2020-12-31-accounts

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The Chelsea Physic Garden Company (a company limited by guarantee)

Consolidated Report and Financial Statements

Year Ended 31 December 2020

Company Number 01690871 Charity Number 286513

The Chelsea Physic Garden Company

(a company limited by guarantee)

Report and financial statements for the year ended 31 December 2020

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020

The trustees, who are also directors for the purpose of company law present their report together with the audited financial statements for the year ended 31 December 2020 which are also prepared to meet the requirements for a director’s report and accounts for Companies Act purposes.

Status and Constitution

Charity Name: The Chelsea Physic Garden Company Charity registration number: 286513 Company registration number: 01690871 Registered office and 66 Royal Hospital Road operational address: London SW3 4HS

The charity is constituted as a company limited by guarantee. The charity is governed by its Articles of Association dated 17 May 2019.

The company was incorporated to act as a Trustee of the charity known as The Chelsea Physic Garden (Charity registration number 286513) and to advance public education and in particular to promote the study of botany and related sciences.

The Chelsea Physic Garden is currently dormant and is consolidated within the accounts of The Chelsea Physic Garden Company.

Directors and members of the Board

The directors and members of the Board (who also act as trustees for the charitable activities of The Chelsea Physic Garden Company) who served during the year and subsequently were:

Mrs Cathy Arnold Mr Colin Chisholm Mr Paul Martin Gray Mrs Sukie Hemming Dr Helen Charman Ms Anna Jobson Mr Tony Kirkham Mrs Patricia Lankester Lady Arabella Lennox-Boyd Mr Michael McGonigle Mr Quoc-Nghi Nguyen Mr Michael Prideaux Mrs Sarah Speller Mrs Susan Medway

(Hon. Treasurer, Finance & Operations Committee) (Finance & Operations Committee)

(appointed 4 February 2021)

(Chair of Advisory Committee) (Resigned 31 December 2020)

(Finance & Operations Committee)

(Chairman of the Board, Finance & Operations Committee) (Finance & Operations Committee) (Company Secretary)

Senior Management Team

Director Development Director Commercial Director

Deputy Director (Visitor Experience) Head of Finance Head of Plant Collections Head of Learning & Public Engagement Executive Assistant Project Manager

Mrs Susan Medway Mrs Joanna Wells Mrs Wendy Bowen Mr Tom Gilliford (from April 2020) Ms Frances Sampayo Mr Paul Ryan Ms Nell Jones Ms Katy Parry Ms Gill Mathias Mrs Sue Saville

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Professional advisors

Bank:	National Westminster Bank plc
	183b Kings Road
	Chelsea
	London
	SW3 5EB
Solicitors:	Farrer & Co
	66 Lincolns' Inn Fields
	London
	WC2A 3LH
	Wilsons LLP
	Alexander House
	St Johns Street
	Salisbury
	SP1 2SB
Auditor:	BDO LLP
	2 City Place
	Beehive Ring Road
	Gatwick
	West Sussex
	RH6 0PA
Fund Managers:	Sarasin & Partners LLP
	Juxon House
	100 St Paul’s Churchyard
	London
	EC4M 8BU
Registered and principal office:	66 Royal Hospital Road
	London
	SW3 4HS

Organisation and Structure

Appointments to the Board are for an initial period of three years after which directors can seek re-election, serving two additional terms each of three years. These provisions also apply to appointments to the Board of CPG Enterprises Limited, the Advisory Committee and other board committees. There is provision to extend the appointment of a director for a limited period where the experience or organisational knowledge of that director supports an important or timely activity.

Mrs Patricia Lankester retired at the end of 2020 following a one year extension to her appointment as a director of the company in order to continue to contribute to the development of the learning strategy and activity programme associated with the Glasshouse capital project.

The directors determine the overall strategy and policies of the company. The delivery of the Garden's strategic plans, fundraising and external professional relations together with day to day management are delegated to the Director, Mrs Susan Medway, who is also appointed as Company Secretary. The Director takes a lead on major project activity as the most senior executive of the company. She is supported by a small team of senior managers and staff.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Organisation and Structure (continued)

The principal departments and senior roles are:

The Deputy Director (Visitor Experience) is responsible for the welcome provided to visitors and for management of the buildings and their services. Through the Learning and public programme team they have oversight of learning activity and the public programme. The Deputy Director deputise for the Director in their absence.

The Commercial Director is responsible for all commercial activity including retail, venue hire and commercial partnerships, they also manage the relationship with the catering partner. They are responsible for the Friends’ scheme; through their team they undertake all PR, marketing and communications including digital.

The Development Director is responsible for supporting senior fundraising volunteers as well as direct fundraising for both specific capital projects and also to support the charity’s education and learning programmes. Notable is the project to restore the Garden’s glasshouses which has been supported by a development grant from the National Lottery Heritage Fund and for which a capital appeal is underway.

The Head of Finance is responsible for all finance activities for the company and the wholly owned trading subsidiary CPG Enterprises Limited.

The Head of Plant Collections is responsible for the horticultural management of the garden and its plant collections together with the herbarium and seed bank. They ensure delivery of the horticultural training programmes.

The Project Manager leads on coordinating the project Board, the project team, the capital design team and supporting colleagues to achieve progress on all capital and programme activities required for the Glasshouse project and plans towards the Gardens building refurbishment programme as part of its 350th anniversary celebrations in 2023.

The Executive Assistant supports the Board, its sub-committees and senior staff. They take minutes for all meetings including all the Board, their sub-committees as well as the Project Board and project meetings.

Related parties and co-operation with other organisations

None of the directors receive remuneration or other benefits from their work with the charity. Any connection between a director or senior manager of the charity with another organisation, another charity or an individual that the charity may come into contact with in the course of pursuing its objectives must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party.

The charity’s wholly owned subsidiary, CPG Enterprises Limited, was established on 20 December 1995 (company number 3140004). It is responsible for overseeing commercial activities, retail, catering, venue hire and any licensing for commercial purposes of the charity’s trademark. CPG Enterprises Limited has a licence from the charity to occupy the shop premises and gift aids its profits to the charity (see note 13b to the financial statements). The catering operation is contracted out with an agreed percentage of net turnover paid to CPG Enterprises Limited. The vast majority of venue hire bookings are fulfilled outside of the visitor opening periods.

The charity has working relationships and maintains networks with a number of organisations at a local, national and international level. As a small independent charity these are important to raise and maintain its profile, to promote its diverse work and to share information and best practice.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Related parties and co-operation with other organisations (continued)

The charity maintains membership of the Botanic Gardens Education Network, Botanic Gardens Conservation International, the Association of Independent Museums, the National Council for the Conservation of Plants and Gardens, the Chartered Institute of Personnel & Development and The Heritage Alliance.

Close networks exist between a large number of international botanic gardens notably through the Index Seminum, the international seed exchange programme. The Garden also maintains good working relationships with staff at the Royal Botanic Gardens, Kew; Cambridge and Oxford Botanic Gardens; Edinburgh and Bristol Botanic Gardens. The Royal Horticultural Society and Kew support the Garden with technical advice, expertise and plant material. The Garden has reciprocated with similar exchanges of expertise and also hosted visits from horticultural trainees from many of these Gardens. There is a developing network through the charity’s outreach programme including the small community garden in North Kensington and with organisations such as St Mungo’s and The Passage.

At a local level the charity engages with what is going on within the borough of Kensington and Chelsea, and particularly within the environs of Chelsea and Kings Road. The Garden pays attention to activities relating to tourism, education and community initiatives that it can support and promote either actively or passively. Representatives from the charity attend meetings and networking events of the Kings Road Business Forum and The Chelsea Society and they work with the Royal Hospital, Chelsea and the National Army Museum. The Director sits on the Committee of London Gardens Network, whose aim is to support and develop the skills and opportunities for professional gardeners. She is a Trustee of The London Gardens Society, a charity whose purpose is to stimulate pride in London especially by cultivating flowers and home gardens. She is a Liveryman of the Worshipful Company of Gardeners.

All intra-group transactions have taken place in the normal course of business. There are no other related party transactions requiring disclosure.

Aims and Objectives

Purpose and principal activities

The charitable purpose and objectives of the charity are to demonstrate the medicinal, economic, cultural and environmental importance of plants to the survival and well-being of humankind.

Chelsea Physic Garden carries out this charitable purpose for the public benefit by:

providing programmes of educational activities, publications and events;
maintaining documented plant collections in labelled and interpreted displays in an historic botanic garden;
demonstrating the development of the science and practice of horticulture, botany and related disciplines through the historical role of the garden; and
promoting the importance of the conservation of plants and the natural environment.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Ensuring our work delivers our aims for the public benefit

The aims and activities of the company as a charity are reviewed each year. Public engagement and the conservation and care of Chelsea Physic Garden’s collections are at the core of the charity's activities. The annual review looks at what has been achieved and the outcome and impact of that work in the previous 12 months against the key performance indicators monitored throughout the year. The principal performance indicators relate to:

overall number of visitors to the Garden and admissions income;
total number of School Learners;
total number of Learners on Outreach visits and Community Engagement participants;
number of participants on Public programmes and Family activity days;
the number of Friends of the Garden;
retail revenue;
venue hire revenue;
website and social media activity; and
fundraising activity to support operating and capital projects.

Public benefit statement

The charity Trustees consider that they have complied with their duty in section 17 of the Charities Act 2011 to have due regard to Public Benefit guidance published by the Charity Commission and that the benefits that the charity provides are not unreasonably restricted.

The directors ensure the charity delivers public benefit by:
admitting the public to the Garden on payment of a modest admission charge;
maintaining a Friends scheme;
providing a range of learning and public programmes on and off-site;
site and collections interpretation;
publications and digital resources; and
providing guided tours, visitor services and on-line access.

Our activities

We aim to demonstrate horticultural and botanical excellence in the presentation of the Garden, whilst interpreting it in an interesting and accessible manner. Work continues to maintain interest in the horticultural displays and whilst the layout of the Garden remains largely unchanged, seasonal planting and interpretation is introduced in order to interpret the collections and extend the season. Maintenance and redecoration work continues, ensuring that we maintain standards of presentation pending major refurbishment.

Notwithstanding the impact of the COVID-19 global pandemic the impact of which is detailed later in this report, in normal times, the Garden is open to visitors 11 months of the year, six days a week; it maintains longer opening hours (11am- 6pm) between April and October and has evening openings on Tuesdays and Wednesdays in July and August staying open until 10pm. Saturdays are exclusively reserved for private hire.

Because of the effect of the COVID-19 pandemic, repeated restrictions on travel, a period of forced closure in 2020 the Garden welcomed 35,583 visitors, a decrease of 50% on 2019. The number of Friends at 31 December was 5,975, a decrease of 8.25% on 2019.

Income from commercial lettings should form a significant part of the charity's income. Information relating to private hire and to the Garden's programme of events and activities is posted on the website and is promoted via the monthly e-newsletter, and of this activity has been substantially affected by and curtailed by the restrictions in place throughout the year. Very little venue hire has been possible and any has been very small scale, the public programme has been delivered digitally.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Our activities (continued)

The collaboration with Beefeater Gin through the London Garden Gin product and their charitable donation to the Garden continued in 2020. An agreement has been reached with Octopus Publishing for the production of a Garden Herbal and an initial charitable donation has been made by them.

The City Bridge Trust and the Band Trust have continued their support of the outreach programme which enabled this to continue. The Garden was able to welcome 722 learners to the Garden and a further 439 took part in some form of activity off-site either within their own space or at the community Garden. We are clear that this substantial decrease in physical engagement with learners was a consequence of education institutions having to adapt repeated closures and to restrictions on travel. We have used the funding to develop and launch various digital resources. In the year we had 2,346 digital downloads of our learning resources and 814 participants on our digital public programme. The committed funding has been in place to the end of 2020 and efforts are underway to secure new funding to continue the programmes.

Funding from private individuals and charitable trusts, including the continued generous support from the Eranda Rothschild Foundation, has ensured that the Garden continues to be able to offer a one year horticultural training programme specifically tailored to improving the skills of successful candidates in working in an historic botanical garden open to the public. In 2020 we were able to only secure funding for one trainee. The intern programme has been able to continue, with a student able to take up a placement during the summer undertaking periods of study.

Future vision

Progress on achieving the overall objective to update the Gardens horticultural and learning facilities and infrastructure; to improve and enhance the overall accessibility and experience for visitors, as part of its 350 anniversary celebrations in 2023 continue.

The first phase of this is restoration and reinterpretation of the Garden’s Victorian Glasshouses. The National Lottery Heritage Fund (NLHF) approved a first round grant of £172,500 in December 2019 and work has been undertaken to prepare a detailed plan to fully repair the Glasshouses to better care for the plant collections, to improve the interpretation unlocking stories that help visitors understand the value of plants in their lives, together with important conservation and biodiversity and environmental issues.

Fundraising has been successfully undertaken to fully support the project including a delivery grant award from the NLHF.

COVID-19

In line with Government guidance, the charity closed the Garden to all but essential workers on 22 March 2020 in order to comply with guidance on supporting the requirement to stay at home and self-isolate, to try and contain the virus. In line with the guidance relating to open spaces the Garden reopened at the beginning of June 2020. Throughout the year the Garden has been able to continue to be open to Friends and members of the public for essential exercise and well-being visits.

The retail operation reopened in the Garden in June 2020 but it became apparent that it was not financially viable to keep this operating and it was therefore closed and mothballed at the end of September 2020 for the time being, until retail sentiment returned and it reopened in April 2021 on a limited basis. Two staff roles were disestablished consequently.

Venue hire activity has been substantially affected because of the restrictions imposed with the vast majority of bookings postponed. The majority have been able to be reorganised and will, it is hoped be able to be accommodated some time in 2021.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report for the year ended 31 December 2020 (continued)

COVID-19 (continued)

The Garden’s catering partners have been very flexible in responding to the different changes in legislation relating to food and drink venues and alternatively offered takeaway and table service. Their trading performance and consequently the income received by the Garden has been affected.

A Board and senior management subcommittee meet monthly to review the performance and financial stability of the company and its trading subsidiary. They monitor and review all the key performance indicators, all major income and expenditure and monitor closely the cash flow to ensure that the company and trading subsidiary are able to meet their liabilities and can continue to trading on an ongoing concern basis.

Volunteers

The Garden's team of volunteers, 135 (2019: 127) in total, provides invaluable support across the charity and their numbers have risen slightly. Recruitment of volunteers throughout the year to support all areas of our activity continues, to improve our care of the Garden, our collections and the standard of service offered to visitors. Around 32 (2019: 46) volunteers support horticulture; 9 (2019: 10) in administration; 17 support the learning and public engagement programme; whilst the largest proportion of volunteers, 77 (2019: 63) in 2020, helped support the Garden. The annual programme of new Guide recruitment was undertaken and the training sessions completed prior to the first lockdown, but the new Guides had little opportunity to practice their newly acquired skills. Guided tours were undertaken in the summer for groups of no more than six until restrictions again made this not possible.

In line with the closing of the Garden due to COVID-19 volunteers have continued to support the Garden remotely, some carrying out research, as well as support with internal communications and they remain ready to return when restrictions allow.

Fundraising statement

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although we do not currently undertake widespread fundraising from the general public, the legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes.” We have an online donation page for the Glasshouse Appeal which was created during the year. At 31 December 2020 £11,440 had been received specifically for this Appeal via the website. Such amounts received are presented in our accounts as “voluntary income” and include legacies and grants.

In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators, professional fund-raisers, or third parties. The day to day management of all income generation is delegated to the senior management team, who are accountable to the Trustees.

The charity is not bound by any undertaking to any regulatory scheme however the charity voluntarily follows The Code of Fundraising Practice.

The charity has received no complaints in relation to fundraising activities. The charity monitors the activities of its employees including those responsible for fundraising with regular reports prepared for Trustees.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Principal Funding Sources

Income is principally generated by the charity from charging visitors admission to enter the Garden, from annual subscriptions from Friends of the Garden and from the Adult education programme. In addition, the commercial activities of CPG Enterprises Limited make a significant contribution to the funding of the charity. The charity also holds long-term investments in the form of an Endowment Fund. This endowment fund was established between 1983-87 from a fundraising appeal which attracted donations from a number of sources. The Trustees have determined that the fund is expendable with both capital and income being available to use at the Trustee’s discretion in support of the Charity’s work. On 11 June 2020 the Trustees instructed the investment fund managers to liquidate sufficient long term investments to provide cash resources of £500,000 in order to ensure that the charity has sufficient liquidity in a period of substantial uncertainty. At 31 December 2020 the endowment fund value was £3,300,797.

Trust and Major Donors 2020

The Garden is fortunate to have the support of a number of Charitable Trusts and Foundations together with many individuals who make donations supporting capital works and the charity as a whole. In 2020 grants were received from the following generous donors:

General

Culture Recovery Fund The David Laing Foundation Garden House School John and Diana Kemp-Welch Charitable Trust Joyce Hogge Legacy The Stonewall Park Charitable Trust

Horticultural Education, Horticultural Trainees and Garden Projects

Dianne Edwards The Barbara Whatmore Charitable Trust The Eranda Foundation The Finnis Scott Foundation The Stanley Smith (UK) Horticultural Trust

Education and Outreach Projects

City Bridge Trust John Lyon’s Charity Mrs R U B White Charitable Trust

Glasshouse Restoration Project

National Lottery Heritage Fund The Band Trust John Balson Legacy The Hobson Charity Ltd The John Armitage Charitable Trust The John Swire 1989 Charitable Trust Lady Sandra Lean Legacy The Peter Stormonth Darling Charitable Trust The Pilgrim Trust

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Trust and Major Donors 2020 (continued)

With special thanks to The John Browne Charitable Trust and Hothouse Challenge Donors, including:

Augusta Charitable Trust Chelsea Physic Garden Florilegium Society The Consuelo and Anthony Brooke Charitable Trust David and Emma Verey Charitable Trust Mr Stephen Edge The Hon William & Mrs Gibson The Golden Bottle Trust The Hon Lady Arabella Lennox-Boyd London Gardens Network The Marchus Trust Bryan Mayou FRCS Mr Michael McGonigle Daniel & Marcella Pinto Mr Michael Prideaux Mrs Sue Prideaux The R H Charitable Trust Libby and David Richwhite Adrian Sassoon Dr Martin Schoernig Sir James & Lady Scott Stevenson Family’s Charitable Trust The Worshipful Society of the Apothecaries of London

CPG350: Sowing the Seeds of Discover Project Daniel & Marcella Pinto

And all our donors who wish to remain anonymous.

Investment Policy

The directors have considered the most appropriate policy for managing the charity’s endowment funds and unrestricted reserves. They have delegated management of these funds to a specialist fund manager, Sarasin & Partners LLP. The investment mandate set for the fund manager is to provide a level of annual income to support the running of the charity, whilst also looking to achieve long term capital growth of the funds.

Reserves

Total funds at the year-end amount to £4,981,386 (2019: £4,856,770) of which £479,789 (2019: £278,449) can only be used for particular restricted purposes as stipulated by the donors. The assets and liabilities attributable to the various funds are shown in notes 18 and 19 to the financial statements which also describe the various funds of the charity.

Unrestricted funds amount to £1,200,800 (2019: £942,864), of which £950,800 (2019 - £692,864) is freely available as the directors consider the Endowment funds of £3,300,797 (2019: £3,635,457) to be available only in exceptional circumstances. The charity relies on the income generated from these long term investments (and also from its own activities) for the day to day upkeep of the Garden and for capital growth to ensure continued income generation in future years.

The directors review annually the reserves policy and have set the target level of free reserves at the equivalent of operational expenditure over the next six months which equates to £907,700. The freely available reserves of £950,800 equate to a little over six months of expenditure reserve and are therefore broadly in line with this reserves policy.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Financial review

The results for the year show net deficit of £40,724 compared with a net surplus of £251,474 in 2019 and a net surplus (after unrealised gains) of £124,616 compared with £742,837 in 2019. After a year of uncertainty because of the impact of COVID-19, the balance sheets shows a positive position, in all the circumstances.

The Garden's trading subsidiary, CPG Enterprises Limited, showed a pre-tax profit of £15,169 (2019: £82,536), before a donation under deed of covenant was made to the Garden.

Income from letting rooms and external events in the Garden was £64,745 (2019: £386,006) which was 4% (2019 - 17%) of total income. The income received from the Friends related to the renewal of annual subscriptions to the Friends’ scheme and the making of new Friends of the Garden generated an income of £272,030 (2019: £295,700).

Total expenditure of £1,801,904 decreased by 9.5% (2019 - £1,991,775). The decreases were in wage, energy, water, printing, stationary and marketing costs.

Going concern

In assessing the impact of COVID-19 on The Chelsea Physic Garden Company group, the Directors have considered all the matters described in the Directors’ Report, including the group’s operations, the impact on subscriptions, donation, and other trading activities, as well as the impact on the group’s investment portfolio. In particular, in order to support the Directors’ assessment of the sustainability of the group’s activities, management continues to prepare monthly cash-flow forecasts based on assumptions, through to the end of 2022 that reflect possible scenarios arising from the impact of COVID-19. The major revenue and expenditure budgets are tracked on a month by month basis to check actual against budget, which is used to adjust the forward assumptions for income and expenditure through 2021 up to December 2022. The analysis undertaken shows that the group remains cash positive throughout without need to liquidate any of the charity’s investment portfolio.

CPG Enterprises Ltd, the wholly owned subsidiary which undertakes certain commercial trading activities of the group, has been subjected to separate stress tests for a period which extends forward to the end of 2022. Whilst the closure of the Garden to visitors between 22 March and 8 June 2020 and the subsequent restrictions that remained in place throughout the year resulted in the cancellation of events, the curtailment of the café’s operations and the closure of the shop within the Garden (reopening on 12 April 2021), together with the curtailment of other trading activities ordinarily undertaken by CPG Enterprises Ltd, the stress tests demonstrate that the trading company remains an independent going concern throughout.

At the date of signing of these financial statements, the directors’ forecasts indicate that the Group will be able to maintain liquidity for a period of at least one year following the date of signing of these financial statements and will therefore be able to continue to trade as a going concern. The directors therefore consider that no material uncertainty exists in relation to going concern for the Group.

Charity Governance Code

The Board of Trustees is committed to good governance and to its own and the charity’s continuous improvement in delivering its purposes most effectively for the public benefit.

The charity is in the process of reviewing the Charity Corporate Governance Code and is considering whether to implement any changes in response.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' report

for the year ended 31 December 2020 (continued)

Plans for Future Periods

In anticipation of the Garden’s 350th anniversary in 2023 the charity continues work on the development of the project’s aims to achieve improvements to and refurbishment of the visitor, horticultural and learning facilities and infrastructure and to improve and enhance the overall accessibility and experience for visitors.

The first phase of this project is the restoration and reinterpretation of the Glasshouses at an estimated cost of £2.8m. The National Lottery Heritage Fund awarded a Development Grant of £172,500 towards the overall development phase costs of £487,241. At 31 December 2020, £201,489 had been received. The directors have designated funds amounting to £250,000 in 2020 from the operating surplus and reserves to be spent as a contribution in order to support this project.

COVID-19

The impact of COVID-19 on future plans has to date had a negligible effect on the timetable to progress activities associated with the Glasshouse capital project as most of the work either has already been achieved or can continue remotely and it is anticipated that progress to completion to the end of RIBA Stage III has been achieved. A Second Round application has been submitted to the National Lottery Heritage Fund and received on 23 March 2021.

Fundraising progress to raise the balance of funds needed for the Glasshouse project to progress from RIBA Stage III to completion is ongoing and substantial progress has been achieved with a specific Challenge fundraising initiative in progress. Active communication with current funders and with the National Lottery Heritage Fund continues throughout.

Other capital projects are modest in nature and only commence when all funding is in in place to meet the full cost of the activity.

Recruitment and Appointment of the Board

All members of the Board give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Note 9 to the financial statements.

The Nominations and Appointments Committee is charged with setting and regularly reviewing the requisite skills and competencies for board members and members of committees/panels, undertaking recruitment searches and recommending appointments as required to ensure there is an appropriate mix of skills.

Trustee Induction and Training

New Trustees are invited and encouraged to attend at the Garden to familiarise themselves with the charity and the context within which it operates, including meeting with senior management and taking tours with the volunteer Guides. They are invited to attend the main Spring briefing and the subsequent quarterly staff and volunteer briefing sessions.

Pay policy of senior staff

A sub-committee of the Board, the Remuneration Committee, is responsible for annually reviewing the pay and conditions of staff and volunteer expense remuneration. Benchmarking is undertaken within the relevant sector of all vacant roles prior to re-advertising. A bi-annual benchmarking programme is undertaken for all roles within the horticultural sector to ensure that the Garden’s pay and conditions are in line with comparable organisations.

The Chelsea Physic Garden Company la MpanY limited by guarantee) Dlr¢¢tors' r•port for the year end 31 December 2020 (¢ontlnuedJ Risk Managamant The directors aclivety Teviewthe m4orriskswhK the chaiity migmface. In pariicvlarthose rting to govemance. reputation, operalions and finance. As part of the risk m119 infrastructure the charity maintsins an adive risk register. business nIlnutty and disaster plan. These are regularfy reeEd lo ensure reV?O and in 2020 the new monitoring arrangements introduced in 2019 became established. The charity annually revEws its insur8nce provision InckKling the te of cor and thls of cow. The 8oard puts great phS on actiNw monitoring of the finanaal risks for toth the charity ar¥J its subsidiary including the liquid funds to setde debts as they fall due. the active management of trade debtors and creditor balances and ensuring suffictent working caplal is availab5e lo Ihe charity and its subsidiary company. The directors believe Ih8t maintsining f reswes at the levds ststed above. comtyned wth regular rev7ews of the controls over key finanLaal systems. will provKJe suffioenl protection f(Y the charity in event of adverse operating conditKJns. The risk assoaated wth the impacts of COVltk19 pandemK are being mcltored closely by management on daily basis and rewted gUlarlY to Trustees. as a minimum kty more regularly rf necessary. including the 6ffecton the chty's ability to deliver its pull benefit agenda and up to dale infomiation on the cash flow position. Provision of information to auditor¥ Each of the persons are direct$ at the Iwne then the tredors' repcrt is approved has confinned that.. so far as that directr iy aware. there ts M relevant audit infomatic¥) of hich the companls auditor is unaware" and that the director has tsken all the sleps thal ought trj have been taken as a director in order to be aware of any infomialion needed by the compan5 auditc wi Connecti wth preparirg his rep)rt and to estsblish that the companrf5 auditor is aNwJTe of that infom8lKy). This report. induding the Stra repryl. was approNrd by Ihe Board I signed on its beha by. 2021 and Mthael Prideaux DiT•clor Cdin Chisholm 12

The Chelsea Physic Garden Company

(a company limited by guarantee)

Directors' responsibilities statement

for the year ended 31 December 2020

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.

Company and charity law requires the directors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company and charity law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the group and parent charity and of the incoming resources and application of resources, including its income and expenditure, of the group for the year. In preparing those financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the group and parent charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Independent auditor’s report To the Directors of The Chelsea Physic Garden Company for the year ended 31 December 2020

Opinion on the financial statements

In our opinion, the financial statements:

give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 December 2020 and of the Group’s incoming resources and application of resources and the Parent Charitable Company’s incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of The Chelsea Physic Garden Company (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities (including consolidated income and expenditure account), the consolidated and charity parent balance sheet, the statement of consolidated cash flows and notes forming part of the financial statements, 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).

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’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 related 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 Group and the Parent 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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Consolidated Report, other than the financial statements and our auditor’s report thereon. The other information comprises: the Directors’ 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

The Chelsea Physic Garden Company

(a company limited by guarantee)

Independent auditor’s report (continued) for the year ended 31 December 2020

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.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ Report, which are included in the Trustees’ report, have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;

adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or
the Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Directors’ 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 determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 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 auditor’s 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

The Chelsea Physic Garden Company

(a company limited by guarantee)

Independent auditor’s report (continued) for the year ended 31 December 2020

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

Based on our understanding of the charitable company and the sector in which it operates, we identified that the principal laws and regulations that directly affect the financial statements to be relevant charities acts in the UK and Ireland. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. We considered the charitable company’s own assessment of the risks that irregularities may occur either as a result of fraud or error. We also considered the risks of non-compliance with other requirements imposed by the Companies House and Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements.

In addition, the charitable company is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: employment law, fundraising regulations, data protection and health and safety legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any.

We understood how the charitable company is complying with those legal and regulatory frameworks by making enquiries to management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of minutes and correspondences with HMRC and the various charity regulators.

Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries of the Board of Trustees and management, and a review of minutes of meetings of those charged with governance. We made enquiries regarding any matters identified as a Serious Incident as reportable to the Charity Commission of England and Wales. We also performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

We did not identify any matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls, including testing journals including those which potentially impact remuneration and other performance targets and evaluating whether there was evidence of bias by management or the Board that represented a risk of material misstatement due to fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Independent auditor’s report (continued) for the year ended 31 December 2020

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s 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 the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Clark (Senior Statutory Auditor)

For and on behalf of BDO LLP, statutory auditor London, United Kingdom

Date: 06 August 2021

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

The Chelsea Physic Garden Company

(a company limited by guarantee)

Consolidated statement of financial activities (including consolidated income and expenditure account) for the year ended 31 December 2020

Note Unrestricted Endowment Restricted funds funds funds £ £ £ Income from: Donations and legacies 2 342,767 - 634,455 Other trading activities 3 200,685 - - Charitable activities 4 403,538 - - Other income 47,752 - - Investments 5 131,983 - - _ _ _ Total income 1,126,725 - 634,455 _ _ _ Expenditure on: Charitable activities 8 1,067,750 - 436,349 Raising funds 9 273,233 24,572 - _ _ _ Total expenditure 7 1,340,983 24,572 436,349 _ _ _ Net income/(expenditure) before gains, losses and transfers 6 (214,258) (24,572) 198,106 Net gain on investments 13 - 165,340 - _ _ _ Net surplus/(deficit) before transfers (214,258) 140,768 198,106 Transfers between funds 18 472,194 (475,428) 3,234 _ _ _ Net movement in funds 257,936 (334,660) 201,340 Reconciliation of funds Total funds brought forward at 1 January 2020 18 942,864 3,635,457 278,449 _ _ __ Total funds carried forward at 31 December 2020 18 1,200,800 3,300,797 479,789	Total 2020 £ 977,222 200,685 403,538 47,752 131,983 _ 1,761,180 _ 1,504,099 297,805 _ 1,801,904 _ (40,724) 165,340 _ 124,616 - _ 124,616 4,856,770 __ 4,981,386	Total 2019 £ 626,196 859,894 604,302 11,521 141,336 _ 2,243,249 _ 1,508,519 483,256 _ 1,991,775 _ 251,474 491,363 _ 742,837 - _ 742,837 4,113,933 __ 4,856,770

All results are derived from continuing activities.

The group has no other recognised gains and losses other than those stated above.

The notes on pages 22 to 44 form part of these financial statements.

The Chelsea Physic Garden Company (a CoMpY limited by guarantee) Consolidated balance Sheot at 31 Docembor 2020 Company number 16908TI 2020 2020 2019 2019 Fixed 898ets Tangible assets Investments 12 13 249.605 3.300.797 278.590 3.635.457 3.550,402 3.914,047 Current assets Stocks Debtors Cash at bank and in hand 14 15 23 22.575 52.041 1,831,333 44.111 121.775 1,136.426 1.W5.949 1.302.312 Credltors: amounts falllng du• wlthin on• year 16 (474,9651 1359.5891 Not curr•nt ass•ts 1.430.984 942,723 Met assets 19 4.981.386 4,856.770 Funds ilnr•strict•d: General Designate Restn"cled lund5 EndowTnenl funds 18 18 18 18 950,8110 250.OIXI 479.789 3.300.797 692,864 250,000 278.449 3.635.457 Total funds 18 4.981.386 4.856,770 The tinancial statements were approved and aulhorised for issue by the Board and auth1$8 for issue on 22 fjuL 2021 Michael Prideaux Director Coh'n ChislKkn Director The notes on pages 22 to 44 fL¥m part of these financial ststements. 19

The Chelsea Physic Garden Company la ¢£p h'mited by guarantee) Ch*lty balan sh••t at 31 D•c•mbor 2020 Company numlw 1690871 2020 2020 2019 2019 FSxod assets Tangible asse15 Investments 12 13 247,372 3,300,897 275.872 3.635.557 3.548269 3.911.429 Currant ass•ts Debtors Cash at bank in harKI 15 25.339 1,758,117 107.895 1.101.755 1.783A56 1.209.650 Cr•ditors-. amounts lalling due within on• y•ar 16 1355.01n (268.9871 Net current assets 1,428.439 N•t assats 19 4.976.708 4.852,092 Funds Unrostrictsd: General Design81ed Reslricted funds Endowment luTrJs 18 18 18 18 946.122 688.186 250,IX 278,449 3.635.457 479.789 3,300,797 Total funds 18 4976.708 4.852.092 As permitted by section 408 of the Companies Act 2006. the Parent Charitable Compan$ proffit and loss account has not been induded in these fmncial slatements. The surplus for the year was £124.616 {2019.. £742,837). The financial stslements were ¥proved a1 aulhorise(I for issue by the 8oard and authorised for issue on Michael Prideaux DirKtor Cdin Ch1 The noles w pages 22 to 44 fomi part of tsse ffinarKaal stslemonts.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Statement of consolidated cash flows at 31 December 2020

Note Cash flows from operating activities Net movement in funds Gain on investments Investment income Depreciation Decrease/(increase) in debtors Increase in creditors Decrease/(increase) in stocks Cash flows from investing activities Investment income 5 Disposal of investments 13 Purchase of PPE 12 Increase in cash for the year Cash at beginning of year Cash at end of year 21,22	2020 £ 124,616 (165,340) (131,983) 28,985 69,734 115,376 21,536 __ 62,924 131,983 500,000 - __ 631,983 694,907 1,136,426 __ 1,831,333 __	2019 £ 742,837 (491,363) (141,336) 37,999 (91,077) 29,429 (7,983) _ 78,506 141,336 - (15,276) _ 126,060 204,566 931,860 __ 1,136,426

The notes on pages 22 to 44 form part of these financial statements.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020

1 Accounting policies

The Chelsea Physic Garden Company is a registered charity and incorporated in England and Wales under the Companies Act 2006. It is a company limited by guarantee. The address of the registered office is given on page 1 of the Directors’ report.

The principal accounting policies adopted, judgements and key sources of estimation or uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared on a historic cost basis except for the revaluation of investments.

The financial statements have been prepared in accordance with 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) - (Charities SORP, 2[nd] Edition (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £.

Exemptions for qualifying entities under FRS 102

The parent charitable company has taken the following disclosure exemptions:

from preparing a statement of cash flows on the basis that it is a qualifying entity and the group cash flow statement included within these financial statements, include the company’s cash flows; and
from the financial instruments disclosures, required under FRS 102 para 11.40 to 11.48A and para 12.26 to 12.29, as the information is provided in the Group financial disclosures.

Going concern

CPG Enterprises Ltd, the wholly owned subsidiary which undertakes certain commercial trading activities of the group, has been subjected to separate stress tests for a period which extends forward to the end of 2022. Whilst the closure of the Garden to visitors between 22 March and 8 June 2020 and the subsequent restrictions that remained in place throughout the year have resulted in the cancellation of events, the curtailment of the café’s operations and the closure of the shop within the Garden (reopening on 12 April 2021), together with the curtailment of other trading activities ordinarily undertaken by CPG Enterprises Ltd, the stress tests demonstrate that the trading company remains an independent going concern throughout.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements

for the year ended 31 December 2020 (continued)

1 Accounting policies (continued)

Going concern (continued)

The directors therefore consider that no material uncertainty exists in relation to going concern for the Group.

Consolidation

These financial statements consolidate the results of the charity and its wholly owned subsidiary of CPG Enterprises Limited on a line by line basis. A separate Statement of Financial Activities, or income and expenditure account for the charitable company itself, is not presented in these accounts because the charitable company has taken advantage of the exemptions offered by Section 408 of the Companies Act 2006.

Income

Donations, grants and legacies

Cash donations and gifts are included in the Statement of Financial Activities when conditions for their receipt have been met. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered likely when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Payments received from the government for furloughed employees are a form of grant. This grant money is receivable as compensation for expenses already incurred, and where this is not in respect of future related costs, is recognised in income in the period in which it becomes receivable and the related expense is incurred.

Commercial trading operations

Shop income comprises revenue recognised by the company in respect of goods supplied, exclusive of Value Added Tax and trade discounts. Lettings income comprises revenue recognised by the company in relation to the lettings of the grounds and associated facility fees.

Income from fundraising events is included in the financial statements in the period in which the fundraising event takes place.

Income from royalties comprises of revenue from the sale and publication of botanical books.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

1 Accounting policies (continued)

Gift Aid

The charity owns the whole of the issued share capital of CPG Enterprises Limited.

Each year CPG Enterprises Limited pays to the charity, under the provisions related to Gift Aid, a sum based on the taxable profits of the company. The payment of Gift Aid is subject to the reserves policy of the gifting entity, and the approval of the charity.

Gift Aid is recognised on the accruals basis in line with the deed of covenant.

Investment income

Dividends are included in the Statement of Financial Activities when they are declared at an amount, which includes the tax credit recoverable from the H M Revenue and Customs.

Interest is included when receivable by the group.

Income from charitable activities

Admissions are recognised when received by the group. Friends subscriptions are recognised over the period to which they relate, any relating to future periods is deferred. Life subscriptions are recognised as they are received.

Expenditure

Expenditure is recognised on an accruals basis in the period in which it is incurred. Costs of raising funds for commercial trading operations comprise the costs associated with the letting of grounds and goods supplied.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

All costs including governance costs are allocated between the expenditure categories of the charity on a basis designed to reflect the use of the resource. Costs relating to a particular activity are charged directly, others are apportioned on an appropriate basis.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the directors. These include the assets of the trading company. The directors use part of the unrestricted funds from time to time for specific projects and set up designated funds to reflect this.

The Endowment Fund is an expendable Endowment and represents investments and cash which continue to be used by the directors in the best interests of the charity. The endowment fund was established between 1983-87 from a fundraising appeal which attracted donations from a number of sources. The Trustees have determined that the fund is expendable with both capital and income being available to use at the Trustee’s discretion in support of the Charity’s work.

Restricted funds can only be used for the particular restricted purposes within the objectives of the charity. Restrictions are imposed by the donor or when funds are raised for specified restricted purposes. The notes to the financial statements provide further details.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements

for the year ended 31 December 2020 (continued)

1 Accounting policies (continued)

Tangible fixed assets

Generally, tangible fixed assets are capitalised if they can be used for more than one year and cost at least £2,500. They are valued at cost.

The charity does not have a policy on revaluation. A nominal value of £1 is put on the main buildings and gardens which are leased in perpetuity for a rent of £5 a year.

Depreciation of fixed assets is charged at rates estimated to write off their costs over the expected useful lives. The rates used are as follows:

Buildings	-	2% of cost
Improvements	-	10% of cost
Office fixtures and equipment	-	20% of cost
Horticultural equipment	-	20% of cost
Computer equipment	-	20% of cost

Stock

Stock is included at the lower of cost and net realisable value and consists of goods for resale.

Investments

Listed investments are stated at closing market value at the balance sheet date. Unrealised gain or loss is calculated as the difference between opening and closing market value, as adjusted for additions and disposals in the year.

Investments held in subsidiary companies are recognised at cost.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash 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.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial 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 at transaction value and subsequently measured at their settlement value.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements

for the year ended 31 December 2020 (continued)

1 Accounting policies (continued)

Leased assets

The group has operating leases. Their annual rentals are charged to the Statement of Financial Activities on a straight line basis over the term of the lease.

Pension scheme contribution

The charity does not operate its own pension scheme. Pension costs relate to payments made by the group to the personal pension plans of employees.

Estimates and judgments

There are not considered to be any significant estimates and judgements involved in the preparation of the financial statements. Those estimates and judgements made, which are not considered to be significant, are covered by the other accounting policies.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

2 Income from donations, grants and legacies

Unrestricted Restricted funds funds £ £ Donations and legacies 128,667 634,455 Government grants 214,100 - __ __ 342,767 634,455 _ _ Total 2019 150,249 475,947	2020 £ 763,122 214,100 __ 977,222 __ 626,196	2019 £ 626,196 - __ 626,196
		__

Government grants of £214,100 relate to grant income received under the Culture Recovery Fund scheme administered by the National Lottery Heritage Fund to support small scale capital expenditure and contribution to core costs including staff wages.

3 Income from other trading activities

Commissions and letting of rooms Shop income Fundraising events Royalties Commercial trading operations	2020 £ 64,745 84,049 49,724 2,167 __ 200,685	2019 £ 386,006 235,343 234,545 4,000 __ 859,894

All income from trading activities was unrestricted in the current and preceding year.

4 Income from charitable activities

Admissions Friends subscriptions Art in the Garden	2020 £ 131,407 272,030 101 __ 403,538 __	2019 £ 308,602 295,700 - _ 604,302 _

All income from charitable activities was unrestricted in the current and preceding year.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

5 Investment income

Income from fixed asset distribution unit funds	2020 £ 131,983 __ 131,983	2019 £ 141,336 __ 141,336

Income from investments was fully unrestricted in the current and preceding year.

6 Net income Net income for the year is stated after charging: Auditor's remuneration Accountancy services Depreciation of tangible fixed assets 7 Total expenditure Staff Premises costs costs Depreciation £ £ £ Charitable activities (note 8) 802,563 142,786 26,534 Raising funds (note 9) 173,248 2,305 2,451 __ __ __ 975,811 145,091 28,985 __ __ __ Staff Premises costs costs Depreciation £ £ £ Charitable activities (note 8) 786,804 180,948 34,967 Raising funds (note 9) 178,073 12,176 3,032 _ _ __ 964,877 193,124 37,999 __ __ __	2020 £ 24,500 4,800 28,985 __ Other costs £ 532,216 119,801 __ 652,017 __ Other costs £ 505,800 289,975 __ 795,775 __	2019 £ 19,950 4,575 37,999 _ Total 2020 £ 1,504,099 297,805 __ 1,801,904 __ Total 2019 £ 1,508,519 483,256 _ 1,991,775 __

Total expenditure for the year was £1,801,904 (2019: £1,991,775) of which £436,349 was restricted (2019: £286,842), £1,340,983 was unrestricted (2019: £1,679,645) and £24,572 (2019: £25,288) related to endowment funds.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements

for the year ended 31 December 2020 (continued)

8 Expenditure on charitable activities

	Direct	Support	Total 2020
	£	£	£
Science and horticulture	453,119	-	453,119
Educational programmes	122,537	-	122,537
Other projects	687,354	241,089	928,443
	__	__	__
	1,263,010	241,089	1,504,099
	__	__	__
	Direct	Support	Total 2019
	£	£	£
Science and horticulture	611,348	-	611,348
Educational programmes	108,548	-	108,548
Other projects	526,851	261,772	788,623
	__	__	__
	1,246,747	261,772	1,508,519
	__	__	__

Expenditure on charitable activities in the year was £1,504,519 (2019: £1,508,519) of which £436,349 was restricted (2019: £286,842), £1,067,750 was unrestricted (2019: £1,221,677) and £Nil was relating to endowment funds (2019: £Nil).

Analysis of direct costs

Wages and Salaries Depreciation Materials Equipment Repairs, maintenance & cleaning Security Advertising and marketing Education costs Recruitment Rent, rates, water, heat & light Travel, subsistence & entertaining Insurance Printing, postage & stationary Telephone and internet Ticket commissions Professional fees Other costs Total	Total 2020 £ 655,293 24,981 7,166 1,949 111,658 6,066 44,304 23,954 16,330 23,240 5,093 30,938 39,293 4,614 8,247 195,546 54,338 __ 1,263,010	Total 2019 £ 620,535 29,972 17,426 9,549 115,302 7,956 41,325 48,055 17,295 33,339 27,362 30,240 49,595 5,286 3,040 93,216 97,254 __ 1,246,747

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

8 Expenditure on charitable activities (continued)

Analysis of support costs

Wages and Salaries Depreciation Repairs, maintenance & cleaning Security Advertising and marketing Recruitment Rent, rates, water, heat & light Travel, subsistence & entertaining Printing, postage & stationary Telephone and internet Professional fees Other costs Governance costs Total	Total 2020 £ 137,270 1,553 - 377 2,754 1,015 1,445 201 2,415 287 11,752 2,938 79,082 __ 241,089	Total 2019 £ 166,269 4,995 17,469 1,326 6,808 2,883 5,557 2,904 7,939 881 13,994 6,614 24,133 __ 261,772

Support costs are allocated on an apportionment basis as follows:

	2020	2019
Total employees	29	30
Support staff	2	4
% for apportionment	6.9%	13.3%

Any cost that can be directly attributed to the charitable activities are allocated before any apportionment of costs.

The % of expenditure allocated to support costs has decreased due to the reduction in the number of support staff.

Governance costs relate to audit and accountancy fees, legal fees and finance charges.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

9 Expenditure on raising funds

Wages and salaries Expenditure of CPG Enterprises (including depreciation) Fundraising costs of charity Investment manager fees Costs incurred on fundraising fair	2020 £ 173,248 60,641 31,309 24,572 8,035 __ 297,805	2019 £ 178,073 190,909 35,685 25,288 53,301 __ 483,256

Expenditure on raising funds for the year was £297,805 (2019: £483,256) of which £24,572 (2019: £25,288) related to endowment funds and £273,233 (2019: £457,968) related to unrestricted funds.

Other than those costs that wholly relate to fundraising costs all other expenditure on raising funds is based on an apportionment basis as follows:

	2020	2019
Total employees	29	30
Fundraising staff	2	2
% for apportionment	6.9%	6.7%

10 Directors and employees

Wages and salaries Social security costs Pension costs Temporary staff	Group 2020 £ 860,152 66,572 47,467 1,620 __ 975,811	Group 2019 £ 857,279 73,989 33,609 - __ 964,877

The group does not operate its own pension scheme. Pension costs relate to payments made by the group to the personal pension plans of employees.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements

for the year ended 31 December 2020 (continued)

10 Directors and employees (continued)

Average number of employees as a headcount:

Charitable Administration and support Fundraising	Group 2020 Number 25 2 2 __ 29	Group 2019 Number 24 4 2 __ 30

The group was helped by a substantial number of volunteers, approximately 135 (2019: 127) throughout the year.

The key management personnel of the group, include a number of senior managers across the group who together have authority and responsibility for planning, directing and controlling the activities of the group. The total employment benefits paid to key management personnel of the group were £455,861 (2019: £446,711).

Salary range for employees earning £60,000 p.a. or more £60,000 - £69,999 £70,000 - £79,999 £80,000 - £89,999 £90,000 - £99,999	2020 1 - - 1	2019 1 - 1 -

Redundancy, restructuring and termination costs relating to a number of employees were £8,415 (2019: £Nil).

Government grants relating to furloughed staff were received of £46,723 (2019: £Nil). The furlough claim is included within Other Income.

Directors’ remuneration and expenses

None of the directors received any remuneration. During the year one director received £127 expense reimbursement (2019 – £223 expense reimbursed).

11 Taxation

The Chelsea Physic Garden Company is a registered charity and has no liability to taxation on its income for the year. Tax recovered from voluntary income received under gift aid is recognised when the related income is receivable and is allocated to the income category to which the income relates.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

12 Tangible assets

Group

Buildings Office and fixtures and Horticultural improvements equipment equipment £ £ £ Cost At 1 January 2020 695,457 209,686 15,167 Additions - - - _ ________ ________ At 31 December 2020 695,457 209,686 15,167 _ _ __ _Depreciation At 1 January 2020 459,287 176,857 15,048 Charge for the year 17,968 6,250 119 _ ________ ________ At 31 December 2020 477,255 183,107 15,167 _ _ __ _Net book value At 31 December 2020 218,202 26,579 - _ _ __ At 31 December 2019 236,170 32,829 119	Computer equipment £ 111,691 - _ 111,691 _ 102,219 4,648 _ 106,867 _ 4,824 __ 9,472	Total £ 1,032,001 - _ 1,032,001 _ 753,411 28,985 _ 782,396 _ 249,605 __ 278,590

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

12 Tangible assets (continued)

Charity

Buildings Office and fixtures and Horticultural improvements equipment equipment £ £ £ Cost At 1 January 2020 695,457 201,573 15,167 Additions - - - _ ________ ________ At 31 December 2020 695,457 201,573 15,167 _ _ __ _Depreciation At 1 January 2020 459,287 171,462 15,048 Charge for the year 17,968 5,765 119 _ ________ ________ At 31 December 2020 477,255 177,227 15,167 ________ ________ ________ _Net book value At 31 December 2020 218,202 24,346 - _ _ _ At 31 December 2019 236,170 30,111 119 _ _ _ 13 Fixed asset investments 13a Listed investments Market value at 1 January 2020 Disposals Gain in the year Market value at 31 December 2020	Computer equipment £ 111,691 - _ 111,691 _ 102,219 4,648 _ 106,867 _ 4,824 _ 9,472 _ 2020 £ 3,635,457 (500,000) 165,340 __ 3,300,797	Total £ 1,023,888 - _ 1,023,888 _ 748,016 28,500 _ 776,516 _ 247,372 _ 275,872 _ 2019 £ 3,144,094 - 491,363 __ 3,635,457
		_
		_

Investments are held in listed funds managed by Sarasin & Partners LLP.

The historical cost of the listed investments at 31 December 2020 was £2,876,071 (2019 - £3,358,994).

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

13b Investments in subsidiaries

Shares in CPG Enterprises Limited at cost Total fixed asset investments	Group 2020 £ 3,300,797	Charity 2020 £ 3,300,897	Charity 2020 £ 100 __ Group 2019 £ 3,635,457	Charity 2019 £ 100 __ Charity 2019 £ 3,635,557

The wholly owned trading subsidiary, CPG Enterprises Limited (03140004), is registered in the United Kingdom. The principal activity of CPG Enterprises Limited is the running of the shop at The Chelsea Physic Garden and the letting of the grounds of the charity.

At 31 December 2020 the income of CPG Enterprises was £151,007 (2019: £625,484) and expenditure was £135,838 (2019: £542,948). The net assets of CPG Enterprises Limited were £4,778 (2019: £4,778) and the retained profit to that date was £4,678 (2019: £4,678), after payment to Chelsea Physic Garden Company under Gift Aid of £15,169 (2019 - £82,536).

14 Stocks

Goods for resale	Group 2020 £ 22,575	Charity 2020 £ -	Group 2019 £ 44,111	Charity 2019 £ -

There is no material difference between what is stated above and the recoverable amount.

15 Debtors

Amounts falling due within one year: Trade debtors Amounts owed by subsidiary Prepayments and accrued income Other debtors	Group 2020 £ 29,458 - 16,735 5,848 __ 52,041	Charity 2020 £ 2,756 - 16,735 5,848 __ 25,339	Group 2019 £ 47,232 - 70,196 4,347 __ 121,775	Charity 2019 £ 14,508 18,844 70,196 4,347 __ 107,895

The loan to the subsidiary is unsecured, interest free and repayable on demand.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

16 Creditors: amounts falling due within one year

Trade creditors Amounts owed to subsidiary Other taxation and social security Accruals Deferred income	Group 2020 £ 26,155 - 22,813 46,027 379,970 __ 474,965	Charity 2020 £ 21,636 15,422 15,040 39,027 263,892 __ 355,017	Group 2019 £ 25,484 - 51,758 42,070 240,277 __ 359,589	Charity 2019 £ 25,483 - 45,714 34,486 163,304 __ 268,987

The loan from the subsidiary is unsecured, interest free and repayable on demand.

17 Deferred income reconciliation

Balance as at 1 January 2020 Amount released to income earned from charitable activities Amount deferred in the year Balance at 31 December 2020	Group 2020 £ 240,277 (240,277) 379,970 __ 379,970	Charity 2020 £ 163,304 (163,304) 263,892 __ 263,892	Group 2019 £ 203,534 (203,534) 240,277 __ 240,277	Charity 2019 £ 168,744 (168,744) 163,304 __ 163,304

Deferred income relates mainly to the income received from memberships in relation to the next financial period. Other amounts relate to income received in advance of events booked for the next financial period.

The Chelsea Physic Garden Company (a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

18 Analysis of charitable funds

Group – current year

Group – current year
*Unrestricted funds* General fund Designated projects funds Total unrestricted funds Endowment fund *Restricted funds* Horticultural Trainees Historic Glasshouse Florilegium Society Anniversary Project Digitisation Project John Lyon’s Education Outreach Acoustic Panels Project Band Trust Education Outreach Sowing The Seeds Of Discovery/Daniel Pinto Turning Point Garden Group Education Outreach City Bridge Trust Garden Fund Restricted Donations Judith Bronkhurst Donation R.U.B. White Charitable Trust Community Outreach Oak Foundation Education Outreach Education and Outreach/Young Offenders The Art & healing Power of Plants Glasshouses Restorations HLF Funding Friends Scheme Review Medicinal Plants Research Legacy Roger Melvin Monks Horticulture Students Travel John Lyon’s family Activity days Total restricted funds Total funds	At 1 January 2020 £ 692,864 250,000 _ 942,864 _ 3,635,457 _ 11,678 24,342 2,214 9,554 20,983 5,088 5,819 - 66 523 21,885 1,666 141 5,546 3,515 2,683 4,861 155,340 267 600 418 1,260 _ 278,449 _ 4,856,770 _	Income Expenditure £ £ 1,126,725 (1,340,983) - - _ _ 1,126,725 (1,340,983) _ _ - (24,572) _ _ 23,000 (16,571) - - - (508) - - 22,000 (18,805) - - - (3,680) 105,000 (108,234) - - - (188) 50 (26,500) 1,000 - - - 5,000 (684) - (360) - (1,666) - (1,827) 478,405 (256,726) - - - (600) - - - - _ _ 634,455 (436,349) _ _ 1,761,180 (1,801,904) _ _	Net gain At on 31 December Transfers investments 2020 £ £ £ 472,194 - 950,800 - - 250,000 _ _ __ 472,194 - 1,200,800 _ _ __ (475,428) 165,340 3,300,797 _ _ __ - - 18,107 - - 24,342 - - 1,706 - - 9,554 (4,565) - 19,613 - - 5,088 - - 2,139 3,234 - - - - 66 - - 335 4,565 - - - - 2,666 - - 141 - - 9,862 - - 3,155 - - 1,017 - - 3,034 - - 377,019 - - 267 - - - - - 418 - - 1,260 _ _ __ 3,234 - 479,789 _ _ __ - 165,340 4,981,386 _ _ __
				3,300,797 __ 18,107 24,342 1,706 9,554 19,613 5,088 2,139 - 66 335 - 2,666 141 9,862 3,155 1,017 3,034 377,019 267 - 418 1,260 __
				479,789 __
				4,981,386 __

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

18 Analysis of charitable funds (continued)

Group – previous year

*Unrestricted funds* General fund Designated projects funds Total unrestricted funds Endowment fund *Restricted funds* Horticultural Trainees Historic Glasshouse Florilegium Society Anniversary Project Digitisation Project John Lyon’s Education Outreach Cool Fernery Acoustic Panels Project Band Trust Education Outreach Sowing The Seeds Of Discovery/Daniel Pinto Turning Point Garden Group Education Outreach Miller Education Garden City Bridge Trust Garden Fund Restricted Donations Judith Bronkhurst Donation R.U.B. White Charitable Trust Community Outreach Oak Foundation Education Outreach Education and Outreach/Young Offenders The Art & healing Power of Plants Glasshouses Restorations HLF Funding Friends Scheme Review Medicinal Plants Research Legacy Roger Melvin Monks Horticulture Students Travel John Lyon’s family Activity days Total restricted funds Total funds*	At 1 January 2019 £ 781,334 100,000 _ 881,334 _ 3,144,094 _ - 24,342 2,214 10,856 3,506 958 7,492 3,722 12,183 216 523 1,588 6,464 1,000 1,101 5,000 4,657 2,683 - - - - - - _ 88,505 _ 4,113,933 _	Income Expenditure £ £ 1,767,302 (1,679,645) - - _ _ 1,767,302 (1,679,645) _ _ - (25,288) _ _ 52,251 (40,573) - - - - - (1,302) 22,000 (4,523) - (958) - (2,404) 15,000 (12,903) 105,100 (118,122) - (150) - - - (1,588) 41,300 (25,879) 666 - - (960) 5,000 (4,454) - (1,142) - - 25,000 (20,139) 201,489 (46,149) 3,070 (2,803) 2,600 (2,000) 1,001 (583) 1,470 (210) _ _ 475,947 (286,842) _ _ 2,243,249 (1,991,775) _ _	At Net gains on 31 December Transfers investments 2019 £ £ £ (176,127) - 692,864 150,000 - 250,000 _ _ _ (26,127) - 942,864 _ _ _ 25,288 491,363 3,635,457 _ _ _ - - 11,678 - - 24,342 - - 2,214 - - 9,554 - - 20,983 - - - - - 5,088 - - 5,819 839 - - - - 66 - - 523 - - - - - 21,885 - - 1,666 - - 141 - - 5,546 - - 3,515 - - 2,683 - - 4,861 - - 155,340 - - 267 - - 600 - - 418 - - 1,260 _ _ _ 839 - 278,449 _ _ _ - 491,363 4,856,770 _ __ __	At Net gains on 31 December Transfers investments 2019 £ £ £ (176,127) - 692,864 150,000 - 250,000 _ _ _ (26,127) - 942,864 _ _ _ 25,288 491,363 3,635,457 _ _ _ - - 11,678 - - 24,342 - - 2,214 - - 9,554 - - 20,983 - - - - - 5,088 - - 5,819 839 - - - - 66 - - 523 - - - - - 21,885 - - 1,666 - - 141 - - 5,546 - - 3,515 - - 2,683 - - 4,861 - - 155,340 - - 267 - - 600 - - 418 - - 1,260 _ _ _ 839 - 278,449 _ _ _ - 491,363 4,856,770 _ __ __
				3,635,457 _ 11,678 24,342 2,214 9,554 20,983 - 5,088 5,819 - 66 523 - 21,885 1,666 141 5,546 3,515 2,683 4,861 155,340 267 600 418 1,260 _
				278,449 __
				4,856,770 __

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

18 Analysis of charitable funds (continued)

Charity – current year

Charity – current year
*Unrestricted funds* General fund Designated projects funds Total unrestricted funds Endowment fund *Restricted funds* Horticultural Trainees Historic Glasshouse Florilegium Society Anniversary Project Digitisation Project John Lyon’s Education Outreach Acoustic Panels Project Band Trust Education Outreach Sowing The Seeds Of Discovery/Daniel Pinto Turning Point Garden Group Education Outreach City Bridge Trust Garden Fund Restricted Donations Judith Bronkhurst Donation R.U.B. White Charitable Trust Community Outreach Oak Foundation Education Outreach Education and Outreach/Young Offenders The Art & healing Power of Plants Glasshouses Restorations HLF Funding Friends Scheme Review Medicinal Plants Research Legacy Roger Melvin Monks Horticulture Students Travel John Lyon’s family Activity days Total restricted funds Total funds	At 1 January 2020 £ 688,186 250,000 _ 938,186 _ 3,635,457 _ 11,678 24,342 2,214 9,554 20,983 5,088 5,819 - 66 523 21,885 1,666 141 5,546 3,515 2,683 4,861 155,340 267 600 418 1,260 _ 278,449 _ 4,852,092 _	Income Expenditure £ £ 993,936 (1,208,194) - - _ _ 993,936 (1,208,194) _ _ - (24,572) _ _ 23,000 (16,571) - - - (508) - - 22,000 (18,805) - - - (3,680) 105,000 (108,234) - - - (188) 50 (26,500) 1,000 - - - 5,000 (684) - (360) - (1,666) - (1,827) 478,405 (256,726) - - - (600) - - - - _ _ 634,455 (436,349) _ _ 1,628,391 (1,669,115) _ _	Net gains At on 31 December Transfers investments 2020 £ £ £ 472,194 - 946,122 - - 250,000 _ _ __ 472,194 - 1,196,122 _ _ __ (475,428) 165,340 3,300,797 _ _ __ - - 18,107 - - 24,342 - - 1,706 - - 9,554 (4,565) - 19,613 - - 5,088 - - 2,139 3,234 - - - - 66 - - 335 4,565 - - - - 2,666 - - 141 - - 9,862 - - 3,155 - - 1,017 - - 3,034 - - 377,019 - - 267 - - - - - 418 - - 1,260 _ _ __ 3,234 - 479,789 _ _ __ - 165,340 4,976,708 _ _ __
				3,300,797 __ 18,107 24,342 1,706 9,554 19,613 5,088 2,139 - 66 335 - 2,666 141 9,862 3,155 1,017 3,034 377,019 267 - 418 1,260 __
				479,789 __
				4,976,708 __

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements

for the year ended 31 December 2020 (continued)

18 Analysis of charitable funds (continued)

Charity – previous year

Charity – previous year
*Unrestricted funds* General fund Designated projects funds Total unrestricted funds Endowment fund *Restricted funds* Horticultural Trainees Historic Glasshouse Florilegium Society Anniversary Project Digitisation Project John Lyon’s Education Outreach Cool Fernery Acoustic Panels Project Band Trust Education Outreach Sowing The Seeds Of Discovery/Daniel Pinto Turning Point Garden Group Education Outreach Miller Education Garden City Bridge Trust Garden Fund Restricted Donations Judith Bronkhurst Donation R.U.B. White Charitable Trust Community Outreach Oak Foundation Education Outreach Education and Outreach/Young Offenders The Art & healing Power of Plants Glasshouses Restorations HLF Funding Friends Scheme Review Medicinal Plants Research Legacy Roger Melvin Monks Horticulture Students Travel John Lyon’s family Activity days Total restricted funds Total funds*	At 1 January 2019 £ 776,656 100,000 _ 876,656 _ 3,144,094 _ - 24,342 2,214 10,856 3,506 958 7,492 3,722 12,183 216 523 1,588 6,464 1,000 1,101 5,000 4,657 2,683 - - - - - - _ 88,505 _ 4,109,255 _	Income Expenditure £ £ 1,484,333 (1,396,676) - - _ _ 1,484,333 (1,396,676) _ _ - (25,288) _ _ 52,251 (40,573) - - - - - (1,302) 22,000 (4,523) - (958) - (2,404) 15,000 (12,903) 105,100 (118,122) - (150) - - - (1,588) 41,300 (25,879) 666 - - (960) 5,000 (4,454) - (1,142) - - 25,000 (20,139) 201,489 (46,149) 3,070 (2,803) 2,600 (2,000) 1,001 (583) 1,470 (210) _ _ 475,947 (286,842) _ _ 1,960,280 (1,708,806) _ _	Net gain/(loss) At on 31 December Transfers investments 2019 £ £ £ (176,127) - 688,186 150,000 - 250,000 _ _ _ (26,127) - 938,186 _ _ _ 25,288 491,363 3,635,457 _ _ _ - - 11,678 - - 24,342 - - 2,214 - - 9,554 - - 20,983 - - - - - 5,088 - - 5,819 839 - - - - 66 - - 523 - - - - - 21,885 - - 1,666 - - 141 - - 5,546 - - 3,515 - - 2,683 - - 4,861 - - 155,340 - - 267 - - 600 - - 418 - - 1,260 _ _ _ 839 - 278,449 _ _ _ - 491,363 4,852,092 _ __ __
				3,635,457 _ 11,678 24,342 2,214 9,554 20,983 - 5,088 5,819 - 66 523 - 21,885 1,666 141 5,546 3,515 2,683 4,861 155,340 267 600 418 1,260 _
				278,449 __
				4,852,092 __

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

18 Analysis of charitable funds (continued)

Restricted funds have been established to provide financial support for specific projects as below:

Horticultural Trainees	-	A one year training programme for students interested in pursuing a
		career in horticulture.
Historic Glasshouse	-	The replacement of one of the range of Foster & Pearson clearspan
		glasshouses originally constructed between 1901-07. The structure
		will provide greater space for growing tender plants and an additional
		educational facility.
Education Outreach	-	A donation to fund education outreach including employing an
		Outreach Officer to work with School and community projects in target
		London boroughs including Hammersmith & Fulham, Kensington &
		Chelsea, City of Westminster, City, Camden, Brent Ealing, Harrow and
		Barnet.
The Florilegium Society 20th	-	An exhibition of original artwork from members of the Florilegium
anniversary exhibition		Society at the Physic Garden during August 2015 with associated
		marketing and publicity.
Digitisation Project	-	A project to start digitising the Physic Garden's archive of books,
		papers and the Florilegium's original artwork including purchase of a
		hi- resolution scanner and associated software.
Acoustic Panels Project	-	A project to complete the introduction of acoustic panels along
		Embankment reducing the impact of traffic noise along this boundary.
		Generous donations were received from Grandiflora Patrons enabling
		the panels to be introduced and subsequently the planting in this area
		to is being augmented and improved.
Horticultural Education,	-	Ongoing annual fundraising to support the horticultural trainee
Trainees and Interns		programme, the intern and the volunteer training and development
		programme. It includes travel and training, specific skills
		development and supports interns with modest travel and
		subsistence allowances.
Education and Outreach	-	Funds raised to support the education programme including for
		specific initiatives including the Shelf Life project and the outreach
		programme with Waltham Forest Young offenders institute together
		with the ongoing programme of on-site and off-site and web-based
		teaching and interaction with schools, colleges and community
		groups.
City Bridge Trust	-	A grant to fund an Education Outreach Officer to further the Gardens
		schools and community outreach.
Education and Outreach/Young	-	A donation to enable the Garden to continue working with the
Offenders		Waltham Forest Young Offenders and education and outreach.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

18 Analysis of charitable funds (continued)

Band Trust Education Outreach	-	Donations to fund education and outreach activity for three years to
		August 2020.
Sowing the Seeds of	-	Donations to fund the CPG350: Sowing the Seeds of Discovery
Discovery/Daniel Pinto		project to achieve improvements to and refurbishment of the visitor,
		horticultural and learning facilities and infrastructure and to improve
		and enhance the overall accessibility and experience for visitors.
Turning Point Garden Group	-	A donation for the development of an education garden and the
		running of a gardening group for adults in recovery.
Garden Fund Restricted	-	Donations, including in memoriam donations, received specifically
Donation		for the Garden horticulture activities.
Judith Bronkhust Donation	-	A donation to fund the purchase of terracotta plant pots.
R.U.B White Charitable Trust	-	A donation to support the community outreach programme.
Community Outreach
Oak Foundation Education	-	A donation to support educational outreach initiatives.
Outreach
The Art & Healing Power of	-	A collaboration between the charity and the NHS Royal Brompton
Plants		Hospital to stage an exhibition of artwork at the Garden and
		hospital and undertake activities with patients undergoing long term
		treatment.
Glasshouses Restorations HLF	-	Restoration and reinterpretation of the Garden’s glasshouses
Funding		together with supporting activity programmes, interpretation and
		plant collections review.
Friends Scheme Review	-	A paid intern undertook a review of the Friends scheme including
		questionnaires to Friends, benchmarking and proposals for
		improvements.
Medicinal Plants Research	-	A paid intern undertook research into the Garden’s historic and
		current medicinal plant collections, their link to botanists and to the
		original drugs developed from them.
Legacy Roger Melvin Monks	-	A legacy from Roger M. Monks to assist needy overseas students
Horticulture Students Travel		to pursue study at the Garden by supporting travel costs.
John Lyons Charity Family	-	A grant from the John Lyon’s Charity to provide free places for low
Activity Days		income families on Family Activity Days and free entry to the
		Garden for Sunday Fundays.

Unrestricted funds are used in accordance with the charitable objectives at the discretion of the directors. The directors use part of the unrestricted funds from time to time for specific projects and set up designated funds to reflect this.

The directors have designated £250,000 of the general funds of the charity. This represents funds to be used to continue to develop plans for programmes of activities and to refurbish the buildings at the Garden, restoration of glasshouses, update the visitors, education and learning facilities and refurbish the catering and retail facilities.

The Endowment Fund is an expendable Endowment and represents investments and cash which continue to be used by the directors in the best interests of the charity. The endowment fund was established between 1983-87 from a fundraising appeal which attracted donations from a number of sources. The Trustees have determined that the fund is expendable with both capital and income being available to use at the Trustee’s discretion in support of the Charity’s work.

A transfer of £475,000 was made out of endowment funds during the year. At the onset of the financial impact of the pandemic the directors authorised the sale of a proportion of the investment portfolio in order to raise cash to ensure that the company has sufficient working capital to continue to meet it liabilities. These are held as general funds for the use as needed.

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

19 Analysis of net assets between funds

Group – current year General funds Designated funds Endowment funds Restricted funds Group – previous year General funds Designated funds Endowment funds Restricted funds Charity – current year General funds Designated funds Endowment funds Restricted funds Charity – previous year General funds Designated funds Endowment funds Restricted funds	Tangible fixed assets Investments £ £ 249,605 - - - - 3,300,797 - - _ _ 249,605 3,300,797 _ _ Tangible fixed assets Investments £ £ 278,590 - - - - 3,635,457 - - _ _ 278,590 3,635,457 _ _ Tangible fixed assets Investments £ £ 247,372 100 - - - 3,300,797 - - _ _ 247,372 3,300,897 _ _ Tangible fixed assets Investments £ £ 275,872 100 - - - 3,635,457 - - _ _ 275,872 3,635,557	Current assets £ 1,176,160 250,000 - 479,789 _ 1,905,949 _ Current assets £ 773,863 250,000 - 278,450 _ 1,302,312 _ Current assets £ 1,053,667 250,000 - 479,789 _ 1,783,456 _ Current assets £ 681,201 250,000 - 278,449 __ 1,209,650	Current liabilities £ (474,965) - - - _ (474,965) _ Current liabilities £ (359,589) - - - _ (359,589) _ Current liabilities £ (355,017) - - - _ (355,017) _ Current liabilities £ (268,987) - - - __ (268,987)	Total £ 950,800 250,000 3,300,797 479,789 _ 4,981,386 _ Total £ 692,864 250,000 3,635,457 278,450 _ 4,856,770 _ Total £ 946,122 250,000 3,300,797 479,789 _ 4,976,708 _ Total £ 688,186 250,000 3,635,457 278,449 __ 4,852,092

The Chelsea Physic Garden Company

(a company limited by guarantee)

Notes forming part of the financial statements

for the year ended 31 December 2020 (continued)

20 Liability to the members

Every member of the company undertakes to contribute an amount not exceeding £1 to the assets of the charitable company in the event of the company being wound up while he is a member, or within one year after he ceases to be a member. This contribution is for the payment of the debts and liabilities of the charitable company contracted before he ceases to be a member and of costs of winding up.

21 Analysis of cash and cash equivalents

Cash at bank and in hand	Group 2020 £ 1,831,333	Charity 2020 £ 1,758,117	Group 2019 £ 1,136,426	Charity 2019 £ 1,101,755

22 Analysis of net debt

At 31 December 2020 the group and charity had no loans classified as debt.

23 Commitments under operating leases

At 31 December 2020 the group and charity had future minimum lease payments under non-cancellable operating leases as follows:

No later than 1 year Later than 1 year and no later than 5 years	2020 £ 1,279 - __ 1,279	2019 £ 4,470 1,279 __ 5,749

The Chelsea Physic Garden Company

Contents

Page:

The Chelsea Physic Garden Company

Directors' report

Status and Constitution

Directors and members of the Board

Senior Management Team

The Chelsea Physic Garden Company

Directors' report

Professional advisors

Organisation and Structure

The Chelsea Physic Garden Company

Directors' report

Organisation and Structure (continued)

Related parties and co-operation with other organisations

The Chelsea Physic Garden Company

Directors' report

Related parties and co-operation with other organisations (continued)

Aims and Objectives

Purpose and principal activities

The Chelsea Physic Garden Company

Directors' report

Ensuring our work delivers our aims for the public benefit

Public benefit statement

Our activities

The Chelsea Physic Garden Company

Directors' report

Our activities (continued)

Future vision

COVID-19

The Chelsea Physic Garden Company

COVID-19 (continued)

Volunteers

Fundraising statement

The Chelsea Physic Garden Company

Directors' report

for the year ended 31 December 2020 (continued)

Principal Funding Sources

Trust and Major Donors 2020

Education and Outreach Projects

The Chelsea Physic Garden Company

Directors' report

Trust and Major Donors 2020 (continued)

With special thanks to The John Browne Charitable Trust and Hothouse Challenge Donors, including:

Investment Policy

Reserves

The Chelsea Physic Garden Company

Directors' report

Financial review

Going concern

Charity Governance Code

The Chelsea Physic Garden Company

Directors' report

Plans for Future Periods

COVID-19

Recruitment and Appointment of the Board

Trustee Induction and Training

Pay policy of senior staff

The Chelsea Physic Garden Company

Directors' responsibilities statement

for the year ended 31 December 2020

The Chelsea Physic Garden Company

Independent auditor’s report To the Directors of The Chelsea Physic Garden Company for the year ended 31 December 2020

Opinion on the financial statements

Basis for opinion

Conclusions related to going concern

Other information

The Chelsea Physic Garden Company

Independent auditor’s report (continued) for the year ended 31 December 2020

Other Companies Act 2006 reporting

Responsibilities of Trustees

Auditor’s responsibilities for the audit of the financial statements

The Chelsea Physic Garden Company

Independent auditor’s report (continued) for the year ended 31 December 2020

Extent to which the audit was capable of detecting irregularities, including fraud

The Chelsea Physic Garden Company

Independent auditor’s report (continued) for the year ended 31 December 2020

Use of our report