## **WESSEX ARCHAEOLOGY LIMITED**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
**REGISTERED COMPANY NUMBER: 01712772 (England and Wales) REGISTERED CHARITY NUMBER: 287786**
## **WESSEX ARCHAEOLOGY LIMITED**
## **CONTENTS**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
||**Page**|
|---|---|
|Executive Summary and Chair’s Report|1|
|Trustees’ Report (incorporating the Strategic Report)|3|
|Independent Auditor’s Report|16|
|Statement of Financial Activities|19|
|Balance Sheet|20|
|Cash Flow Statement|21|
|Notes to the Financial Statements|22|
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Executive Summary**
Wessex Archaeology Limited (Wessex) aims to further the advancement of education, the arts, culture, heritage and science. It was set up as a charitable trust in in 1979 and become a company in 1983. Wessex derives most of its income from its primary purpose trading in the provision of professional heritage services to businesses and government organisations throughout the UK and internationally. In addition to the public benefit delivered directly by these activities, the surplus generated by the Company is invested in educational and community engagement initiatives.
Wessex serves and delivers value for its clients by deploying a wide range of technical, interpretative, advisory and public engagement capabilities and is recognised as a leader in innovation and the provision of high-quality services for archaeology and heritage sectors.
Headquartered in Salisbury, where it has been based for 40 years, Wessex maintains regional offices in Edinburgh, Sheffield, Meopham (Kent) and Bristol. During the financial year 2022/23 it generated a consolidated annual income of £22.8 million and employed an average of 390 staff.
Wessex Archaeology Limited owns a 100% trading subsidiary, Wessex Archaeology Ventures Limited, which in turn has a 100% owned private company, Trident WA Gmbh, registered in Rostock, Germany. Since January 2020 Trident WA Gmbh has been trading as Trident Archäologie and in January 2022 began offering services from its branch office in Rotterdam in the Netherlands. The three companies are collectively referred to as the “Group” throughout this report.
## **Chair’s Report**
After many years of strong performance, the economic challenges that were evident in the wider economy were reflected in the performance of Wessex in the 2022-23 Financial Year. Business uncertainty presented us with challenges as the Charity experienced difficult trading conditions for the first 9 months of the year, although there was an improvement in activity for the final 3 months of the year. The poor trading conditions resulted in a reported consolidated loss of £1.8m.
In particular, trading conditions were made more difficult during the year as the uncertainties arising from the fallout from COVID, the war in Ukraine and macro-economic changes had an effect on the confidence of some of our clients and have created some uncertainty surrounding larger infrastructure projects.
In light of the difficult trading conditions, the Trustees and the Executive and Management Teams reviewed operations across the whole business to ensure that the Charity’s financial position remained stable and that the necessary changes were made to ensure a secure future for the Charity. During this process there were some staff reductions in the later part of the year. These staffing decisions were carefully considered in the light of future budgets, expected workflows and plans for the Charity. As a result of the changes made to some areas of the business, this was a demanding year for our staff who continued to work flexibly to support the business.
Throughout the year investments were made in vehicles, survey equipment, IT infrastructure, staff training, improved management support and business development. Investments in building and process design and significant capital commitments continued to be made to support the development of processing facilities for the A303 Stonehenge Tunnel Project. This significant project will come on stream in 2023-24.
At the end of the period under review, the Charity’s consolidated Reserves were £5.4m, a figure that reflects the reported deficit for 2022/23.
The activity levels of Wessex Archaeology Ventures Ltd and Trident Archaologie continued to grow and the Group also continued to receive invitations to tender for work around the world, including Europe, West Africa and Arabia. International opportunities are all considered against both our corporate strategy and our values, as we gradually continue to build an international network and work with archaeologists, stakeholders and suppliers around the World. Trident Archäologie has continued to expand its operations and conducted work in the Baltic Sea around Germany and Denmark and in the Atlantic off Portugal. Wessex Archaeology Ventures has also completed projects in Australia from the offshore wind sector.
As in the previous year, investment in major infrastructure and renewable energy projects continued to provide a large proportion of Wessex’s income, with the level of activity increasing significantly in the renewable sector.
Following changes resulting from COVID there has been a gradual return to office attendance and the company’s employees operate in a hybrid and flexible environment. Our Management Team, HR team, and the Prospect union collaborated to continue to provide wellbeing support and development to all staff. Wessex primarily concentrated on ensuring a solid base for the future. We continued to deliver innovative projects to the community and to our clients
1
**WESSEX ARCHAEOLOGY LIMITED**
**TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
through a combination of innovative technology, as well as by trusted and traditional methods to promote the heritage sector, for example (www.wellcitysalisbury.co.uk) is an excellent example of bringing heritage to the community which supports people with mental health needs.
Wessex Archaeology looks forward to FY 2023-2024 from a position of strength with a renewed appetite for delivering valuable services to benefit our clients and heritage in the widest sense.
2
**WESSEX ARCHAEOLOGY LIMITED**
**TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
The Trustees present their report and the audited financial statements for the year ended 31 March 2023.
The Trustees’ Report incorporates the Directors’ Report and Strategic Report required by company law. The sections Achievements and Performance, our Plans for the Future and Financial Review comprise the Strategic Report.
## **Objectives and Activities**
The objects for which the Charitable Company is established are to derive public benefit through:
- the advancement of education; and
- the advancement of the arts, culture, heritage and science.
Which the Charitable Company seeks to achieve by adhering to its core values of:
- Authenticity and Ethics
- Customer Focus
- Applied Knowledge
- Reliability and Resilience
- Communicating Passion
- Collaborative Behaviour
- Innovative Thinking
## **Mission**
To stimulate positive change in society both through the excellence of the services it supplies to its clients and the quality of the information it shares with its beneficiaries.
## **Vision**
Our vision is to create a universal appreciation of the value of cultural heritage. We want everyone to understand and appreciate the value of heritage for its social, economic and cultural benefits. By creating knowledge and understanding about the past, and by engaging a wide audience, we will help bring the past into the present, where its value can be understood and appreciated as cultural heritage. We want to highlight and articulate the contribution that cultural heritage can make to sustainability.
In working to achieve this, we recognise our dual responsibility to our clients and the public interest: Our offer to our clients is summarised as: “Complex problems creatively solved.” We investigate, record, interpret and communicate the value of cultural heritage found below ground, above ground, and underwater. Our team of specialists use innovative combinations of techniques to deliver sustainable solutions which create value for our clients, the historic environment, and the needs of communities.
The aim of our work within the wider community is: “Enriching lives through heritage.” We share the results of our work widely and with a diverse audience, using archaeology to educate the public in science, the arts, culture, and heritage. We leave a positive legacy of social cohesion and wellbeing within local communities, through sharing knowledge, developing skills and promoting sustainability.
## **Strategic Goals**
We have a three-pillared strategic framework to guide our work towards achieving our vision over the coming decade.
- Maximising Public Benefit: strengthening our ability to deliver meaningful public engagement.
- Developing Our People: ensuring our staff are happy, fulfilled and progress.
- Building a Sustainable Business: delivering high quality professional services that are a sustainable solution to managing heritage risk.
## **Public Benefit**
Cultural heritage contributes to a sense of place, to community identity and an enhanced appreciation of the environment in which we live. It is both tangible and intangible: contributing to social capital and making our communities more self-
3
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
reliant and dynamic. Our work delivers public benefit by enhancing social inclusion and cohesion, promoting cultural diversity and contributing to social, physical and economic regeneration.
We continue to invest in new ways to promote an appreciation of cultural heritage and to assist the public in deriving appreciable social value from historic environment resources. We focus on education, community, technology, inclusion and wellbeing and we work to prioritise underserved sections of society.
The beneficiaries of our work encompass a wide spectrum of communities and groups across the UK and beyond. In addition to the organisations or individuals who commission the work, beneficiaries include: fellow heritage professionals; individuals using publications and digital resources; local communities; special interest groups; teachers and students in all sectors of education; disadvantaged groups such as individuals who experience a higher risk of poverty, social exclusion, discrimination or violence than the general population, including, but not limited to, ethnic minorities, migrants, people with disabilities, isolated elderly people and children.
The Trustees confirm that they have had due regard to the Charity Commission guidance on public benefit.
## **Achievements and Performance**
## **Maximising Public Benefit**
||**Our 2022-23 ambition**|**Our achievements**|
|---|---|---|
|**EDUCATION**
Deliver our findings to the
public in engaging,
informative and
accessible formats, free of
charge.|
Experiment with new digital
dissemination platforms for
•
Digital Video
•
Research Outcomes|As the largest video platform, YouTube delivers video content
free of charge to a wide audience. 2022-23 saw a marked
increase in interest in our YouTube channel, achieving over
13.5k subscribers. The upload of the longform content
associated with the Amesbury Archer anniversary increased
our overall traffic.
During National Archaeology Week the Chesapeake,
Stonehenge and Avebury YouTube was encouraged by
subscribe buttons and others via social media channels.
Our engagement team provided free viewings of these videos
at events.|
|**COMMUNITY**
Deliver sector-leading
community engagement
activities to serve the
broadest and most
diverse audience possible
and leave a meaningful
legacy.
Become an established
social prescribing provider
in heritage services to
promote health, wellbeing
and social welfare for
underserved groups
Demonstrate verifiable
impact metrics for our
wellbeing services.|
Develop community links and
programmes with partners in
Sheffield. Social Prescribing -
deliver Year 2 Well City Salisbury
Project programmes, evaluate
their efficacy using a refined
evaluation model.
Deliver a heritage and climate
themed community project in
Salisbury for the Environment
Agency (Ripple Effect).
Commence delivery of the
Historic England funded Project
Rejuvenate pilot and develop
social value measures in
conjunction with partners|
Delivered Year 2 of Well City Salisbury. The partnership
delivered 8 courses, art club sessions and a placement
project to 139 participants with mental health needs and
expanded to include Art Club, Personal Projects and
Placements and a reflection session for artists. The
evaluation processes were reviewed and the Self-Identified
Aims Wheels was adopted by the Holburne Museum in
Bath. The project featured in the European Association of
Archaeologists conference 2023.
Funded by the Environment Agency we began delivery of The
Ripple Effect, an environmental and personal wellbeing
project working with artists and experts from Wessex
Archaeology and other organisations.
Funded by Historic England, Project Rejuvenate was
delivered in partnership with Wiltshire Wildlife Trust and St
Joseph’s Catholic School. The project used heritage,
archaeology and bushcraft skills to work with pupils to
improve wellbeing by taking them out of the classroom and|
|||
into the natural world. The project evaluation saw a significant|
|||
positive impact on pupil attendance as a result.|
4
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**TECHNOLOGY**
Increase our engagement
on media channels and
technical platforms.|
Expand and deepen engagement
on social media platforms.
Develop a collaborative platform
on which to consolidate the
output of not-for-profit
organisations.
Continue to develop and widen
our 3D capability to bring the
past to life, to support heritage
interpretation and meet learning
objectives.
Develop a wider range of digital
dissemination products to
engage both local communities
and a wider global audience.|
We funded a cross-sectoral programme of developmental
workshops to determine the level of interest for creating
consolidated video platforms.
We developed two new VR experiences. One based on wreck
survey data (Barracuda). This was initially developed as proof
of marine based content and later sold to a museum.
The second was based on the results of a medieval house
excavation, linked to the Salisbury site’s publication and has
been designed for Steam download.
We created a range of historically accurate repurposable
animals using our Universal Character Rigging System
We developed our social media offering to enhance
knowledge sharing and foster an appreciation for cultural
heritage.
We published new content on channels with more focus on
video content than inpreviousyears.|
|---|---|---|
|**INCLUSION**
Challenge inherent bias
and continue to target and
engage underserved
groups.|
Improve our use of the internal
Magnifying Public Benefit fund to
enable staff to deliver public
benefit heritage engagement
projects that have access and
inclusion at the core.
Extend our work with
underserved communities to
other cities and build
partnerships and opportunities
for heritage engagement.
Develop a pilot programme for
young people at risk of offending
in partnership with Historic
England and Isle Heritage CIC.
Leverage our Magnifying Public
Benefit Fund to support heritage
themed community initiatives
(Burntisland, Fife project).
Submit a Heritage Lottery Fund
bid for a prison project.|Five internal projects were funded: Burtisland, Bradbury
Rings, Project Rejuvenate Trial and a Heritage Feelgood
pack.
The Magnifying Public Benefit Fund supported two projects
during this period. We designed a project to use geophysical
and walkover surveys, recording and researching the
defences of Burntisland to develop the skillsets and
breakdown isolation of military veterans in central Scotland,
their friends and families.
We funded the production of a 360⁰ video of Bradbury Rings.
This video demonstrates how visualisation technologies can
provide access to prehistoric landscapes.
We submitted and won a Heritage Lottery Fund bid for the
Erlestoke Prison project to start in June 2023.|
5
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Developing Our People**
||**Our 2022-23 ambition**|**Our achievements**|
|---|---|---|
|Develop our Health
and Safety (OHS) and
Environmental
Management systems,
seeking and
maintaining
accreditations.|
Implement an OHS Management
system that continues to comply with
ISO 45001.
Emerge from the Coronavirus pandemic
with a supportive health and safety
culture where staff well-being continues
to be valued.
Ensure we meet the health and safety
expectations of clients on all sizes and
types ofprojects.|We achieved certification for ISO45001.
We grew the OHS team by recruiting a new member to sit
in the northern office.
We continue to follow good practice for staff that test
positive for COVID.
We continue to monitor and refine Risk Assessments for
all our operations.|
|Streamline our Human
Resources functions.|
Develop the capacity and capability of
the HR function to influence, steer, and
implement a people strategy which
aligns capabilities across the
organisation.|We programmed skills assessments and development
reviews for the fieldwork team in a systematic way.
We delivered a package of training for managing feedback
and having difficult conversations.
Processed 51 new job roles, attracted 946 applicants and
inducted 144 new starters.|
|Increase the wellbeing
of our staff.|
Continue to develop the implementation
of our Wellbeing Strategy. Deliver
Mental Health Awareness training to all
staff via our trained mental health first
aiders. Review our employee benefit
offering and establish opportunities for
improvement.|We increased mental health first aid training capacity
across the business and programmed mental health
training for managers to improve awareness.
We introduced a referral scheme with a therapy service.
We enhanced parental benefits for the organisation to
reduce the early financial challenges of parenthood and
encourage returners.|
|Extend our staff
development
capabilities by
progressing our
training and career
support functions.|Continue to progress our staff training
and development opportunities. Extend
our ILM accredited Leadership &
Management development programmes
for junior and middle managers.|We introduced the Workrite Environmental Training
Module which was completed by 378 staff.
The Developing People Strategy was published internally -
focussing on
•
Increasing Diversity
•
Promoting Development
•
Improving Line Management and Leadership
10 employees attained the ILM (Institute of Line
Management) level 3 – Team Leadership Apprenticeship
standard and a further 5 continue with the ILM L5
Operational Management Apprenticeship|
|Engage staff with our
values and define our
culture.|Undertake a periodic staff survey to gain
feedback, understand what really
matters to our people and inform our
plans for improvement. Improve
engagement through better internal
communications and collaboration.|
We surveyed new starters to test value and effectiveness
of the induction and onboarding offer by asking whether
the induction process delivers its promise of development,
values, wellbeing and engagement.
We recruited specialist internal communications resources
within the Communications team to help devise and
implement anew InternalCommunications Strategy.|
6
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Building a Sustainable Business**
||**Our 2022-23 ambition **|**What we achieved**|
|---|---|---|
|Implement our
Sustainability Strategy|Implement our sustainability
plan for the business by
establishing baseline metrics
and monitoring arrangements
and align all functions,
operational practice and
infrastructure with opportunities
to reduce energy use and
carbon emissions.
Implement an Environmental
Management System in
compliance with ISO14001
Consolidate our sustainability
offer for our clients by continuing
to engage with our customers
and supply chain to identify
further sustainability
improvements and where
possible share best practice.|We appointed a Sustainability Director to oversee our
sector-leading sustainability strategy.
Complied with ESOS3 (Energy Savings Opportunity
Scheme) which needs the Carbon Usage legal
compliance data.
We complied with PPN0621 (Public Procurement
Notice) which covers the measurement of Scopes 1 2
and 3 (partial) of Carbon Emissions
We are undertaking a GAP analysis on Environmental
Management System ISO 14001.
We partnered with the Supply Chain Sustainability
School to help our staff and our supply chain to provide
free resources in relation to all elements of
sustainability.
We implemented a flexible working policy so that staff
could work from home when able reducing our transport
and office emissions.
Introduced a Cycle to Work scheme and Electric Vehicle
Salary Sacrifice scheme to support staff members in
reducing carbon emissions in their commute or any
business travel.
We have moved most of our Electricity contracts to
renewable sources.
We have used HBO (Hydrogenised Biodegradeable Oil)
for some of our projects and utilised Solar Power welfare
units on site.|
|Develop our Procurement
Strategy|Develop procurement strategy
to improve our supply chain and
to provide our clients with
assurance that our procurement
is aligned with statutory as well
as client requirements.|We delivered a Responsible Procurement Policy and a
Sustainability Policy
Started to develop Supply Chain management process.|
|Continue to implement
our IT Development Plan
focussing on Security
Infrastructure and
storage, Integrated
Communications, digital
recording and knowledge
management|Obtain Cyber Essentials Plus
accreditation. Maintain and
improve our cyber security
including improvements to web
filtering and malware detection
systems.
Complete the implementation of
our data storage strategy.
Develop our use of web-based
collaboration and
communications tools.|We improved our cyber security and have chosen and
tested a web filtering solution.
We postponed obtaining Cyber essentials plus pending
the release of the additional filtering solutions to enable
assessment of comparable features and functionality.
We increased our storage capacity and enhanced
internal data management.|
|Develop an integrated
suite of
innovative archaeological
and heritage|Develop our customer facing
functions continue to strengthen
our project management and
contractual control functions to|Progress towards this objective is encouraging. A new
role of Chief Commercial Officer was introduced to
provide oversight and coordination of customer facing
sales functions. We continue with our client focus and
have strengthenedinternalcommunications around|
7
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|management services
that ensure that
we deliver a high-quality
solution|ensure greater organisational
resilience.
Work to improve our
management of our supply
chain and use collaborative
frameworks to strengthen
partnerships.|client needs to support sales. We have improved the
collation of data relating to performance and client
satisfaction to support, our client facing functions.
We have continued to monitor and improve contractual
control both on projects and within our supply chain.
Resilience has also been improved by investment in
wider sector partnerships that help to support resource
sharing|
|---|---|---|
|Continue to diversify
revenue streams into
related areas to
enhance our public
benefit capability.|We will seek funding to
experiment with the
development of digital
engagement and social
prescribing offers.|Funded by theArtsCouncilEnglandas part of a larger
project at The Potteries Museum and Art Gallery, the
Fragments Project was delivered to a group of local
seniors and explored their memories of the town and
their childhoods.|
|Increase our national and
international
reach, through
developing new and
existing partnerships,
refining our
international offering and
proactively
seeking global
opportunities.|Support the work of our
partnership arrangements by
engaging in marketing and
lobbying activity to promote the
broader understanding of good
cultural heritage management
practices.|The business activity associated with Trident WA GmbH
our German subsidiary continued to increase with
projects in Germany, Netherlands, Denmark and
Portugal as we continued to expand our client base and
develop new relationships with international bodies.
Outside the EU, Wessex Ventures was successful in
winning projects in Australia as well as working to
strengthen our track record of working with Extent
Heritage. Wessex Ventures also won our first project on
the Arabian peninsula and continued to work in Nigeria.
These projects were selected in accordance with our
values and strategic aims as well as being undertaken in
accordance with strong project controls in order to
manage the additional risks which arise from working
internationally.
All of our international work continues to work with local
suppliers and archaeologists where possible, in order to
develop local supply chains and to respect indigenous
views on the value and significance of heritage.|
8
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Our Plans for the Future**
|**Maximising Public Benefit**||
|---|---|
|**Our 2023-24 ambition**|**What we will do**|
|**EDUCATION**
Deliver our findings to the public in
engaging, informative and
accessible formats, free of charge.|Create an agile Audience Function to capitalise on opportunities to closely align
the Communications, Engagement, and Studio teams to use skills more flexibly
and link our audience offer to our core commercial work.|
|**COMMUNITY**
Deliver sector-leading community
engagement activities to serve the
broadest and most diverse
audience possible and leave a
meaningful legacy.|Deliver the final year of the Well-City Salisbury Project which enters its final year
of funding, and to further develop the project so we reach more people in the
community and raise awareness of the project across the UK.
Deliver Digging for Erlestoke, community dig in partnership with HMP Erlestoke
and learn from the project evaluation on this unique project.|
|**TECHNOLOGY**
Streamline our media channels and
enhance content on our technical
platforms.|Align our Audiences teams to collaborate more closely and share skills, improve
content planning and creation, enhance channel management and focus on
quality/ high-impact digital engagement.|
|**INCLUSION**
Challenge inherent bias and
continue to target and engage
underservedgroups.|Continue to work with and alongside underserved and underrepresented groups
in our local communities to deliver co-created heritage inclusion and wellbeing
projects.|
|**Developing Our People**||
|**Our 2023-24 ambition**|**What we will do**|
|Develop our Health, Safety, seeking
and maintaining accreditations.|Integrate our Health and Safety Management System with our Quality
Management System and align to Environmental Management System
elements.|
|Streamline our Human Resources
functions.|Improve data gathering and reporting in areas such as Turnover, Health,
Recruitment and otherpeople metrics to inform strategic need.|
|Increase the wellbeing of our staff.|Improve our Death in Service offering to provide additional benefits to all
employees including a Health Support Package giving access to healthcare
including mental health and wellbeing experts.
Reduce the Gender pay gap continuing the positive emerging trend increasing
the number of women in positions of responsibility within the business.|
|Extend staff development capability
by progressing our training and
career support functions.|We will look to recruit apprentices in the and explore further apprenticeship
opportunities to train and accredit staff internally.|
|Engage staff with our values and
define ourculture.|We will carry out an organisation wide culture survey to give further insights into
attitudes, behaviours andhelp to shape our focus ofcontinuousimprovement.|
|**Building a Sustainable Business**||
|**Our 2023-24 ambition**|**What we will do**|
|Continue to implement our
Sustainability Strategy|Continue to implement our sustainability plan by establishing baseline metrics,
monitoring arrangements and aligning operational practice and infrastructure
with opportunities to reduce energy use and carbon emissions and continue
implementation of an Environmental Management System in compliance with
ISO14001.|
|Develop our Procurement Strategy|We will continue to develop our procurement strategy to improve our supply
chain and to provide our clients with assurance that our procurement is aligned
with statutory as well as client requirements.|
|Continue to implement our IT
development plan.|We will continue to invest and expand our data storage strategy, web-based
collaborationand communications tools and our IT Infrastructure.|
|Improve our environmental, social
and economic performance.|We will seek ways to improve the performance of the business and enhance
measuring and recording the environmental, social and economic performance
ofthe Charity.|
|Increase our national and
international reach.|Develop new international partnerships and explore opportunities in new
territories whilst maintaining and developing our established network .|
9
**WESSEX ARCHAEOLOGY LIMITED**
**TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Financial Review**
Consolidated income for the year was £22.8m, an increase of 0.5% over the previous year. Expenditure grew by 13% which resulted in a net operating loss of £1.8m. The result for the year to March 2022 was an operating profit of £0.9m. The total funds of the Group at 31st March 2023 were £5.4m (2022 - £7.1m) of which £12k is restricted (Well City funding). The increased revenue reflected strong core demand.
The Charity continues to invest to improve efficiency, with significant expenditure on IT and Geosurvey technology. The Group spent £1.1m (2022 - £0.5m) on fixed assets during the year.
Overall expenditure on salaries and benefits increased by 18% to £14.2m (2022 - £12m) and this remains the largest single category of expenditure. Average headcount was 390 (2022 - 363).
The total employer’s Group Personal Pension Plan contribution for the year was £1.2m (2022 - £0.5m). The Charity has worked closely with Aviva to increase the visibility of Pension Information and online Pension Management to members. In Feb 2022 the company implemented a Salary Sacrifice scheme for pensions contributions.
## **Investment powers and restrictions**
The Charitable Company may invest monies not immediately required for its purposes in such investments, securities or property as it thinks fit, subject to charities and corporate law.
## **Reserves Policy**
The Risk and Audit Committee is established as a subcommittee of the Board and comprises four serving Trustees. The Committee meets four times per year with the Chief Executive invited as a guest.
Following a review by the Risk and Audit Committee in July 2022, the Trustees have approved the standing Reserves Policy as appropriate. Based on an assessment of cashflow demand, the cash contingency requirement was set at £1.25m and the minimum reserves were set at £4.5m. In determining the reserve level, consideration was given to the level of working capital required to satisfy the expected cash flow requirements of projects. If, at any point, the Charitable Company does not have retained earnings of £4.5 million the policy requires that this position be included on the Charitable Company’s Risk Register and addressed with an appropriate action plan.
Total Group assets in the Balance Sheet as at 31st March 2023 were £5.4m (2022 - £7.1m). Total assets include fixed assets of £2.3m (2022 - £1.7m) leaving available reserves of £3.1m (2022 - £6.5m).
Supporting strategies and activities designed to meet the Reserves Policy include marketing, productivity improvement, service development, overhead reduction initiatives and working capital optimisation. Responsibility for these is delegated to the executive. The policy is reviewed annually to balance delivery of the Charitable Company’s objectives and the need to maintain the resilience of the operation.
## **Risk Management**
Wessex Archaeology Limited has both a risk management policy and a risk management procedure in place. The Risk and Audit sub-committee, formed by the Board to guide its work, met quarterly during the year and reviewed current risk management procedures. This included updates to the Risk Management Policy and Procedure, a statement of Risk Appetite and a review of the Reserves Policy. The Executive Management Team is responsible for the execution of the Risk Management Procedure and the maintenance of the Risk Register for approval by the Board. It is supported in this work by the Resilience Team which comprises the Directors with accountability for HR, H&S and Quality.
The key areas of risk identified are as follows:
## **Governance Risks**
Organisational integrity and effectiveness may be impacted by:
- failure to respond to changes in legal or regulatory requirements;
- failure to be represented at Board level by relevant heritage expertise;
- failure to nominate interim postholders at executive level; and
- legal exposure arising from the management of complex commercial contracts.
Governance risks are mitigated through regular monitoring of the regulatory and operational environment and the performance of internal systems. This includes the use of external advisors and internal measures which bring potential
10
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
problems to the attention of the Trustees and the management team. Reduced Board expertise is mitigated by a proactive and informed recruitment strategy. Reduced executive level oversight is mitigated by responsive delegation of powers of authority and clear documentation of roles and responsibilities.
## **Operational Risks**
Operational effectiveness may be impacted by:
- a major incident / disruption to business continuity;
- failure to monitor organisational performance (finance and wellbeing);
- failure to report on major incidents (safety or environmental management) resulting in harm/reputational damage;
- - poor quality of service delivery;
- failure to monitor or mitigate contractual supply chain and procurement responsibility;
- failure to recruit and/or retaining suitable staff; and
- failure of IT systems (including security).
Operational risks are mitigated by the design and maintenance of management systems which direct and document decisions made by the management team, provide performance monitoring and include responsive procedures to minimise the impact of adverse events.
## **Financial Risks**
Projected financial performance may be impacted by:
- poor management of contractual terms;
- trading limited by cash flow / available credit;
- trading limited by external economic and market forces;
- failure to monitor and control income and expenditure; and
- bad debts and slow payment by significant trade debtors.
- adverse currency movements.
- poor investment performance.
Financial risks are mitigated through careful financial forward planning, the monitoring of budgets and hierarchical reporting mechanisms. The Finance team also has access to in house Quantity Surveyors as well as external financial advice and the support of legal and payment collection services.
## **External Risks**
The organisational business model may be impacted by:
- a deterioration in general economic conditions
- geopolitical instability;
- competitor growth or consolidation;
- changes in planning regulations and a continued decline in public spending;
- reduced funding of curatorial services;
- a reduced commitment to sustainability at international levels.
External Risks are mitigated by careful strategic planning and service development programmes which remain flexible and able to respond to market and regulatory change.
## **Compliance Risks**
The organisation's legal, contractual, professional, reputational or ethical standing may be impacted by behaviours or performance which fall short of regulatory/stakeholder expectations, such as:
- failure to comply with law, regulations or to meet professional responsibilities;
- failure to implement/follow professional standards;
- poor client relationship management;
- poor quality control; and
- business relationships with unethical or unprofessional organisations.
Compliance risks are mitigated by continuous efforts to maintain and project a strong organisational culture. Staff are required to demonstrate and communicate the company’s core values throughout their work and are empowered to challenge behaviours and potential outcomes which fall below our standards.
11
**WESSEX ARCHAEOLOGY LIMITED**
## **TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Principal Risks and Uncertainties**
These are events or circumstances which alone or in combination, pose a significant threat to the organisation’s charitable aims or its status as a going concern.
Economic Risk – in common with many businesses, the charity is exposed to changes in the wider economy. The economic changes resulting from the government’s COVID19 recovery plans, the war in Ukraine and the resulting energy crisis are yet to be fully ascertained. Inflationary impacts and staff / skills shortages are of particular concern. In mitigation the Trustees and the Executive continue to monitor economic developments closely and the Trustees have maintained their support for a series of business development and diversification strategies which seek to explore alternative income streams.
Client Failure – The global economic picture remains highly volatile, and failures of large-scale consulting and engineering firms continue to be a risk. The Trustees recognise that many potential client organisations may be directly or indirectly affected by such failures in the future. Impacts are controlled by close attention to the level of outstanding debt and the financial stability of all client organisations.
Risks to People – The organisation is dependent upon its people and turbulent times can place our team under increased personal and professional strains which can result in lowered performance, ill health, staff losses or recruitment difficulties. The Board of Trustees and the management team treat the health, safety, wellbeing and retention of our people as a priority, ensuring a safe, supportive and developmental environment.
Regulatory Risk – Current income streams depend upon environmental regulations and planning policy guidance. The loss of overarching legislation from the EU and the potential use of deregulation and policy change as an economic stimulant at national level pose threats to these income streams.
The Trustees and executive team maintain contacts within the heritage disciplines, across the wider environmental sector and within government. These provide insight into the potential for change and the organisation makes the most of any opportunity to influence the development of policy. Several diversification and business development strategies targeting new income streams are in progress.
## **Structure, Governance and Management**
Wessex Archaeology Limited is a registered charity and is incorporated as a company limited by guarantee and without share capital. The governing document is its updated Articles of Association, which were adopted by a special resolution on 20 March 2015. Members of the Charitable Company may vote at general meetings and their liability for its debts is limited to £10 each. At the date of this report there are currently eight members, and the maximum number is twenty.
The Charity has a trading subsidiary, Wessex Archaeology Ventures Limited which is the sole shareholder of Trident WA GmbH Germany. The Trading results of these subsidiaries have been incorporated within the Group financial statements. Wessex Archaeology Ventures Limited also agreed to close its US trading partnership, CEWA Inc. of Delaware, USA in July 2021
On appointment, all Directors of the Company also become Trustees of the Charitable Company. The procedure for appointment of the Directors and Trustees is described in the Charitable Company's Articles of Association. Trustees are appointed by the Board of Directors. New Trustees spend time at one of the Charitable Company's offices at the beginning of their appointment. Their induction day includes meetings with the Charitable Company's Chief Executive Officer and with the Chairman of Trustees. The induction process is designed to familiarise new Trustees with the work of the Charitable Company and its aims and objectives. Further training and awareness-raising is provided by the Trustees, Chief Executive Officer, and Principal Officers as appropriate.
The Trustees are responsible for the overall strategic direction and policy objectives of the Charitable Company. Day-today management is delegated to the Chief Executive Officer and the other Principal Officers.
The Charitable Company maintains partnership working relationships with a range of charitable and commercial enterprises in the archaeological sector and in related fields. The Trustees are satisfied that these relationships serve to further the charitable aims.
The Trustees have reviewed the events or actions which would adversely affect the Charitable Company's ability to achieve its stated charitable objects or its legal obligations. The Trustees have also implemented a risk management system based on Charity Commission guidance. They are satisfied that the major risks have been identified and that suitable measures are in place to monitor the possible occurrence of these risks and to avoid or, if necessary, to mitigate their effects.
12
**WESSEX ARCHAEOLOGY LIMITED**
**TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Pay policy for senior staff**
The Board of Trustees and the Executive Management Team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day-to-day basis. Except for the Chief Executive, who is remunerated, all Trustees give their time freely and no director received remuneration in the year. Details of remuneration of the Chief Executive, Trustees’ expenses and related party transactions are disclosed in notes 6 and 15 to the Financial Statements. The pay of the Executive Management Team and all staff is reviewed annually and is increased in line with a minimum level set by the Remuneration Committee. In view of the nature of the charity, the Trustees benchmark pay awards against pay levels in other charities.
## **Inclusive employment Policies**
Wessex Archaeology welcomes applications for employment from all prospective employees regardless of gender, race, belief or disability. We aim to actively promote equality of opportunity and maximise the abilities, skills and experience of all employees, to ensure that management practices are inclusive.
## **Employee information**
Wessex Archaeology places great importance on ensuring that employees are regularly updated and have appropriate opportunities to engage with senior management. A staff newsletter is circulated to all offices and by email and all staff are provided with an account on an internal social network. A Staff Forum meeting is convened on a quarterly basis which is attended by staff representatives, the Prospect Union and a member of the Executive Management Team.
## **Gender Pay information**
As an organisation of over 250 employees, Wessex Archaeology is required to monitor and publish Gender Pay Gap information. To comply with these regulations the Group;
- reports and publishes gender pay gap information annually,
- reports gender pay gap information to the government online, using the Gender Pay Gap Service and
- publishes gender pay gap information on its website at https://www.wessexarch.co.uk/gender-pay-reporting
Wessex Archaeology strives to maintain a workplace where people can engage in a fulfilling career and can thrive at work. To do this we make a consistent effort to attract as diverse a range of candidates as possible, create opportunities so that everyone can explore a career in a way that works for them and ensure that we have the right processes in place to make pay and progression fair for everyone.
Wessex Archaeology is committed to the development of our staff, by fostering a culture of inclusion, fairness and flexibility Wessex strives to maintain a workplace where people can engage in a fulfilling career and can thrive at work. We make a consistent effort to build a culture that ensures that all employees feel a sense of belonging and that everyone is valued for the differences they bring. Every level of our business is challenged to create opportunities so that everyone can explore a career in a way that works for them ensuring we have the right processes in place to make pay and progression fair for everyone.
## **Fundraising**
Wessex Archaeology does not actively fundraise from the general public, either directly or through the use of third-party fundraising providers. No complaints were received in respect of fundraising in either the current or previous financial year. The organisation does respond to funding calls from government and civil agencies. Such opportunities are subject to the same risk management and auditing criteria as the company’s commercial activities. The organisation does respond to funding calls from government and civil agencies. Such opportunities are subject to the same risk management and auditing criteria as the company’s commercial activities.
13
**WESSEX ARCHAEOLOGY LIMITED**
**TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Reference and administrative details**
## **Registered Company number**
01712772 (England and Wales)
**Registered Charity number** 287786
**Registered office** Portway House Old Sarum Park Salisbury Wiltshire SP4 6EB
## **Trustees**
Dr I C Selby (Chair) Mrs R K V Cook Mr C M Brayne (Resigned 31/7/2023) Mrs J N Johnson Mr C M Watson Dr R P Whimster Mrs S L U Voaden Mr P H Jamieson
## **Secretary**
Mr P A Sealey (Resigned 9/10/2023) Mr S D Smith (Appointed 27/10/2023)
## **Scottish Charity:**
Registered as part of Wessex Archaeology Limited
**Scottish Charity Register Number:** SC042630
## **Further offices:**
Pure offices Suite 68 Bannington Road 2 Anderson Place Edinburgh EH6 5NP Logix House, Wrotham Road, Meopham Kent DA13 0QB
Unit R6, Riverside Block, Sheaf Bank Business Park, Prospect Road, Sheffield S2 3EN Unit 9, City Business Park, Easton Road, Bristol BS5 0SP
## **Principal Officers:**
Mr P A Baggaley Chief Technology Officer Ms C Budd Chief Operating Officer Ms A H N Bryant Deputy Chief Operating Officer Mr S D Smith Chief Finance Officer
## **Bankers:**
Lloyds Bank PLC, 39 Threadneedle St, London EC2R 8AU
## **Auditors:**
Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG
## **Solicitors:**
Wilsons Solicitors LLP, Alexandra House, St Johns Street, Salisbury, SP1 2SB Beechmast Solicitors, Wellgarth, Rivar Road, Shalbourne, Marlborough SN8 3PU
14
**WESSEX ARCHAEOLOGY LIMITED**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Statement of the Board of Trustees responsibilities for the financial statements**
The Trustees, who are also directors of Wessex Archaeology Limited for the purposes of company law, are responsible for preparing the Trustees’ Report (incorporating the Strategic Report) and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year and not approve the financial statements unless they are satisfied that the financial statements give a true and fair view of the state of the affairs of the Charity and the Group as at the balance sheet date and of the incoming resources and application of resources, including income and expenditure, of the Charity and Group for the year then ended.
In preparing those financial statements which give a true and fair view, the Trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue on that basis
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The Trustees are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.
Each of the directors, who held office at the date of approval of this Trustees’ Report, has confirmed that there is no information of which they are aware which is relevant to the audit but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are made aware of such information.
## **Auditors**
Haysmacintyre LLP have expressed their willingness to continue in office as auditors. A resolution proposing that Haysmacintyre LLP be reappointed as auditors of the charitable company for the forthcoming year will be put to members at the Annual General Meeting.
and signed on their behalf by:
...................................... Dr I C Selby – Trustee
15
**WESSEX ARCHAEOLOGY LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF WESSEX ARCHAEOLOGY LIMITED**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Opinion**
We have audited the financial statements of Wessex Archaeology Limited for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charity Balance Sheets, Consolidated Cash Flow Statement, and notes to 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).
In our opinion, the financial statements:
- give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2023 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, 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 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
## **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 in accordance with the ethical requirements that are 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 relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’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 Executive Summary, Chair’s Report, and the Trustees’ 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report (which includes the strategic report and the directors’ 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 included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
16
**WESSEX ARCHAEOLOGY LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF WESSEX ARCHAEOLOGY LIMITED**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Matters on which we are required to report by exception**
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 misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ 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 for the financial statements**
As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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 error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, The Charities Act 2011, VAT, and payroll taxes.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in certain accounting estimates and judgements such as the income recognition policy applied to work in progress. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates, such as the recognition of work in progress.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
17
**WESSEX ARCHAEOLOGY LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF WESSEX ARCHAEOLOGY LIMITED**
## **FOR THE YEAR ENDED 31 MARCH 2023**
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **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, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 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.
**Richard Weaver**
For and on behalf of Haysmacintyre LLP Statutory Auditors Date: 5 December 2023
10 Queen Street Place London EC4R 1AG
18
**WESSEX ARCHAEOLOGY LIMITED**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023**
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|
|||**funds**|**funds**|**2023**|**2022**|
||**Notes**|**£**|**£**|**£**|**£**|
|**INCOME FROM:**||||||
|**Charitable activities**|3|||||
|Archaeological projects||22,707,883|91,600|22,799,483|22,690,461|
|||--------------------------|--------------------------|--------------------------|--------------------------|
|**Total income**||22,707,883|91,600|22,799,483|22,690,461|
|||--------------------------|--------------------------|--------------------------|--------------------------|
|**EXPENDITURE ON**||||||
|Charitable activities|4|24,467,442|96,015|24,563,457|21,793,490|
|||-------------------------|-------------------------|-------------------------|-------------------------|
|**Total expenditure**||24,467,442|96,015|24,563,457|21,793,490|
|||-------------------------|-------------------------|-------------------------|-------------------------|
|**NET INCOME/(EXPENDITURE)**||(1,759,559)|(4,415)|(1,763,974)|896,971|
|**RECONCILIATION OF FUNDS**||||||
|Total funds brought forward||7,115,137|16,514|7,131,651|6,218,166|
|||-------------------------|-------------------------|-------------------------|-------------------------|
|**TOTAL FUNDS CARRIED FORWARD**||5,355,578|12,099|5,367,677|7,115,137|
|||===========|===========|===========|===========|
The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. A charity only Statement of Financial Activities is included in note 18.
The notes on pages 22 to 35 form part of these financial statements.
19
**WESSEX ARCHAEOLOGY LIMITED**
**Company number: 01712772**
## **CONSOLIDATED AND CHARITY BALANCE SHEETS**
## **AT 31 MARCH 2023**
|||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|---|
|||**2023**|**2022**|**2023**|**2022**|
||**Notes**|**£**|**£**|**£**|**£**|
|**FIXED ASSETS**||||||
|Tangible assets|8|2,305,400|1,673,332|2,296,581|1,673,183|
|Investments||-|-|10|10|
|||----------------------|----------------------|------------------------|------------------------|
|**Total fixed assets**||2,305,400|1,673,332|2,296,591|1,673,193|
|**CURRENT ASSETS**||||||
|Debtors|9|6,173,261|6,344,781|6,435,382|6,659,717|
|Cash at bank and in hand||2,596,634|4,497,526|2,427,727|4,452,284|
|||----------------------|----------------------|----------------------|----------------------|
|**Total current assets**||8,769,895|10,842,307|8,863,109|11,112,001|
|**CREDITORS:**amounts falling due||||||
|within one year|10|(5,014,358)|(4,828,606)|(4,511,607)|(4,711,441)|
|||----------------------|----------------------|----------------------|----------------------|
|**NET CURRENT ASSETS**||3,755,537|6,013,701|4,351,502|6,400,560|
|**TOTAL ASSETS LESS CURRENT**||||||
|**LIABILITIES**||6,060,937|7,687,033|6,648,093|8,073,753|
|**CREDITORS:**amounts falling due after||||||
|one year|11|(193,127)|(174,851)|(193,127)|(174,851)|
|**PROVISIONS FOR LIABILITIES**|13|(500,133)|(397,045)|(500,133)|(397,045)|
|||----------------------|----------------------|----------------------|----------------------|
|**NET ASSETS**||5,367,677|7,115,137|5,954,833|7,501,857|
|||==========|==========|==========|==========|
|**FUNDS**|14|||||
|**Restricted funds**||||||
|Restricted funds||12,099|16,514|12,099|16,514|
|**Unrestricted funds:**||||||
|General fund||5,118,271|6,861,315|5,705,426|7,248,035|
|Revaluation reserve||237,308|237,308|237,308|237,308|
|||---------------------|---------------------|----------------------|----------------------|
|**TOTAL FUNDS**||5,367,677|7,115,137|5,954,833|7,501,857|
|||==========|==========|==========|==========|
and are signed on its behalf by:
............................................. Dr I C Selby -Trustee
The notes on pages 22 to 35 form part of these financial statements.
20
**WESSEX ARCHAEOLOGY LIMITED**
## **CASH FLOW STATEMENT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
||||**Total**|**Total**|
|---|---|---|---|---|
||||**2023**|**2022**|
|||**Note**|**£**|**£**|
|**Cash flows from operating activities:**|||||
|Cash generated from operations||A|(808,235)|819,498|
|Interest paid|||(7,991)|(11,791)|
|Interest element of hire purchase and finance lease rental payments|||(21,261)|(15,128)|
||||---------------------|---------------------|
|**Net cash provided by operating activities**|||(837,487)|792,579|
||||---------------------|---------------------|
|**Cash flows from investing activities:**|||||
|Purchase of tangible fixed assets|||(1,108,934)|(490,916)|
||||---------------------|---------------------|
|**Net cash provided by (used in) investing activities**|||(1,108,934)|(490,916)|
||||---------------------|---------------------|
|**Cash flows from financing activities:**|||||
|Assets purchased under finance leases|||300,714|279,273|
|Capital repayments in the year|||(255,185)|(180,188)|
||||---------------------|---------------------|
|Net cash provided by (used in) financing activities|||45,529|99,085|
||||---------------------|---------------------|
|**Change in cash and cash equivalents in the reporting period**|||(1,900,892)|400,748|
||||---------------------|---------------------|
|Cash and cash equivalents at the beginning of the reporting period|||4,497,526|4,096,778|
||||---------------------|---------------------|
|**Cash and cash equivalents at the end of the reporting period**|||2,596,634|4,497,528|
||||==========|==========|
|**A.**|**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING**||**ACTIVITIES**||
||||**Total**|**Total**|
||||**2023**|**2022**|
||||**£**|**£**|
||**Net income for the reporting period (as per Statement of Financial Activities)**||(1,763,974)|896,971|
||**Adjustments for:**||||
||Depreciation charges||468,886|391,871|
||Interest paid||7,991|11,791|
||Loss on disposal of fixed assets||7,980|-|
||Interest element of hire purchase and finance lease rental payments||21,261|15,128|
||Increase in provisions||103,088|57,869|
||(Increase)/decrease in debtors||188,034|442,944|
||Increase/(Decrease) in creditors||158,499|(997,076)|
||||----------------------|----------------------|
||**Net cash provided by (used in) operating** **activities**||(808,235)|819,498|
||||==========|==========|
The notes on pages 22 to 35 form part of these financial statements
21
**WESSEX ARCHAEOLOGY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. STATUTORY INFORMATION**
Wessex Archaeology Limited is a company limited by guarantee (company number 01712772), registered in England and Wales, without share capital. Wessex Archaeology Limited is also a charity registered with the Charity Commission in England and Wales and the Office of the Scottish Charity Regulator in Scotland. The guarantors are the trustees to the extent of £10 each. There were 8 trustees at the balance sheet date (2021 – 8 trustees). The company’s registered office address can be found in the Trustees’ Report.
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition, effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. The financial statements are presented in Sterling, which is also the functional currency of the company. The financial statements are rounded to the nearest Pound.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Basis of consolidation**
These financial statements consolidate the results of the Charity and its wholly-owned subsidiary, Wessex Archaeology Ventures Limited, on a line-by-line basis. Wessex Archaeology Ventures Limited has its own whollyowned subsidiary, Trident WA GmbH, a company registered in Germany, which is also included in these consolidated financial statements.
## **Income**
All income is included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.
Income from charitable activities includes amounts invoiced in the year, exclusive of Value Added Tax. In respect of long-term contracts, income represents the value of work done in the year, including estimates of amounts not invoiced and is recognised by reference to the stage of completion.
## **Long term contracts**
Where contracts are not complete at the end of the financial year provision is made for the anticipated value of income where the cost of work exceeds the actual value of income, provided that there is reasonable certainty that the anticipated value will be realised in the next accounting period. This is separately disclosed within debtors as "amounts recoverable on contracts". Any surplus of income over expenditure is not recognised unless there is reasonable certainty that the surplus will crystallise in a future period. This is separately disclosed within creditors as "payments on account on contracts". Full provision is made for losses on all contracts in the year which they are first foreseen.
## **Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably.
Expenditure on the provision of the charitable company's activities, which includes education and community engagement, may be either costs that can be allocated to specific archaeological projects or costs that cannot be allocated to specific projects, but which are incurred only for archaeological projects collectively.
Support costs enable the Charity to carry out its activities but do not themselves produce the output of these activities. They include items which are wholly identifiable as support costs and an apportionment of shared costs, which are allocated on the basis of the number of support staff.
Governance costs associated with the general running of the Charity as opposed to the direct management of the Company's operations are classed as governance costs and include direct and related support costs.
22
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES - continued**
## **Tangible fixed assets**
Assets are capitalised where the cost of an item exceeds £2,000 and the useful economic life of the asset is longer than the year of acquisition. Assets are disposed of in the accounts and removed from the fixed asset register when the useful economic life of the asset comes to an end and the net book value is nil. The charitable company operates a policy of revaluation on freehold land and property. Freehold land and property is included at current value at the balance sheet date.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, evenly over the useful economic life of that asset, as follows:
Leasehold buildings Calculated evenly over the remaining period of the lease Computer equipment 3 years straight line basis Archaeology Evaluation Equipment 3 years straight line basis Motor vehicles 4 years straight line basis All other assets 3-, 5- and 10-years straight line basis
## **Investments**
Investments in subsidiaries are valued at cost less impairment.
## **Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and highly liquid bank accounts. Cash held as part of an investment portfolio is included with the investment to which it relates.
## **Provisions**
Provisions are recognised when the charitable company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Where funds are received for specific purposes set out by the donor or implied by the terms of appeal, these are shown as restricted income in the Statement of Financial Activities. Expenditure for the purposes specified is applied against the income and any amount unexpended at the balance sheet date is shown within Restricted Funds.
General funds are Unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Deficit balances incurred on specific Restricted funds are funded from Unrestricted funds where no further Restricted fund income is expected to offset the expenditure incurred.
The Trustees, at their discretion, may set aside funds to cover specific future costs. Such funds are shown as designated funds within Unrestricted Funds. Where the trustees decide such funds are no longer required for the purposes intended, they may be released by transfer to general Unrestricted Funds.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
## **Pension scheme**
The charitable company operates a defined contribution pension scheme for all its employees. The assets of the Scheme are held separately from those of the charitable company. Pension costs charged in the Statement of Financial Activities represent the contributions payable by the charitable company in the year.
23
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES - continued**
## **Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements, taking into consideration the forecast income and expenditure streams and the continuing impact of the COVID-19 pandemic and Brexit on the Charity’s operations and finances. The Trustees consider the budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **Judgements and key sources of estimation uncertainty**
In the application of the charitable company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and the underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The most significant areas of judgement in preparing the financial statements are the anticipated value and costs in relation to incomplete long-term contracts and the estimate of costs for the future deposition of archaeological archives.
## **Hire purchase and leasing commitments**
Assets funded through finance leases are capitalised as fixed assets and depreciated on a straight-line basis over the shorter of their useful economic life and the lease term. Interest is charged to the Statement of Financial Activities on a straight-line basis. Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities as incurred.
## **3. INCOME FROM CHARITABLE ACTIVITIES**
Analysis of income by activity:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Coastal|484,801|684,981|
|Community|148,772|1,082,691|
|Fieldwork|16,533,777|16,100,498|
|GeoServices|3,129,544|2,434,453|
|Graphics|90,526|45,257|
|Heritage|863,687|1,023,456|
|Research|1,302,436|1,057,268|
|Other|156,340|262,277|
||-------------------------|-------------------------|
||22,707,883|22,690,461|
||===========|===========|
Income relating to Community engagement is allocated directly. Surpluses or deficits on projects are allocated directly to each activity. The remaining income is apportioned to each activity on the basis of total staff charge values for the year.
24
**WESSEX ARCHAEOLOGY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **4. CHARITABLE ACTIVITIES COSTS**
Provision of charitable activities:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Archaeological & Community projects|20,487,395|18,056,518|
|Support costs|3,854,993|3,574,838|
|Governance costs|125,054|162,134|
||--------------------------|--------------------------|
||24,467,442|21,793,490|
||============|============|
Governance costs include £26,190 (2022: £26,190) salaries (incl. pensions and employer’s national insurance).
Analysis of archaeological projects & education costs:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Salaries (incl. pensions and employer's national insurance)|10,991,549|9,031,341|
|Plant/Buildings hire and other site costs|3,342,617|3,240,784|
|Travel and vehicle hire|1,167,884|1,208,603|
|Staff accommodation|784,601|961,331|
|External specialists' fees|1,479,119|1,029,445|
|Direct facilities and services costs|1,527,922|1,212,603|
|Other project costs|787,967|1,033,475|
|Depreciation|405,736|339,094|
||---------------------------|---------------------------|
||20,487,395|18,056,518|
||=============|=============|
Included in direct facilities and services costs is an operating lease charge of £300,628 for land and buildings (2022 - £173,568). Included in travel and vehicle hire costs is an operating lease charge of £nil for other operating lease charges (2022 - £28,947). In addition, the Charity incurred other operating lease costs relating to software and IT assets of £20,954 (2022 - £111,146).
Analysis of support costs:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Salaries (incl. pensions and employer's national insurance)|3,151,342|2,825,705|
|Travel and subsistence|41,142|121,752|
|Telephone and IT related services|87,411|101,242|
|Print, postage and stationery|25,775|21,879|
|Professional fees and services|259,407|151,039|
|Insurance|13,575|11,009|
|Utilities and facilities costs|22,438|140,256|
|Other support costs|190.754|149,179|
|Depreciation|63,150|52,777|
||-----------------------|-----------------------|
||3,854,993|3,574,838|
||==========|==========|
25
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **4. CHARITABLE ACTIVITIES COSTS (continued)**
Analysis of direct charitable expenditure by activity:
|Year ended 31 March 2023|||||
|---|---|---|---|---|
||**Archaeological**||||
||**& Community**|**Support**|**Governance**||
||**Projects**|**costs**|**costs**|**Total**|
||**£**|**£**|**£**|**£**|
|Coastal|708,156|128,265|4,016|840,436|
|Community|319,613|86,318|0|405,931|
|Consultancy|1,014,327|183,720|5,752|1,203,800|
|Fieldwork|14,022,456|2,654,200|90,163|16,766,819|
|Geoservices|2,861,942|518,771|16,273|3,397,986|
|Graphics|68,251|12,362|387|81,000|
|Research|1,492,649|270,357|8,464|1,771,470|
||----------------------|--------------------------|----------------------|---------------------|
||20,487,395|3,854,993|125,054|24,467,442|
||==========|===========|===========|==========|
Analysis of direct charitable expenditure by activity:
Year ended 31 March 2022
||**Archaeological**||||
|---|---|---|---|---|
||**& Community**||||
||**Projects**|**Support**|**Governance**||
|||**costs**|**costs**|**Total**|
||**£**|**£**|**£**|**£**|
|Coastal|595,272|120,724|5,873|721,869|
|Community|1,194,796|242,311|-|1,437,107|
|Consultancy|736,523|149,371|7,267|893,161|
|Fieldwork|12,786,283|2,506,008|121,923|15,414,214|
|Geoservices|1,780,439|361,082|17,567|2,159,088|
|Graphics|180,328|36,571|1,779|218,678|
|Research|782,877|158,771|7,725|949,373|
||----------------------|--------------------------|----------------------|---------------------|
||18,056,518|3,574,838|162,134|21,614,701|
||==========|===========|===========|==========|
Costs relating to Community are allocated directly to the relevant activity. Other archaeological & community projects and support costs are apportioned to each activity on the basis of total staff charge values for the year.
## **5. NET INCOME/(EXPENDITURE)**
Net Income and Expenditure is arrived at after charging:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Depreciation|468,886|391,871|
|Operating leases - land and buildings|300,628|173,568|
|Operating leases - other|20,954|140,093|
|Auditors' remuneration - audit|24,700|20,200|
|Auditors' remuneration - other|7,775|4,740|
||==========|==========|
26
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **6. TRUSTEES' REMUNERATION AND BENEFITS**
Trustees' remuneration was paid in the normal course of duties, and for the period of trusteeship was as follows:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Salaries|88,648|88,648|
|Pension contributions|5,100|5,100|
|Benefit in Kind|6,834|5,899|
||---------------------|---------------------|
||100,582|99,647|
||==========|==========|
The above was all in relation to Mr C M Brayne for the current and previous year. Authority to pay trustees remuneration is provided by the Articles of Association of the charitable company. No trustees were reimbursed expenses in either year.
## **7. STAFF COSTS**
The aggregate payroll costs were:
|he aggregate payroll costs were:|||
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|Wages and salaries|11,731,666|10,372,105|
|Employer's national insurance|1,216,773|1,009,433|
|Pension contributions|1,175,746|578,212|
|Redundancy & Termination payments|44,994|16,737|
||--------------------------|--------------------------|
||14,169,179|11,976,487|
||===========|===========|
The average number of staff employed by the charitable company during the financial year amounted to:
||**2023**|**2022**|
|---|---|---|
|Archaeologists|301|286|
|Education/Outreach staff|11|4|
|Support staff|78|73|
||---------------------|---------------------|
||390|363|
||==========|==========|
The number of employees whose earnings for the year exceeded £60,000 are within the following bands:
|||**2023**||**2022**|
|---|---|---|---|---|
|||**No.**||**No.**|
|£60,000|- £69,999||3|1|
|£70,000|- £79,999||2|3|
|£90,000|- £99,999||1|1|
|||==========||==========|
The key management personnel of the charity during the year comprised the Non-Executive Trustees and the Senior Management Team (Chief Executive Officer, Chief Operating Officer, Chief Technical Officer, Chief Financial Officer, Director – Costal and Marine, Director - Geoservices and 9 senior managers covering Human Resources, Quality, Research, Compliance, Consultancy, IT and regional Fieldwork Regions). The total costs or consultancy fees where appropriate, comprising salary, compensation for loss of office, pension contributions and benefits in kind and associated national insurance costs of the 14 (2022 – 14) key management personnel of the charity were £931,279 (2022: £1,033,639).
27
**WESSEX ARCHAEOLOGY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**8.**|**TANGIBLE FIXED ASSETS**|||||||
|---|---|---|---|---|---|---|---|
||**GROUP**|||||**Office &**||
|||||**Archaeology**||**computer**||
|||**Freehold**|**Leasehold**|**Evaluation**|**Motor**|**equipment,**||
|||**property**|**improvements**|**Equipment**|**Vehicles**|**fixtures & fittings**|**Total**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
||**COST OR VALUATION**|||||||
||At 1 April 2022|750,000|86,754|914,608|32,175|1,376,375|3,159,912|
||Additions|-|533,397|166,739|41,646|367,152|1,108,934|
||Disposals||(5,779)|(69,923)|-|(48,916)|(124,618)|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**At 31 March 2023**|750,000|614,372|1,011,424|73,821|1,694,611|4,144,228|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**DEPRECIATION**|||||||
||At 1 April 2022|-|42,495|551,177|16,725|876,183|1,486,580|
||Charge for year|-|34,768|201,813|11,386|220,919|468,886|
||||(5,779)|(61,943)|-|(48,916)|(116,638)|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**At 31 March 2023**|-|71,484|691,047|28,111|1,048,186|1,838,828|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**NET BOOK VALUE**|||||||
||**At 31 March 2023**|750,000|542,888|320,377|45,710|646,425|2,305,400|
|||==========|==========|==========|==========|==========|==========|
||**At 31 March 2022**|750,000|44,259|363,431|15,450|500,192|1,673,332|
|||==========|==========|==========|==========|==========|==========|
28
**WESSEX ARCHAEOLOGY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**8.**|**TANGIBLE FIXED ASSETS (CONTINUED)**|||||||
|---|---|---|---|---|---|---|---|
||**CHARITY**|||||**Office &**||
|||||**Archaeology**||**computer**||
|||**Freehold**|**Leasehold**|**Evaluation**|**Motor**|**equipment,**||
|||**property**|**improvements**|**Equipment**|**Vehicles**|**fixtures & fittings**|**Total**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
||**COST OR VALUATION**|||||||
||At 1 April 2022|750,000|86,754|914,554|32,175|1,376,375|3,159,912|
||Additions|-|533,397|161,799|41,646|363,422|1,100,264|
||Disposals|-|(5,779)|(69,923)|-|(48,916)|(124,618)|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**At 31 March 2023**|750,000|614,372|1,006,430|73,821|1,690,786|4,135,409|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**DEPRECIATION**|||||||
||At 1 April 2022|-|42,495|551,177|16,725|876,183|1,486,580|
||Charge for year|-|28,989|139,870|11,386|172,003|352,248|
||Disposals|-|(5,779)|(61,943)|-|(48,916)|(116,638)|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**At 31 March 2023**|-|71,484|691,047|28,111|1,048,186|1,838,828|
|||---------------------|--------------------|---------------------|---------------------|--------------------|---------------------|
||**NET BOOK VALUE**|||||||
||**At 31 March 2023**|750,000|542,888|315,383|45,710|642,600|2,296,581|
|||==========|==========|==========|==========|==========|==========|
||**At 31 March 2022**|750,000|44,259|363,377|15,450|500,097|1,673,183|
|||==========|==========|==========|==========|==========|==========|
29
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **8. TANGIBLE FIXED ASSETS (continued)**
Included within the net book value of £2,296,581 is £ 360,146 (2022 - £338,970) relating to assets held under finance lease agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £ 181,084 (2022 - £131,014).
The charitable company had the freehold property valued on 9 November 2020 by Aitchison Raffety, Chartered Surveyors and Property Consultants. The value of the property at this date was £750,000. The Trustees consider this to be the most accurate valuation of the property at 31 March 2023 and are satisfied that there is no material difference between the valuation at 31 March 2023 and the valuation at 9 November 2020.
## **9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
The aggregate payroll costs were:
||**Group**||**Charity**|**Charity**|
|---|---|---|---|---|
||**2023**|**2022**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Trade debtors|4,382,302|3,578,880|4,189,117|3,560,851|
|Amounts recoverable on contracts|1,242,449|1,366,684|1,242,449|1,366,684|
|Amounts owed by subsidiary undertakings|-|-|455,463|333,116|
|Other debtors|339,976|1,229,659|339,819|1,229,508|
|Prepayments|208,534|169,558|208,534|169,558|
||----------------------|----------------------|------------------------|------------------------|
||6,173,261|6,344,781|6,435,382|6,659,717|
||==========|==========|===========|===========|
## **10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
||**Group**||**Charity**||
|---|---|---|---|---|
||**2023**|**2022**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Finance lease (see note 12)|232,363|205,110|232,363|205,110|
|Payments on account|2,874,244|2,592,911|2,408,895|2,592,911|
|Trade creditors|642,113|601,081|611,758|490,859|
|Social security and other taxes|940.353|900,864|951,507|898,319|
|Other creditors|225,372|429,676|224,027|430,881|
|Accruals and deferred income|99,913|98,962|83,057|93,359|
||---------------------|---------------------|---------------------
|---------------------|
||5,014,358|4,828,606|4,511,607|4,711,441|
||==========|==========|==========|==========|
30
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (GROUP AND CHARITY)**
|||**2023**|**2022**|
|---|---|---|---|
|||**£**|**£**|
||Finance lease (see note 12)|193,127|174,851|
|||=========|=========|
|**12.**|**LEASING AGREEMENTS (GROUP AND CHARITY)**|||
|||**Finance**|**leases**|
|||**2023**|**2022**|
|||**£**|**£**|
||Net obligations repayable:|||
||Within one year|232,363|205,110|
||Between one and five years|193,127|174,851|
|||------------------|------------------|
|||425,490|379,961|
|||=========|=========|
The tangible fixed assets held under finance lease agreements are provided as security for the obligations under finance lease agreements.
Minimum lease payments under non-cancellable operating leases fall due as follows:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Within one year|310,201|291,247|
|Between one and five years|727,944|840,779|
||-------------------|-------------------|
||1,038,145|1,132,026|
||=========|=========|
## **13. PROVISIONS FOR LIABILITIES (GROUP AND CHARITY)**
||**Bad debts**|**Publication**|**Deposition**|**Total**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
|At 1 April 2021|81,252|10,142|247,782|339,176|
|Arising and charged in the year|16,129||90,531|106,660|
|Utilised in the year|-|(10,142)|(38,649)|(48,791)|
||---------------------|---------------------|--------------------|---------------------|
|At 1 April 2022|97,381|0|299,664|397,045|
|Arising and charged in the year||-|||
|Utilised in the year|(24,155)||127,243|103,088|
||---------------------|---------------------|--------------------|---------------------|
|At 31 March 2023|73,226|-|426,907|500,133|
||==========|==========|==========|==========|
31
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **13. PROVISIONS FOR LIABILITIES (continued)**
## **Publication provision**
This provision relates to liabilities associated with publishing project reports in archaeological journals. These journals are produced periodically whenever there are sufficient articles to warrant publication.
## **Deposition provision**
The deposition provision relates to costs which will be incurred when project archives are deposited in the relevant museum. As many of these museums are currently at full capacity, it is not possible to give a certain date as to when this provision will be utilised.
## **14. MOVEMENT IN FUNDS**
With the exception of the revaluation reserve all of the unrestricted funds have been generated from surplus income on archaeological projects which have been carried out in the furtherance of the charitable company's objectives. These funds have been, and continue to be fully utilised in meeting the needs of the charitable company, as explained in the Trustees' report, without which its objectives could not be pursued.
The movement in general funds is analysed in the Statement of Financial Activities. There were no movements in the revaluation reserve during the year (2021: no movement).
## **Movement in restricted funds (group and charity)**
||**At 1 April**|||**At 31 March**|
|---|---|---|---|---|
||**2022**|**Income**|**Expenditure**|**2023**|
||**£**||**£**|**£**|
|Well City fund|16,514|76,650|88,284|4,880|
|Defensive Links: Burntisland's|-|14,950|7,731|7,219|
|Military Past Fund|||||
||----------------|-----------------|-----------------|----------------|
|**Total restricted funds**|16,514|91,600|96,015|12,099|
||----------------|-----------------|-----------------|----------------|
## **15. RELATED PARTY DISCLOSURES**
Dr R Whimster was a freelance editor for Historic England Limited in the previous financial year, however has had no formal ties with them in the year ended March 2023. The Charitable Company received £127,533 from, Historic England Limited during the year (2022: £173,266). Wessex Archaeology Limited received services from Historic England totalling £1,381 (2022 - £2,352)
Mrs R K V Cook is a shareholder and director of Beechmast Consultancy Limited. Beechmast Consultancy Limited provided legal services to the charitable company and its subsidiary Wessex Archaeology Ventures Ltd, where she is also a Director, to the value of £110,305 (2022 - £16,993).
Mr C M Brayne is the Vice Chair / Director of FAME (Federation of Archaeological Managers and Employees) and the charitable company pays an annual subscription of £1,195 (2022 - £1,140).
Mr C M Brayne is also a Commissioner for Royal Commission on the Ancient and Historic Monuments of Wales (RCAHMW). The charitable company sold services to RCAHMW to the value of £5,741 (2022 - £nil).
Mrs S L U Voaden is a director of Vhroom Limited and the Charitable Company received services totalling £nil (2022 - £6,772) from the company.
There were no further related party transactions in the current or previous year.
## **16. ULTIMATE CONTROLLING PARTY**
The charitable company has no ultimate controlling party.
32
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **17. SUBSIDIARY UNDERTAKINGS**
Wessex Archaeology Limited owns 100% of the share capital of Wessex Archaeology Ventures Limited.
A summary of Wessex Archaeology Ventures Limited’s financial performance is shown below. Full audited accounts are available publicly available at Companies House.
## **Profit and loss account**
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Turnover|835,305|8,709|
|Expenditure|(891,500)|(49,007)|
||---------------------|---------------------|
|Operating loss|(56,195)|(40,298)|
|Interest receivable|15,059|5,232|
|Interest payable|(16,319)|(7,457)|
||---------------------|---------------------|
|Loss for the year|(57,455)|(42,523)|
||==========|==========|
|Total capital and reserves|(129,271)|(71,816)|
|**Balance sheet**|||
|Investments|22,389|22,389|
|Current assets|749,449|332,088|
|Current liabilities|901,109|426,293|
|Net liabilities|(129,271)|(71,816)|
|Called up share capital|10|10|
|Profit and loss account|(129,271)|(71,816)|
|Loss for the year|(57,455)|(42,523)|
||---------------------|---------------------|
|Total capital and reserves|(129,281)|(71,826)|
||==========|==========|
33
**WESSEX ARCHAEOLOGY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
Wessex Archaeology Ventures Limited owns 100% of the share capital of Trident WA GmbH, a company limited by shares and registered in Germany. A summary of Trident WA GmbH’s financial performance is shown below:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Turnover|739,448|197,595|
|Expenditure|(864,400)|(337,703)|
||---------------------|---------------------|
|Operating loss|(124,952)|(140,108)|
|Interest payable|(14,246)|(5,022)|
||---------------------|---------------------|
|Loss for the year|(137,198)|(145,130)|
||==========|==========|
Total capital and reserves at the year-end are £(430,536) (2022: £(293,338))
34
**WESSEX ARCHAEOLOGY LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **18. CHARITY-ONLY STATEMENT OF FINANCIAL ACTIVITIES**
||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**funds**|**funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|**INCOME FROM:**|||||
|**Charitable activities**|||||
|Archaeological projects|21,749,913|91,600|21,841,513|22,521,688|
||--------------------------|--------------------------|--------------------------|--------------------------|
|**Total income**|21,749,913|91,600|21,841,513|22,521,688|
||--------------------------|--------------------------|--------------------------|--------------------------|
|**EXPENDITURE ON**|||||
|Charitable activities|23,292,519|96,015|23,388,534|21,363,785|
||-------------------------|-------------------------|-------------------------|-------------------------|
|**Total expenditure**|23,292,519|96,015|23,388,534|21,363,785|
||-------------------------|-------------------------|-------------------------|-------------------------|
|**NET INCOME/(EXPENDITURE)**|(1,542,606)|(4,416)|(1,547,021)|1,089,236|
|**RECONCILIATION OF FUNDS**|||||
|Total funds brought forward|7,485,341|16,514|7,501,855|6,412,621|
||-------------------------|-------------------------|-------------------------|-------------------------|
|**TOTAL FUNDS CARRIED FORWARD**|5,942,735|12,099|5,954,834|7,501,857|
||===========|===========|===========|===========|
35