The 8verage number of persons employed by the Charity during the year was as follows: Group 2020 No. Group 2019 Management and administration Direct charitable 16 18 19 21 Pagè 35
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 12. Staff costs (contlnuedl The number of employees whosè employee nefft8 (excluding employer pension costs) exceeded £60,000 was.. Group 2020 Group 2019 In the band £70,001 - £80.000 In the band £80,001- £90.000 The Key M8nagemenl Personnel of the Group are the Trustees and the six Senior Managers. Ing the CEO, Ihe Finance Manager and the four Principal Technical Officers. The Trustees are not remunerated. The total of employer benefits. including employers soclal security contributions. recgived by K8y Manauement Personnel of the Group was £348,62512D19- £333,4521- 13. Trustoes. r•muneratlon and expensas During th& year, no Trustees received any remuneration oi other benefits (2019- £NIL). During the year endeil 31 Dernber 2020, no Trustee expenses have been incurred (2019- £NILJ. Page 36
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Llmited by Guarante•l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 14. Tanglble fixed assets Group and Charty Long-temi leasehold Plant and property machinery Office and Motor computer Slte vehiclès equipmant development Total Cost Al 1 January 2020 Additions 284.472 376,791 23,550 32,490 132.498 246,144 1.072.395 14,525 38,920 At 31 December 2020 284,472 400,341 32,490 133,343 260,669 1,111.315 Deprè¢iation At 1 January 2020 Charge for the year 112,886 2,768 249.167 42.305 28,136 2,698 124,860 5.643 162,911 24,278 677,960 77,692 At 31 December 2020 115,654 291.472 30,834 130,503 187.189 755.652 Net book value At 31 December 2020 168,818 108.869 1,656 2,840 73,480 355,863 At 31 Decamber 2019 171.586 127,624 4.354 7.638 83,233 394,435 The tangible fixed assets are held for the direct furtherance of the Charity's objects. Paga 37
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 15. Flxed asset Investments Ll$ted securlties Group Falr value At 1 Janu8ry 2020 Revaluations 1.256,377 1157.272) At 31 December 2020 1,099,105 Shares In group undertaklngs Llsted securitles Charity Total Cost or valuation AI 1 January 2020 Revaluations 1,256.377 1157.2721 1,258,378 (157.2721 At 31 December 2020 1,099.105 1.099.106 Group investments at fair value comprlse: 2020 2019 UK common investment funds 1,099.105 1.256,377 1,099,105 1,256,377 All the Group fixed asset investments are helij in the UK. The UK common Investment funds are indirectly held by fund manager M&G Investments and Tejford Mann Investments and 8re all included wrthin unrestricted funds. Investments are re-stated at their lair value each year end. Page 38
PROCESSORS & GROWERS RESEARCH OROANISATION (Aeornpany Llrniiod byGuarnntq•l NOTES TOTHE FINANCLsTATEmENTs FOR THÉVEAR ENDED 31 DECEER 20111 15. Fkyed a6SO1 Inv•$tm•nts Icontinuadl Prlr¢rlyl Bubsldlarfes The folltvn9 was a suW44ary Urrtoflchty. Nam Company numbÈr R•glst•r4d vfnca orppal Holdlng plÈt• dbusln•Bs dln consulldallon PGRO Res8wth Lknited 07583B22 G8t North Ro8d, Thomhawh. P¢teFboh. pe86HJ lllA Yes Th8 fiaCl re5ulL8 of the 1th51dryInr1h8 arW*re.. Narn• Enttur0 Isurplusl the year PGRO Resoarch Umiled 457,356 PagB39
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Limit8d by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Charlty Investments at falr value comprise: 2020 2019 UK common investment funds Investment in group companies 1,099,105 1,256,377 1.099.106 1,256,378 All the Charity fixed asset investments are held in the UK. 16. Debtors Graup 2020 Group 2019 Charity 2020 Charlty 2019 Due wlthin one year Trade debtors Amounts owed by group undertakings Prepayments and accrued income 271,812 216,603 395,684 267,435 111.303 423,405 267,834 154, 189 161,188 171.488 433.000 388,091 774,422 845,428 Amounts owed by group undertakings are unsecured. are interest free and repayable on demand. Charity trade debtors includes £175,410 12019 - £231.0411 in relation lo trade debtors wlh the trading subsidiary. Page 40
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 17. Credltors: Amounts falllng due wlthln one year Group 2020 Group 2019 Charlty 2020 Chaf 2019 Trade creditors Amounts owed to group undertakings Other taxation and socAal security Accruals and deferred income 34,785 46.309 33,044 9.831 95.758 152,759 100.286 79,811 156.459 97.682 117,761 f 16,681 84,904 271,055 261.752 291,392 303.455 Amounts owed to group undertakings are unsecured, are interest free and repayable on demand. Charlty trade creditors includes £179 12019 £53,977) in lSon lo trade creditors Mmth the Ir8ding subsidiary. Group 2020 Group 2019 Charlty 2020 Charify 2019 Deferred Income Deferred income at 1 January Resoltrces defeed during the year Amounts released from previous years 55,909 35.491 155,909) 82.612 55,909 (82,612) 25,852 35,491 (25,852) 28,711 25.852 (28. 711) Deforred income at 31 Decembèr 35,491 55,909 35.491 25,852 Deferred income comprises income r8laling trj 2021 associate fees Isubscriplionsl and 2021 proj8cI work. Page 41
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 18. Statement of funds Statement of funds - currÈnt year- Group Balance at I January 2020 Balance at 31 Galnsl Decernber {Losse$l 2020 Transf•rs Inlout Income Expendltur¢ Unrestrlcted funds Designated funds Flxed asset fund 394,435 177,692) 38.920 355,683 General funds General funds Trading subsidiary R8valuallon reserve 1.871.977 608.125 1736.2331 96,469 1.840,338 457.358 (320.9601 {136,396) 275,186 {157,2721 117.914 2,147.163 1.065,481 {1.057.1931 139.92n 1157.2721 1,958,252 Total Unrestricted funds 2,541,598 1,065,481 (1.134.885) {1.007) (157,2721 2,313.915 Restrl¢ted funds Restricted funds 133,894 1134.9011 1.007 Total af funds 2,541,598 1,199.375 (1.269,7861 (157.272) 2,313,915 Page 42
PROCESSORS & GROWERS RESEARCH ORGANISATION IA Company Limited by Guarante•) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 18. Statement of funds {contlnugdl Statement of fund$ - prior year- Group Balance 81 7 January 2019 Balance al 31 D8cembei 2019 Transfers in/oul Gain (Loss8sJ Income Expenditure Unrestrlcted funds Designated funds Fixed asset fund 415,764 (76,335) 55.006 394,435 General funds General funds Trading subsidiary Revaluallon reserve 1, 751,380 611.361 (575,467) 84,703 t,871.9T7 5t8.875 (371. 722) (147.153) 113,510 161.676 275,186 1.864,890 1,130,236 1947,1891 (62,450) 161,676 2. 147, 163 Total Unrestrlcted funds 2.280,654 1,130,236 {1.023.5241 (7,444) 161,676 2.541,598 Restrlcted funds Restricted funds Colin Leakey Bursary fund 242, 132 (249.576) 7,444 1.906 (1.906) 1,906 242,132 {251,4821 7,444 Total of funds 2,282,560 1,372,368 (1,275,006J 161,676 2,541.598 Page 43
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 18. Statement of funds Icontinuod) Purpose$ of Deslgnated funds Fixed assets fund - This represents the value of general funds invested in lantl and buildings and other rixed assets and is therefore not readily available for other purposes. Purposes of General funds General funds The 'free reseNes' after all other designations and restrictions. The transfer to the fixed asset fund of £38,920 represents the net of fixed asset additions and disposals in the year. Tr8ding subsidiary - Reserves in relation to the perfomiance of the trading subsidlary PGRO Research Limited. The transfer of £136,396 to the general fund fmm this fund represents the gift aid of the proffts from the trading subsidary to the Charity. R8valuation reserve - Being the difference beetsn the historic cost value and the year end fair value of listed securities investments as per Note 15. Purposes of Restrlcted funds Restricted funds Th8se rèlate Sole to grant Income and related expendllure to match grant funded projects as requSred under the t&m)s of the grant offer letters. and is therefore not readily available for oth&r purposes. Colin Le8key bursary fund - Undertaking ongoing research of Phaseolus beans. Tr8nsfers from unrestricted funds to restrict&J funds represent unrestricted funds ulilised on restricted projects oflhe Charity. Page 44
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guarant8•1 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 19. Analysis of net assets bgtween funds Analysls of net assets between funds - current period Unrestrictèd funds 2020 Total funds 2020 Tangible fixed assets Flxed asset investrnenls Current assets Creditors due within one year 355.663 355.663 1,099,105 1.099,105 1.130,202 1,130,202 (271,0551 (271,0551 Total 2,313.915 2.313,915 Analys18 of net assets between funds - prlor period Unrests7cled funds 2019 Totsl fvnds 2019 Tangible fixed assets Fixed assat investments Current assets Creditors due wlhin one year 394,435 394,435 1.256,377 1,256.377 1,152,538 1, 152,538 (261,7521 1261. 752) Totsl 2,541,598 2.541.598 Page 45
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Reconciliation of net movem¢nt in funds to net cash flow from operatlng actlvllles Group 2020 Group 2019 Net incomelexpendilure for the period las per Stslemenl of Financial Activiliesl (227,683) 259,038 Adjustments for: Depreciation charges Lossesllgains) on investments Investment income Profit on the sale of fixed assets Increase in éeblors Increase in creditors 14 77.692 157,272 {51,6371 76,335 (161,676) (58.809) (552) (35,035) 21,283 15 10 16 144.909) 9,303 17 Net cash provided byllused In) operating activit1?$ 179,9621 tOO.584 21. Analysis of cash and cash equlvalents Group 2020 Grcsup 2019 Cash in hand 697,202 764,447 Total cash and cash equivalents 697.202 764,447 Analysls of changes in net debt At1 January 2020 Cash fl¢ws At31 Decembèr 2020 Cash al bank and in hand 764,447 {67,2451 897,202 784,447 (67.2451 697,202 Page 46
PROCESSORS & GROWERS RESEARCH ORGANISATION {A Company Limited by Guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 23. Capital commitments Group 2020 Group 2019 Charty 2020 Charfty 2019 Contracted for but not provided in these financial statements Acquisition of tsngible fixed assets S,438 23,000 5,438 23.000 24. Pen$lon commltments The Group operates a defined contribution pension Scheme. The assets of the Scheme are held separately from those of the GTOUP in an independently administered fund. The pension cost charge represents contributions pay8ble by the Group to the fund and amounted to £44,38612019- £40,228). Al the year end there were no pension ¢ct"bull0nS payable12019- £NILI. 25. 0ratIng lease commltm6nts At 31 December 2020 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows= Group 2020 Group 2019 Charity 2020 Chanty 2019 Group and Charity Not later than 1 year Later than 1 year and not later than 5 years 34.417 29.295 36.127 60,628 34,417 29,295 36. 127 60.628 63.712 96, 755 63,712 96. 755 The following lease payments have been recognised as an expense in the Statement of Financial Aclivilies.. Group 2020 Group 2019 Charlty 2020 Charity 2019 Operating lease rentals 36.528 39,759 36,528 39.759 Page 47
PROCESSORS & GROWERS RESEARCH ORGANISATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 26. Related party transactlons The Group and Charity have taken advantage of the exemption contained in FRS 102 section 33 Related Paty DiscIosures and has therefore not di%closed transactions or balan5 whilh wholly owned entities which form part of its Group. Other than Key Management Personnel remuneration disclosed in Note 12 and transactions with the trading subsidiary disclosed in Notes 6. 16 and 17, there were no related paty transactions durlng 2020 or 2019. 27. Controlling party The Tntstees do not consider that there Is any slngle controlling paty. Page 48