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2022-12-31-accounts

Registered number: 00567232 Charity number: 284077

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1 - 2
Trustees' report 3 - 9
Independent auditors' report on the financial statements 10 - 13
Statement of financial activities 14
Balance sheet 15 - 16
Statement of cash flows 17
Notes to the financial statements 18 - 39

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees S W Bumstead 1
S J Francis 1
A Bury
C S Stowe, Chairman 1
T J Yewbrey
M Shuldham
J M Hopwood
D J Sedgeley
S J Portas
J R S Ward, Vice Chairman 1
Professor D L Sparkes
G J Renner
J A Maguire

1 Denotes member of the Management and Finance Committee

Company registered number 00567232 Charity registered number 284077 Registered office The Research Station Great North Road Peterborough Cambridgeshire PE8 6HJ Company secretary Mr R G Vickers Chief executive officer Mr R G Vickers

Page 1

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Independent auditors Whitings LLP Raleigh House 14C Compass Point Business Park Stocks Bridge Way St Ives Cambridgeshire PE27 5JL Bankers Lloyds Bank Plc 65 High Street Stamford Lincolnshire PE9 2AT Clydesdale Bank Plc 10 Church Street Peterborough PE8 6HJ Solicitors Greenwoods Monkstone House City Road Peterborough PE1 1JE Investment advisor M&G Securities Limited PO Box 6108 Basildon SS15 5NA Investment advisor Telford Mann Limited Oakley House Headway Business Park 3 Saxon Way West Corby NN18 9EZ

Page 2

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees, who are also directors for the purpose of company law, present their annual report together with the audited financial statements of the Charity and its subsidiary for the year ended 31 December 2022.

STRATEGIC REPORT

Background

Established in 1944, Processors and Growers Research Organisation (PGRO) conducts innovative research and provides technical services on dry harvested peas, vining (freezing) peas and peas produced for canning operations and on other legumes and selected vegetables as appropriate. With over 70 years of research experience into legumes and other selected vegetable crops the Charity’s work is recognised nationally and internationally as a source of reliable and independent technical advice.

Mission

PGRO’s mission is to:

In fulfilling its mission, PGRO works closely with organisations which are part of the production and/or usage chain including growers, plant breeders, crop protection organisations, processing companies, pulse cleaning organisations and trading specialists. These links are important since it ensures PGRO continues to effectively support UK legume production for both home and export markets.

Vision and Strategy

PGRO aims to be at the forefront of legume crop innovation and employs staff with specialist skills and knowledge to conduct field and glasshouse trials to improve legume production and evaluate variety and agrochemical quality and performance.

PGRO’s scientific activities focus on the importance of soil health, the development of higher yielding crops which are resilient to climate change and environmentally friendly pest and disease control. The benefits of new knowledge are communicated to farmers and growers and to the food industry reliant on productive agriculture.

Performance

During 2022 PGRO continued to deliver services in accordance with its research objectives and effectively delivered research projects including:

Page 3

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Charity, insofar as funds permitted conducted in-house research:

The charitable objective of education is fulfilled by co-sponsoring a rolling programme of PhDs relevant and complimentary to PGRO’s research and development strategy. During 2021 these comprised:

The Charity is also involved with Knowledge Transfer Partnership with the University of Nottingham.

PGRO continued to provide advice and information to stakeholders and undertook knowledge transfer activities. The 2022 joint PGRO/Syngenta roadshows were resumed in person and proved as popular as ever with recordings being made available online to reach a wider audience. The events enable PGRO’s experts to inform growers and advisers on developments in pulse crop markets, agronomy and research.

Other knowledge transfer activities included online grower group meetings, production of articles, publications, crop bulletins and fact sheets. During 2022 the series of master class videos were further developed to PGRO’s website giving practical advice and information, which received very positive feedback.

Experts from PGRO regularly liaise with pulse growing farmers via AHDB’s Monitor and Strategic Farms (a nationwide networks of leading farms) which brings together farmers willing to share performance and best practise information.

PGRO continued to be actively involved with the Yield Enhancement Network linking agricultural organisations and farmers with the focus on closing the gap between current and potential yields in peas and beans.

Future Plans

PGRO will continue to be principally engaged in high quality applied agricultural research. The Trustees recognise an important aspect of the Charity’s work is to contribute to the competitiveness and sustainability of UK legume crop production.

The Charity will continue to respond to appropriate grant funding calls, but the Trustees remain concerned that publicly available funding has reduced in recent years, whilst the grant application process is more competitive. The Trustees are confident the Charity will continue to identify and apply for all appropriate grants by submitting innovative ideas which emphasise the importance of efficient crop production through the most appropriate technology.

Page 4

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

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 to a wider base of skills and experience. The Charity will, insofar as funds permit, continue to expand its co-sponsorship of relevant PhDs complimentary to the Charity’s R&D strategy.

The current strategic plan remains in force until the end of 2025, but is reviewed regularly to ensure it is fit for purpose in the light of identified emerging risks to the Charity and to ensure PGRO remains a solvent and respected and vibrant organisation.

The Charity will continue to engage in knowledge transfer events and produce publications and articles relevant to the agricultural sector and wider audiences as appropriate.

Public Benefit

Globally there are concerns around climate change, population growth and food security. Innovative crop science and technology addresses these pressures by increasing productivity and improving both environmental protection and resource conservation.

PGRO’s main objective is to contribute to the advancement of the science of legume (and other crops as appropriate) by undertaking scientific research projects. Additional benefits derived from the Charity meeting its main objective include the advancement of knowledge and environmental improvement.

PGRO’s independent and applied research into legume crops translates directly into farm practise, contributing to improvements in product quality and yields and environmentally friendly practises such as seed treatment, plant populations and crop husbandry.

The Trustees are satisfied they have complied with their duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission.

FINANCIAL REVIEW

The Trustees are pleased to announce PGRO’s reserves increased by £147,043 (2021: increase £190,353).

Investment in capital equipment was undertaken as planned. The main areas were:

The Trustees are confident the direction and financial management of the charity remains robust, and continually review expenditure levels to ensure value for money is achieved.

Incoming resources for the charity for the year totalled £1.1m (2021: £1m), of which £80k related to restricted funds (2021: £0.1m).

Principal sources of income were derived from levy on legume crops traded ex-farm and research grants. The Trustees recognise the importance of diverse income streams for the financial health of the Charity and additional income came from:

All expenditure during the year was incurred in furtherance of the Charity’s objectives. There are currently no significant future factors which the Trustees consider will affect financial performance.

By considering expected future income versus future financial obligations, the Trustees have a reasonable expectation that PGRO has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual reports and accounts.

Page 5

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Reserves Policy

The reserves policy considers:

The Trustees regularly consider the risk to the Charity of any significant loss of income and also the risk of any unforeseen expenditure, thereby acknowledging the relationship between the risk management and reserves policies. The full effect of the UK exit from the European Union on UK agriculture and related research is as yet unknown. Therefore, the Trustees deem it prudent to hold sufficient reserves to mitigate any potential negative impact on future income in order for the Charity to be able to achieve its objectives.

At 31st December 2022, unrestricted funds were £2.7m. The Trustees aim to maintain free reserves in unrestricted funds at a level equating to 35 months of unrestricted charitable expenditure in so far as these funds are not committed to or invested in tangible fixed assets. The Trustees consider this level will provide sufficient funds to:

At 31st December 2022 the Group had total reserves of £2.7m (£0.4m in tangible fixed assets and £2.3m in investments and net working capital).

Investment Policy

The investment policy considers:

The Charity currently holds several long-term investments, the income from which directly contributes to the Charity’s objectives. The Charity only invests in medium-risk products with due regard to social, environmental and ethical issues. The Trustees meet at least annually with representatives of the Fund Managers to review investment risk, income generation and capital growth.

Related Parties

The Charity has a wholly owned subsidiary, PGRO Research Limited, which donates its profits to PGRO (Charity) via gift aid in perpetuity.

Page 6

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

RISK ASSESSMENT AND MANAGEMENT

The Board of Trustees is responsible for ensuring there are effective and adequate risk management and internal controls systems in place to manage the major risks to which the Charity is exposed. The Risk Register (focusing on the key risk areas of governance, operational, financial, environmental and external/regulatory), identifies the risks PGRO faces, prioritises them in terms of likelihood of occurrence, their potential impact and how they can be mitigated.

The Board recognises the Risk Register is a live document and regularly review: • The key risks the Charity may face, likelihood of materialisation, likely impact and the procedures required to minimise impact should they materialise

• Internal controls and procedures and their effectiveness to ensure the needs of the Charity are met and compliance with externally issued guidelines and statements of best practice.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisation

Processors and Growers Research Organisation was incorporated in England and Wales on 7th June 1956, and is a company limited by guarantee (registered number 00567232) and a registered charity (number 00284077). It is governed by its Memorandum and Articles of Association which were last amended 7th December 2017.

Members and Board of Trustees

The Board of Trustees comprises the Chair and up to fourteen additional trustee directors. The Trustees are also the members of the organisation. The Management and Finance Committee is an established sub-committee The following Trustees have served during the period:

S W Bumstead $ S J Francis $ A Bury C S Stowe $ (Chairman) G J Renner D J Sedgeley S J Portas J R S Ward $ (Vice Chairman) Professor D L Sparkes T J Yewbrey J M Hopwood J A Maguire M Shuldham

$ Denotes member of the Management and Finance Committee as at 31st December 2022.

Trustee Remuneration

No remuneration or benefit was paid or granted to any Trustee.

Recruitment, Induction and Training of Trustees

PGRO recruits Trustees with the relevant skillset to support the Charity’s activities. A regularly reviewed induction programme is in place for newly appointed Trustees. All Trustees are encouraged to be familiar with the practical work of the Charity and maintain an understanding of its activities by attending the Charity’s premises, events and meetings and engaging with staff.

Page 7

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Liability Insurance

The Charity holds Directors and Officers Insurance which will indemnify the Directors against claims from third parties. It does not provide cover in the event a Trustee is proven to have acted either fraudulently or dishonestly.

Governance

The Board of Trustees is responsible for the management of PGRO’s affairs in accordance with its Memorandum and Articles of Association and meets regularly throughout the year to oversee the

Charity’s strategic direction and financial probity.

The Trustees have used the UK Charity Governance Code to measure the performance of the Board and its structure. The Code considers a maximum of twelve trustees to be good practice, and whilst PGRO currently has thirteen board members (the Memorandum and Articles of Association allow a maximum of fifteen), the Trustees consider a greater number allows for representation from all the 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. Their reappointment is approved providing they are still professionally active, have indicated their willingness to continue and any negative affect the loss of industry experience would have on the Board if a suitable replacement could not be sourced.

Additionally, the Management and Finance sub-committee (comprising the Chair, Vice-Chair, Chief Executive, Finance Manager and at least two other Board members) meets to:

The Chief Executive (appointed by the Trustees) manages the day-to- day operation of the charitable company. To ensure effective operations the Chief Executive and Senior Management Team have delegated authority for all operational matters.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS

The Trustees (who are also directors of Processors & Growers Research Organisation for the purposes of company law) are responsible for preparing the Trustees’ Report incorporating the

Strategic Report and the financial statements in accordance with applicable company law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom General Accepted Accounting Practise (United Kingdom accounting standards and applicable law), including FRS102, the financial reporting standard applicable in the UK and Republic of Ireland.

Page 8

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

presume that the charitable group will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that:

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

INDEPENDENT AUDITORS

Whitings LLP has indicated its willingness to continue in office, and as such is deemed to be re-appointed under section 487 (2) of Companies Act 2006.

The Trustees approve the Trustees’ Report, incorporating the Strategic Report and financial statements which are signed on behalf of the Board of trustees of Processors and Growers Research Organisation

Approved by order of the members of the board of Trustees on 7 August 2023 and signed on their behalf by:

C S Stowe Chairman

Page 9

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROCESSORS AND GROWERS RESEARCH ORGANISATION

Opinion

We have audited the financial statements of Processors and Growers Research Organisation (the 'charitable company') for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the 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:

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 10

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROCESSORS AND GROWERS RESEARCH ORGANISATION (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:

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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 11

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROCESSORS AND GROWERS RESEARCH ORGANISATION (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 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:

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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Page 12

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROCESSORS AND GROWERS RESEARCH ORGANISATION (CONTINUED)

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.

Whitings LLP

Raleigh House 14C Compass Point Business Park

Stocks Bridge Way

St Ives

Cambridgeshire PE27 5JL

7 August 2023

Whitings LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 13

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Income from:
Charitable activities
4
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net income/(expenditure) before net
(losses)/gains on investments
Net (losses)/gains on investments
Net income/(expenditure)
Transfers between funds
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
887,326
200,357
-
1,087,683
563,128
180,106
743,234
344,449
(87,724)
256,725
(109,682)
147,043
2,589,169
147,043
2,736,212		 Restricted
funds
2022
£
79,046
-
-
79,046
188,728
-
188,728
(109,682)
-
(109,682)
109,682
-
-
-
-		 Total
funds
2022
£
966,372
200,357
-
1,166,729
751,856
180,106
931,962
234,767
(87,724)
147,043
-
147,043
2,589,169
147,043
2,736,212		 Total
funds
2021
£
826,248
130,379
1,094
957,721
(5,815)
823,093
817,278
140,443
134,814
275,257
-
275,257
2,313,912
275,257
2,589,169

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 18 to 39 form part of these financial statements.

Page 14

PROCESSORS AND GROWERS RESEARCH ORGANISATION (A company limited by guarantee) REGISTERED NUMBER: 00567232

BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Net assets excluding pension asset
Total net assets		 875,917
351,645
1,227,562
(354,613)		 2022
£
375,094
1,495,416
1,870,510
872,949
2,743,459
(7,248)
2,736,211
2,736,211		 708,788
488,649
1,197,437
(335,086)		 2021
£
346,251
1,380,567
1,726,818
862,351
2,589,169
-
2,589,169
2,589,169

Page 15

PROCESSORS AND GROWERS RESEARCH ORGANISATION (A company limited by guarantee) REGISTERED NUMBER: 00567232

BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2022

Note
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 2022
£
-
2,736,211
2,736,211		 2021
£
-
2,589,169
2,589,169

The entity 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 144 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.

The financial statements were approved and authorised for issue by the Trustees on 07 August 2023 and signed on their behalf by:

C S Stowe

Chairman

The notes on pages 18 to 39 form part of these financial statements.

Page 16

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Investment managers fees settled
Purchase of investments
Gift aid donation from subsidiary
Proceeds from the sale of investments
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 18 to 39 form part of these financial statements		 2022
£
(19,108)
58,873
(87,801)
-
(402,572)
147,745
200,000
(83,755)
-
(102,863)
500,240
397,377		 2021
£
191,003
45,475
(50,610)
3,353
(150,000)
84,904
-
(66,878)
-
124,125
376,115
500,240

Page 17

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. General information

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 registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charity's operations and principal activity is the provision of scientific research in relation to legume crops.

In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £2 per Member of the Charity.

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.

Processors and Growers Research Organisation 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.

2.2 Going concern

The financial statements have been prepared on a going concern basis. The Trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. In response to the COVID-19 pandemic, the Trustees have performed a robust analysis of forecast future cash flows taking 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 to assist in mitigating the impact.

Based on these assessments and having regard to the resources available to the entity, the Trustees have concluded that there is no material uncertainty and that they can continue to adopt the going concen basis in preparing the Trustees Report and accounts.

Page 18

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income is recognised exclusive of Value Added Tax and trade discounts.

Membership fees are recognised when the Charity has entitlement to the income.

Rent and meeting income is recognised when receivable.

Levy income is recognised when receivable, with the level of charges reviewed annually by reference to work done.

Research and technical income, technical services and publications income is recognised by reference to work done.

Revenue grants are credited as income when they are receivable provided conditions for receipt have been complied with, unless they relate to a specified future period, in which case they are deferred.

With regard to EU True Project and EU Leg Value grant income, such income is recognised in line with related expenditure as per the terms of the grants.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of donation.

Investment income is recognised when received and comprises interest on fixed interest securities and bank deposits and dividend income receivable.

Other income is recognised in the period in which it is receivable and to the extent that the goods or services have been provided.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

The subsidiary trading company PGRO Research Ltd has agreed in advance by way of its constitution to mandate annually all profits made up to its parent Charity PGRO by way of charity gift aid donation. Such donation must be made within 9 months of the Balance Sheet date. Due to the commitment plus custom & practice established in this arrangement, the annual profit for the accounting period of the subsidiary is also included as gift aided income in the parent charity accounts in the same year that it arises in the subsidiary.

Page 19

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

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.

Support costs are those costs incurred directly in support of expenditure on the objectives of the Charity. Support costs have been allocated to each activity on the following basis, based on an estimate of staff time spent on each activity:

Research and development 72.57% (2021: 72.06%) Knowledge transfer 27.43% (2021: 27.943%)

Governance costs are costs incurred in connection with the administration of the Charity and compliance with constitutional and statutory requirements.

Research and development expenditure is recognised as an expense in the period in which it is incurred.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Taxation

The Charity 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 Charity 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 20

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 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.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

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 basis:

Long-term leasehold property - Over the life of the lease
Plant and machinery - 15% on cost
Motor vehicles - 20% on cost
Office equipment - 15% on cost
Computer equipment - 30% on cost
Site development - 10% on cost

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment.

Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 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.

2.10 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.

Page 21

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.

2.12 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.13 Finance leases and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.14 Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

2.15 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

Page 22

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.16 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 Company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

The Trustees consider that the expected useful lives of tangible fixed assets and support cost allocations are appropriate.

Page 23

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4. Analysis of income from charitable activities - by type

Membership & levy fees
Grants receivable
Technical services & publications
Research & technical income
Total 2022
Total 2021		 Unrestricted
funds
2022
£
856,642
-
10,805
19,879
887,326
715,297		 Restricted
funds
2022
£
-
79,046
-
-
79,046
110,951		 Total
funds
2022
£
856,642
79,046
10,805
19,879
966,372
826,248		 Total
funds
2021
£
700,102
110,951
14,485
710
826,248

5. Analysis of income from charitable activities - by fund

Research and development
Knowledge transfer
Total 2022
Total 2021		 Unrestricted
funds
2022
£
643,933
243,394
887,327
715,297		 Restricted
funds
2022
£
57,363
21,682
79,045
110,951		 Total
funds
2022
£
701,296
265,076
966,372
826,248		 Total
funds
2021
£
595,359
230,889
826,248

Page 24

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

6. Investment income

Income from local listed investments
Gift aid donation from subsidiary
Investment income - local cash
Total 2022
Total 2021		 Unrestricted
funds
2022
£
52,455
147,745
157
200,357
130,379		 Total
funds
2022
£
52,455
147,745
157
200,357
130,379		 Total
funds
2021
£
45,439
84,904
36
130,379

7. Other incoming resources

Other income
Total 2021		 Unrestricted
funds
2022
£
-
1,094		 Total
funds
2022
£
-
1,094		 Total
funds
2021
£
1,094

8. Analysis of expenditure on charitable activities Summary by fund type

Research and development
Knowledge transfer
Total 2021		 Unrestricted
funds
2022
£
143,535
36,571
180,106
712,032		 Restricted
funds
2022
£
-
-
-
111,061		 Total
2022
£
143,535
36,571
180,106
823,093		 Total
2021
£
554,356
268,737
823,093

Page 25

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Analysis of expenditure by activities

Research and development
Knowledge transfer
Total 2022
Total 2021		 Activities
undertaken
directly
2022
£
-
-
-
589,203		 Support
costs
2022
£
143,535
36,571
180,106
233,891		 Total
funds
2022
£
143,535
36,571
180,106
823,094		 Total
funds
2021
£
554,356
268,738
823,093

Analysis of support costs

Staff costs
Depreciation
Travel & subsistence costs
Other staff costs
Repairs & maintenance
Stationery, advertising, postage & equipment
hire
Office running costs
Professional fees
Governance costs
Total 2021		 Research
and
development
2022
£
75,671
1,614
327
488
3,393
9,334
41,057
1,659
9,992
143,535
165,966		 Knowledge
transfer
2022
£
10,919
610
124
185
1,283
3,528
15,517
627
3,778
36,571
67,924		 Total
funds
2022
£
86,590
2,224
451
673
4,676
12,862
56,574
2,286
13,770
180,106
233,891		 Total
funds
2021
£
143,922
3,999
598
1,486
3,970
14,591
51,085
5,815
8,425
233,891

Page 26

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

. Analysis of direct costs

Staff costs
Depreciation
Project costs
Other staff costs
Office running costs
Stationery, advertising, postage & equipment
hire
Travel & subsistence
Total 2021		 Research
and
development
2022
£
362,110
41,172
134,491
7,860
1,393
1,817
23,282
572,125
384,185		 Knowledge
transfer
2022
£
59,532
15,562
37,479
2,298
1,393
10,192
40,790
167,246
199,185		 Total
funds
2022
£
421,642
56,734
171,970
10,158
2,786
12,009
64,072
739,371
583,370		 Total
funds
2021
£
341,377
56,021
111,061
9,982
1,872
15,188
47,884
583,385

10. Auditors' remuneration

2022 2021
£ £
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 7,955 6,975

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
431,168
47,912
29,153
508,233		 2021
£
391,891
55,973
37,435
485,299

Page 27

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11. Staff costs (continued)

The average number of persons employed by the Company during the year was as follows:

Management and administration
Direct charitable		 2022
No.
3
14
17		 2021
No.
3
13
16

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £80,001 - £90,000 1 1

The Key Management Personnel of the Group are the Trustees and the Senior Managers, being the CEO, the Finance Manager and the Principal Technical Officers. The Trustees are not remunerated.

The total of employer benefits, excluding employers social security contributions, received by Key Management Personnel of the Group was £217,174 (2021: £246,657).

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 28

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. Tangible fixed assets

Cost or valuation
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022		 Long-term
leasehold
property
£
284,472
-
284,472
118,420
2,765
121,185
163,287		 Plant and
machinery
£
409,265
67,552
476,817
328,698
35,756
364,454
112,363		 Motor
vehicles
£
32,490
-
32,490
32,490
-
32,490
-		 Office and
computer
equipment
£
133,343
-
133,343
131,735
841
132,576
767		 Site
development
£
302,354
20,250
322,604
204,330
19,596
223,926
98,678		 Total
£
1,161,924
87,802
1,249,726
815,673
58,958
874,631
375,095

The tangible fixed assets are held for the direct furtherance of the Charity's objectives.

Page 29

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14. Fixed asset investments

Cost or valuation
At 1 January 2022
Additions
Disposals
Revaluations
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Investments
in subsidiary
companies &
mutual
organisations
£
1
1
-
-
2
2
1		 Listed
investments
£
1,380,566
402,572
(200,000)
(87,724)
1,495,414
1,495,414
1,380,566		 Total
£
1,380,567
402,573
(200,000)
(87,724)
1,495,416
1,495,416
1,380,567

Listed investments held at fair value comprise funds indirectly held by fund managers M&G Investments and Telford Mann Investments. All investments in listed securities are held in UK common investment funds and are included within unrestricted funds. Investments are revalued to recognise their fair value at each balance sheet date.

Page 30

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the Company:

Name Company Registered office or principal Principal activity number place of business PGRO Research Limited 07583822 Great North Road, Thornhaugh, Trading activities on Peterborough, Cambridgeshire, behalf of the PE8 6HJ charitable parent company

Class of Holding Included in shares consolidation Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name
PGRO Research Limited
15.
Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors		 2022
£
393,729
375,097
107,091
875,917		 Net assets
£
1
2021
£
292,600
276,359
139,829
708,788

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Page 31

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Obligations under finance lease and hire purchase contracts
Accruals and deferred income		 2022
£
171,471
22,570
88,005
3,619
68,948
354,613		 2021
£
45,995
64,306
102,939
-
121,846
335,086

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

Deferred income at 1 January 2022
Resources deferred during the year
Amounts released from previous periods		 2022
£
(16,754)
-
16,754
-		 2021
£
-
18,737
(35,491)
(16,754)

Deferred income comprises income in relation to future period associate fees (subscriptions) and project work.

17. Creditors: Amounts falling due after more than one year

Net obligations under finance lease and hire purchase contracts
18.
Financial instruments
Financial assets
Financial assets measured at fair value through income and expenditure		 2022
£
7,248
2022
£
351,644		 2021
£
-
2021
£
488,649

Financial assets measured at fair value through income and expenditure comprise cash held at bank and in hand.

Page 32

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Designated
Funds - all funds
Fixed asset fund
General funds
General Funds -
all funds
Trading
subsidiary
Revaluation
reserve
Total
Unrestricted
funds
Restricted
funds
Restricted Funds
- all funds
Restricted Funds
Total of funds		 Balance at 1
January 2022
£
-
397,349
397,349
1,939,092
-
252,728
2,191,820
2,589,169
-
-
-
2,589,169		 Income
£
-
-
-
939,938
147,745
-
1,087,683
1,087,683
79,046
-
79,046
1,166,729		 Expenditure
£
-
-
-
(743,235)
-
-
(743,235)
(743,235)
(188,728)
-
(188,728)
(931,963)		 Transfers
in/out
£
-
20,250
20,250
(129,932)
-
-
(129,932)
(109,682)
109,682
-
109,682
-		 Gains/
(Losses)
£
-
-
-
-
-
(87,724)
(87,724)
(87,724)
-
-
-
(87,724)		 Balance at 31
December
2022
£
-
417,599
417,599
2,005,863
147,745
165,004
2,318,612
2,736,211
-
-
-
2,736,211

Page 33

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Designated
Funds - all funds
Fixed asset fund
General funds
General Funds -
all funds
Trading
subsidiary
Revaluation
reserve
Total
Unrestricted
funds
Restricted
funds
Restricted Funds
- all funds
Restricted Funds
Total of funds		 Balance at
1 January
2021
£
355,663
-
355,663
1,958,249
-
-
1,958,249
2,313,912
-
-
-
2,313,912		 Income
£
-
-
-
761,866
-
-
761,866
761,866
-
110,951
110,951
872,817		 Expenditure
£
-
-
-
(706,217)
-
-
(706,217)
(706,217)
-
(111,061)
(111,061)
(817,278)		 Transfers
in/out
£
-
-
-
(110)
-
-
(110)
(110)
-
110
110
-		 Gains/
(Losses)
£
-
-
-
219,718
-
-
219,718
219,718
-
-
-
219,718		 Balance at
31
December
2021
£
355,663
-
355,663
2,233,506
-
-
2,233,506
2,589,169
-
-
-
2,589,169

Page 34

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19. Statement of funds (continued)

Purposes of designated funds

Fixed assets fund - This represents the value of general funds invested in land and buildings and other similar fixed assets and is therefore not readily available for other purposes.

Purposes of general funds

General funds - The 'free reserves' after all other designations and restrictions. The transfer to the fixed asset fund of £20,250 (2021: £41,686) represents the net of fixed asset additions and disposals in the year.

Trading subsidiary - Reserves in relation to the performance of the trading subsidiary PGRO Research Limited. The transfer of £147,745 (2021: £84,904) to the general fund from this fund represents the gift aid of the profits from the trading subsidiary to the Charity.

Revaluation reserve - Being the difference between the historic cost value and the year end fair value of listed securities investments are per note 14.

Purposes of restricted funds

Restricted funds - These relate solely to grant income and related expenditure to match grant funded projects as required under the terms of the grant offer letters, and is therefore not readily available for other purposes.

Colin Leakey bursary fund - Undertaking ongoing research of Phaseolus beans.

Transfers from unrestricted funds to restricted funds represent unrestricted funds utilised on restricted projects of the Charity.

20. Summary of funds

Summary of funds - current year

Designated
funds
General funds
Restricted funds		 Balance at 1
January 2022
£
397,349
2,191,820
-
2,589,169		 Income
£
-
1,087,683
79,046
1,166,729		 Expenditure
£
-
(743,235)
(188,728)
(931,963)		 Transfers
in/out
£
20,250
(129,932)
109,682
-		 Gains/
(Losses)
£
-
(87,724)
-
(87,724)		 Balance at 31
December
2022
£
417,599
2,318,612
-
2,736,211

Page 35

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. Summary of funds (continued)

Summary of funds - prior year

Designated
funds
General funds
Restricted funds		 Balance at
1 January
2021
£
355,663
1,958,249
-
2,313,912		 Income
£
-
761,866
110,951
872,817		 Expenditure
£
-
(706,217)
(111,061)
(817,278)		 Transfers
in/out
£
-
(110)
110
-		 Gains/
(Losses)
£
-
219,718
-
219,718		 Balance at
31
December
2021
£
355,663
2,233,506
-
2,589,169

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2022
£
375,094
1,495,416
1,227,561
(354,614)
(7,248)
2,736,209		 Restricted
funds
2022
£
-
-
-
-
-
-		 Total
funds
2022
£
375,094
1,495,416
1,227,561
(354,614)
(7,248)
2,736,209

Page 36

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Gift aid donation from subsidiary
Decrease/(increase) in debtors
Increase in creditors
Movement of cash held in investment wrapper
Net cash provided by/(used in) operating activities
23.
Analysis of cash and cash equivalents
Cash in hand
Cash held in investment wrapper
Total cash and cash equivalents
24.
Analysis of changes in net debt
At 1 January
2022
Cash flows
£
£
Cash at bank and in hand
488,649
(137,005)
Hire purchase
-
-
488,649
(137,005)		 2022
£
147,043
58,958
87,724
(58,872)
(147,745)
(167,133)
26,776
34,141
(19,108)
2022
£
351,644
45,733
397,377
Acquisition
and disposal
of
subsidiaries
£
-
(10,867)
(10,867)		 2021
£
275,257
60,020
(134,814)
(45,475)
(84,904)
65,632
43,695
11,592
191,003
2021
£
488,648
11,592
500,240
At 31
December
2022
£
351,644
(10,867)
340,777

Page 37

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

25. Capital commitments

2022 2021
£ £
Contracted for but not provided in these financial statements
Acquisition of tangible fixed assets - 22,000

26. Pension commitments

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

The pension cost charge represents contributions payable by the Charity to the fund and amounted to £38,918 (2021: £40,695).

At the year end, pension contributions payable of £Nil were included within taxation & social security (2021: £6,301).

27. Operating lease commitments

At 31 December 2022 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		 2022
£
16,372
2,705
19,077		 2021
£
26,731
14,040
40,771

Page 38

PROCESSORS AND GROWERS RESEARCH ORGANISATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

28. Related party transactions

The Charity has taken advantage of the exemption contained in FGRS 102 section 33.1 Related Party Disclosures and has therefore not disclosed transactions or balances with wholly owned entities which form part of the group.

Fen Peas Limited - a company under common control of Stephen Francis During the year, PGRO invoiced Fen Peas Limited £8,573 (2021: £10,385). The amount outstanding from Fen Peas Limited at the balance sheet date was £Nil (2021: £Nil).

British Growers Association - an organisation under common control of John Ward During the year, British Growers Association invoiced PGRO £6,735 (2021: £Nil). The amount outstanding to British Growers Association at the balance sheet date was £8,082 (2021: £Nil). British Growers Association also offer the opportunity for their customers to become members and as a result, PGRO acquired a £1 share on 1st November 2022. The cost of this acquisition is presented within fixed asset investments.

Key Management Personnel remuneration has been disclosed in note 11 and Trustees remuneration & expenses have been disclosed in note 12.

29. Controlling party

The Trustees do not consider that there is any single controlling party.

Page 39