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2021-12-31-accounts

Trustees’ Report and Financial Statements

for year ended 31 December 2021

Spadework Ltd. • A company limited by guarantee Registered Charity No. 291198 • Registered Company No. 01820460

Spadework Social Enterprises CIC • A Community Interest Company Registered Company No. 13099464

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Reference and administrative details of the charity, its trustees, and advisers

Contents

Registered Office

Teston Road, Offham, West Malling, Kent, ME19 5NA

Chairman

Susan Murray

Treasurer

Anthony Young

Company Secretary Anthony Young

Patrons

Tom Tugendhat MP Stephen Betts George Harvey

Chief Executive Officer

Kris Healey

Date first appointed

Trustees of Charity Peter Reeves 20/05/2004 Trevor Brazier 23/11/2009 Anthony Young 26/07/2011 Susan Murray 27/09/2011 Edward Hosey 27/11/2013 James Burke 27/11/2013 Reverend James Brown 20/06/2018 Mary Rimmer 19/12/2018 Hayley Brooks 01/04/2021 Nadra Ahmed OBE 01/04/2021

Date first appointed

Directors of Spadework Social Enterprises CIC Kris Healey 24/12/2020 Susan Murray 01/05/2021 Anthony Young 01/05/2021 Gill Levett 01/05/2021

Independent Auditor

Kreston Reeves LLP, Montague Place, Quayside, Chatham Maritime, Kent, ME4 4QU

Bankers

NatWest, 718 London Road, Larkfield, Kent, ME20 6AN

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– Spadework 2021 Key moments in our year

January to March

➜ Vegetable Patch extension

April to May

➜ Trainee Pods built

➜ Amphitheatre created

➜ Access to bore hole water

June

➜ Trainees back on site

➜ Continued remote support for non-returners

July to September

➜ Launch of wellbeing service, Time to Grow

➜ Performing Arts sessions begin

➜ First Spadework play performance

➜ First Spadio podcast

➜ Launch of dementia services

➜ Care Team shortlisted for award

October to December

➜ Pumpkin Festival

➜ Café extension begins

➜ House Plant Hut opens

➜ Food Shack opens

➜ Christmas Tree sales

January to December

➜ Café closed

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Chairman’s Introduction

When writing my report for 2020, naively. I never thought in 2021, we would still be in the continuing grip of the Covid pandemic.

This annual report reviews how we have managed to sustain the charity throughout this second year of Covid-related restrictions. Sometimes it seems that the last two years have condensed into one and at others time seems to have stood still.

Early 2021 saw trustees interviewing candidates for trusteeship of the charity and directors for the newly formed social enterprises trading arm. We were delighted to appoint Nadra Ahmed OBE and Hayley Brooks as trustees of the charity and Gill Levett as a director of Spadework Social Enterprises CIC.

‘Our thoughts turned towards other sections of society that our site and practices might benefit, such as those living with early-onset dementia and those experiencing problems with their mental health.’

Sue Murray, Chairman of the trustees

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Our Trainees started returning to Spadework in June under the careful guidance of our staff to ensure that all were kept as safe as possible. “Bubbles” of Trainees and staff were formed to prevent mixing and all buildings on the site were utilised to accommodate these groups. Members of the public accessing the site for the farm shop and garden centre were kept separate from our Trainees.

Our financial surplus for 2020 was such that for the first-time trustees were able to set aside three months’ worth of staff salaries. This achievement came with a sting in its tail as many funders declared on seeing our accounts that we had too much money in reserves and declined our request for funding. So much for being prudent!

During the year our thoughts turned towards other sections of society that our site and practices might benefit, such as those living with early-onset dementia and those experiencing problems with their mental health. The initiative began with “Time to Grow”, gentle gardening sessions on site on

Friday mornings. This was followed by our Memory Café, which brings together everyone living with dementia for a cuppa and a chat on the first Monday afternoon of the month. These initiatives are in their early stages but are well supported. We will look to expand them while keeping in mind our main function, which is to provide excellent day care for our Trainees.

It has been a bumpy year, but we have made progress with the site. We took further advantage of restricted access to it to enable the café to be extended. While that work was being carried out, the Food Shack was built and opened in time for Christmas tree sales, with hot drinks, snacks, ice creams and sugary delights on offer, as well as outdoor seating.

As ever, I would like to express my appreciation to all who contribute to Spadework’s continuing success, including volunteers, staff, funders and those who shop with us and buy raffle tickets. We could not do without you and your generosity of spirit.

Thank you.

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Objectives and activities

Spadework is an independent charity based in West Kent and provides meaningful opportunities for vulnerable adults from both Kent and Medway.

Our mission is to enable people to be more independent, less isolated and to lead happier, healthier and more fulfilling lives.

Policies and objectives

Spadework provides care, support and meaningful opportunities for adults with learning and other disabilities (known to us as our Trainees) in arts, crafts, catering, gardening, health, hobbies, horticulture, hospitality, information technology, life skills, performing arts, radio podcasts, retail management, wellbeing and woodwork.

Spadework provides a range of different experiences and activities to enable our Trainees to develop the skills needed to allow

them to reach their full potential. As well as providing meaningful opportunities for our Trainees, Spadework provides a number of different services across our site.

We provide three wellbeing services for adults experiencing problems with their mental health (called Time to Grow, Woodwork for Wellbeing and Time Together) and three dementia services for adults living with dementia (a Memory Café, a Peer Support Group and a Carers’ Support Group).

Public benefit

The charity’s objective of enabling people to be more independent, is of benefit not only to our Trainees but also to their families, support networks, carers, local authorities and the wider community.

We are fortunate to have many energetic, resourceful and inspirational staff members and volunteers, who share our passion and commitment to realising our vision.

At the heart of a rural community, Spadework offers local people a unique place to meet

friends, recharge their batteries and enjoy the interaction with our beneficiaries. Our safe and stimulating site enables vulnerable adults to feel accepted for who they are, gain new skills and access new opportunities. We provide an oasis for our local community, providing a positive and uplifting space to help bring everyone together, be it someone faced with bereavement, a life-changing health diagnosis, an ageing parent, a family celebration, a club meeting or social event. The interactions that occur on our five-acre site are often emotional, meaningful and heartening.

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Our purpose

We passionately believe that adults with learning and other disabilities should not be held back from enjoying a full life because of other people’s perceptions about what they can and cannot do.

At Spadework people are supported to:

Most Trainees attend Spadework two days a week. Some come every weekday.

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What we do

Our Trainees come on site each weekday and are involved in everything that we do. When the charity was founded in 1984, the Trainees were solely involved in horticultural activities, hence our name. Over the years we have expanded the range of activities they can choose. They now include creative activities like performing arts, our own podcast “Spadio”, painting, hobbies, crafts and woodwork.

Our Trainees also learn life skills, such as learning how to cook a healthy meal or how to make a bed, skills that enable them to lead more independent lives. Our Trainees make jams and chutneys for sale in the farm shop and label apple juice that is served in the café and sold in the farm shop.

We learned a lot from the Covid pandemic. As a result, we have made positive changes to the services that we provide. For example, we changed the way we work. The Trainees now work in a small group for six weeks, so they can see a project though from start to finish. Our care team can look at trends, to see how the interests of our Trainees change. We can grow our service to meet their needs and provide more person-centred care.

“I like to continue working on something we started the week before.”

Trainee K

The activities fall broadly into three categories:

Horticulture

Creative arts, and performing arts, and woodwork

Skills for life

The average length of service is 9.5 years. The longest serving Trainee has been with us for 33 years.

41 % of Trainees are aged 26-35. We welcome adults of all ages.

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we sold more than 10,000

Horticulture

Horticulture remains at the heart of the skills that the Trainees learn and use on site. For example, they grow pumpkins from seed, plant the pumpkin plants and tend and water them until they are sold during our Pick Your Own Pumpkin festival. Since we started growing pumpkins in 2017, we have learned a lot about the therapeutic value of pumpkins and learned more about the 33 varieties we grew in 2021.

café and seasonal vegetables that are sold in the farm shop.

Our Trainees use their gardening skills to keep our site looking inspirational for visitors. The courtyard garden has become a showcase for many of the plants sold in the garden centre and a welcoming space for everyone who visits Spadework.

Our Trainees also tend to our vegetable gardens, growing herbs that are used in the

In 2021, with our Trainees back on site after lockdown, we renewed our focus on

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“I like different types of pumpkins – we grow them from seeds that we keep and sell to customers. I loved that… It makes me happy to see food grown from seed to pumpkin and then go to the customer.”

Trainee H

horticultural activities that are of benefit to the environment. With the help of corporate volunteers, we began to rejuvenate our wildlife garden. Under the guidance of our Horticulture and Ecology Manager we have experimented with growing plants together and in rotation that have a positive impact on the soil (companion planting) and have

looked at ways to recycle and re-use materials to reduce our waste. We have also been fortunate to be given access by a local landowner and Spadework patron, Stephen Betts, to the water in his borehole. Keeping our five-acre site watered is quite a challenge for all of us. The use of bore water has also saved us a substantial amount of money.

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podcast at spadio.org.uk

Creative arts, and performing arts, and woodwork

Our Trainees let their creativity shine through, whether pursuing a hobby, making arts and crafts or making wooden items in woodwork.

The skills learned in woodwork can be applied practically on site. For example, our Trainees have recently renovated the furniture for our café. They have also made bird boxes, place mats and decorations for sale in the garden centre.

We are passionate about ensuring every Trainee has a voice that is heard. When our Trainees returned on site after lockdown in

June 2021, we introduced new creative activities. Our staff work with a charity called Square Pegs Arts to deliver quality performing arts sessions. Each week we explore with our Trainees different aspects of theatre, music, and performing arts. We have had much positive feedback from our Trainees and heard plenty of laughter through the sessions.

In September 2021 our Trainees performed the first play they had written. This was followed by a Christmas play, which was enjoyed by all the Trainees who took part and by those who watched.

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Our unique podcast, which we call “Spadio”, is an opportunity for our Trainees to tell their story. In the fourth episode, for example, one of our Trainees, J, talks about his family life, sharing the story of how he nearly died at birth and how he developed a love of running. In another episode Trainee P talks about his love of films. The podcast enables people outside of Spadework to get a real understanding for who our Trainees are. The first “Spadio” podcast went live in September 2021.

We have seen positive changes to our Trainees’ confidence and engagement. It is also a great service user-generated way of promoting what we do at Spadework.

These sessions build on the skills that our Trainees developed during lockdown. When

we provided remote support via telephone and video, many of our Trainees began to develop their own voice. Now we have new services that can build on these skills.

It is all part of the evolution of Spadework as we respond to the changing needs of our Trainees.

“I enjoy coming to Spadework because it gives me the chance to learn new skills I haven’t learned before. I also like trying my hand at new stuff, being adventurous and moving with the times.”

Trainee S

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Skills for life

Our skills for life activities have become some of the most popular activities for our Trainees. Some of these activities are new for 2021 and were introduced in response to the Covid pandemic and our increased understanding of the situations of the Trainees outside of Spadework.

We were fortunate to receive funding from The National Lottery Community Fund which enabled us, among other infrastructure changes, to re-purpose the Trainee Common Room into two separate rooms – orange and purple – which have become the hub of the skills for life activities.

In our fully equipped orange kitchen and purple classroom, our Trainees learn how to cook food, including fruit and vegetables grown in our vegetable garden, and to make healthy food choices. Throughout the sixweek cycle of these sessions our Trainees make menu choices. One of the weeks, which is arguably the most popular with the Trainees, is the Mystery Week. Faced with a real-life choice to have a look in the fridge, freezer and cupboards, the Trainees prepare a meal cooking with what they find.

We are grateful for the partnership we have with FareShare Kent, the regional arm of the

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“In Life skills we learn cooking and food preparation. I can now cook for my girlfriend in my supported living accommodation … I plan my menus and get food out of the freezer the night before.”

Trainee S

UK’s national network of charitable food redistributors, for providing us with trays of food for use in the orange kitchen. This enables us to provide every Trainee with the food to cook.

Our Trainees have also learned how to make a bed and other household skills, how to manage money and what safe relationships look like.

Before the pandemic our Trainees were involved in customer-facing activities in the

farm shop, café and garden centre. Now they are using those skills in other ways and learning new life skills. When it is safe for the Trainees to mix again with the public, their retail, catering and hospitality skills will be applied in our Social Enterprises. The Trainee Council (Trainees who are elected by the Trainees to represent their views and shape how Spadework operates) has reported that while some Trainees miss interacting with the community, at present they are really appreciating the new activities while still making a huge contribution to their charity.

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Our impact

Self esteem

Trainees are made aware of their own strengths, are involved in activities that enable them to be proud of themselves and through contributing to the community have a greater sense of purpose.

Aware of strengths Sense of pride Sense of purpose 83% 96% 88% of Trainees are aware of of Trainees feel proud of of Trainees enjoy their strengths. themselves. contributing to their community.

“I like painting furniture for the café and picnic benches.”

Trainee L

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Independence

Trainees are encouraged to try new activities, such as preparing lunch for themselves and others, to make their own decisions and communicate with others. This enables our Trainees to be more independent.

Learn new things

Make life decisions

More confident

93%

72%

88%

of Trainees have learned new things at Spadework.

of Trainees say they make decisions that affect their lives.

of Trainees are more confident because of coming to Spadework.

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Our impact

Trainee wellbeing

Trainee wellbeing is at the heart of all our activities. Our Trainees form friendships, some of which are long-lasting outside of Spadework. Trainees are encouraged to talk to staff so that they are less isolated. Many activities at Spadework enable our Trainees to be physically active.

New friends The future Physical activity 96% 87% 65% of Trainees say they have of Trainees say they feel of Trainees are more made new friends at good about the future. physically active because Spadework. of coming to Spadework.

“He is finding more confidence to ask questions and express how he feels.” Parent/carer

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Communication and participation

Our staff encourage the Trainees to develop their communication skills and contribute to the evolution of the charity through channels like the Trainee Council. The Trainee Council is elected by the Trainees to represent the entire Trainee cohort.

Trainee-led decisions have included the format of the day and which activities take place in which rooms, times we break for lunch and the introduction of a sports day.

Promoting greater communication, confidence and autonomy are essential in protecting vulnerable adults. A carer in a focus group observed that Trainees, “speak up more about what’s concerning them”.

Communication

66%

of Trainees have better communication skills.

“We learned how to talk to people nicely. When people come to Spadework, they are nicer, they show respect. There’s no pushing; they say, ‘Excuse me’.”

Trainee P

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Freddie’s* story

From initially needing one-to-one support to developing more confidence and being able to attend Spadework without a personal assistant, Freddie’s story is an inspirational one.

Freddie started coming to Spadework when he was 19 years old after leaving the autism unit at school. Freddie’s parents wanted him to develop new life skills, build a routine and have structure to his day, so were delighted to have found Spadework.

Initially, Freddie’s personal assistant (PA) came to Spadework with him in a taxi. As his confidence increased over the years, it was agreed with his parents that Freddie could try taking the taxi on his own and meeting his PA at Spadework. Although his parents were initially worried about this new arrangement, Freddie took to his increased independence straight away, gaining more confidence and skills.

“Freddie enjoys the horticultural activities and even plants beans at home now.”

Our care team observed Freddie’s confidence increasing further over the next few years, so we suggested that Freddie could try coming to Spadework without his PA. Although initially hesitant, Freddie’s parents agreed and he has been thriving since, as noted by Freddie’s father:

“He’s more likely to ask for things and talk to people. Whereas before Freddie was standing in the shadow of his PA, who did most things for him, he is now standing taller, smiling and can do so much more for himself. He’s got a

*name has been changed

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Our care team ensure that every Trainee has a voice that is heard and provide high quality person-centred care that evolves with our Trainees.

voice and feels comfortable sharing his sense of humour with people.”

Before coming to Spadework, Freddie’s parents cared for him around the clock; they described 24/7 care as “hugely draining”. Now, later in life, they can take some time to look after their own wellbeing – going for a swim or to the gym and gardening, knowing that Freddie is well cared for and enjoying his time at Spadework.

“Without Spadework, Freddie’s future would have been bleak. Spadework really helps people with special needs to grow and learn new skills so that they can live a meaningful and fulfilling life.”

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New services at Spadework

Following a successful building and facilities re-configuration programme, in 2021 we introduced new services to support our wider community.

We were particularly aware that during the Covid-19 pandemic Spadework had a mutually beneficial relationship with our wider community. Through providing services like food boxes and ensuring the farm shop stayed open during lockdown, Spadework became a support for many people within the community. Equally, we received much support from local people who volunteered their time with us, or who continued to shop in the farm shop once normal service was resumed at their regular store. We became acutely aware of the impact the pandemic had on the lifestyles and wellbeing of local

people. We wanted to give something back to the people who had so kindly helped us.

So, our new services gradually came to life.

We now offer three wellbeing services to those people experiencing problems with their mental health, Time to Grow is what we call our community gardening project. We also have Woodwork for Wellbeing and these both paved the way in 2022 for the introduction of our Time Together project, encouraging individuals to visit our café and chat to new people.

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We became acutely aware of the impact the pandemic had on the lifestyles and wellbeing of local people. We wanted to give something back to the people who had so kindly helped us.

We also became aware that many people were experiencing symptoms of dementia but were unable to get a diagnosis. Coming to terms with these changes in the life of a loved one is difficult for everyone. We therefore launched three Spadework dementia services: a Memory Café, a Carers’ Support Group and a Peer Support Group.

We are proud that we have used our safe and beautiful space to introduce services to support the wider local community. These services have been launched using the resources that we have on site and with very little financial support. It is our intention as we generate more income to extend these services to benefit more people.

Wellbeing services

Dementia services

l Time to Grow

l Woodwork for Wellbeing

l Memory Café

l Carers’ Support Group

l Peer Support Group

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Wellbeing services

We appointed one of our staff members as our mental health lead. Her responsibilities include expanding our new community wellbeing services as well as ensuring staff are supported in their wellbeing.

With one in four adults experiencing problems with their mental health (source: NHS England), we are making our site and services available to these vulnerable members of our community.

As a result of the expansion of our services, Spadework is now a hub for many diverse groups of people. We can see new connections and friendships being made on our safe, beautiful fi ve-acre site.

“I really enjoy coming here. I would be so disappointed if I couldn’t come.” E. a regular attendee at Time to Grow

Time to Grow

Woodwork for Wellbein g

l A three-hour session where people come together in a peaceful outdoor environment to garden, to chat and to make friends

l A three-hour session for people who would like to learn a new skill, chat and make friends

l Sessions run at weekends

l Sessions run twice a week

Impact

Impact

100%

of people said they felt a lot happier as a result of attending

The taster sessions have led to regular sessions being rolled out once a week in 2022.

77%

reported improved physical health

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Dementia services

Led by our Dementia Services Co-ordinator from September 2021, we hosted a series of Memory Cafés, Carers’ Support Groups and Peer Support Groups for people who have recently received a dementia diagnosis or may be pre-diagnosis.

houses a sensory experience that creates a world seen through the eyes and ears of a person living with dementia. This is part of our mission to educate and inform our local community about living with dementia.

These services are currently being extended to include an Activity and Music Therapy Group.

We are also hosting information events to give local people the opportunity to fi nd out not only about our services, but also about other dementia services in the local area. To help people understand how people living with dementia see the world, we will also be temporarily hosting on our site a bus which

Impact

These services began in September 2021 and we have already received positive feedback from people.

“Take care and thank you for all you are doing with the activities you are arranging at Spadework. I hear from our Carers who attend how grateful they are to have places to take their loved ones and with the effects of Covid over the past two years this is proving to be very refreshing and so worthwhile. My thanks to you.”

Staff member at local hospice

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Spadework Social Enterprises CIC

We have always tried to be as financially independent as possible.

Through our trading subsidiary, Spadework Social Enterprises CIC, we have a garden centre, café and farm shop that are open to the public seven days a week.

The pandemic put us firmly on the map, as our Farm Shop became a go-to place for many people who could not get an online delivery or were unable to go out when the supermarkets

re-opened. We worked hard to retain that support as life returned to normal. We are delighted that many people who discovered us then have continued to support us.

The income from these social enterprises supports the work of the charity and supports the local Kent economy.

In 2021, Spadework Social Enterprises CIC generated £641,540.

Garden Centre

99%

of our bedding plants are sourced from Kent, Essex, and Sussex.

Café 65%

of our ingredients in the café are from Kent.

Farm Shop

75% of the products sold are from Kent-based producers.

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Impact on local community

The activities at Spadework have an impact on local people who both work and volunteer with us.

Employees

51 staff members live in Kent. 1,072 hours of employment each week.

Volunteers 32 local people volunteer their time. 8,112 hours of volunteering support.

Our income

Awards

Spadework’s fundraising activities are led by our Head of Fundraising. Income generation is headed up by our Social Enterprise Department Managers.

----- Start of picture text -----
Restricted grants
and donations
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----- Start of picture text -----
Fundraising
Unrestricted events
grants and
donations 3%
5%
7%
Commercial
CJRS 11%
activities
46%
Contract income
28%
Coronavirus
Job Retention
Scheme
----- End of picture text -----

Our Care team were shortlisted as Care Team of the Year in the 2021 Kent Care Awards. These awards celebrate the work of care staff and the care sector and are the regional part of the national Great British Care Awards. The purpose of the awards is to pay tribute to those individuals who have demonstrated outstanding excellence within their field of work.

We were delighted when Spadework’s Ashleigh Smith was named Apprentice of the Year at the Kent Care Awards and went through to the national finals as Newcomer of the Year.

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The future

We are proud with how Spadework has evolved, particularly through the challenges we faced because of the Covid-19 pandemic and its continuing effects. We will:

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Thank you

One of the things that makes Spadework unique is its close relationship with our local community. It is a simple model for a charity where every interaction between the Trainees and our local community enriches the lives of everyone that is involved.

----- Start of picture text -----
A very big
Spadework,
“Thank you.”
----- End of picture text -----

We would like to thank the following organisations, among others, for their support:

Community

Rotary Kings Hill, Rotary West Malling, Lions Club Malling, Corpus Christi Social Club Tonbridge, Malling Abbey Lodge, The Malling Society, Parkinson’s UK, St. Mary the Virgin, West Malling, St. Michael and All Angels Offham.

Grants, Trusts, and Foundations

The National Lottery Foundation, Kent Community Fund and Tesco Community Grants. Many that have chosen to remain anonymous.

Businesses

Brachers LLP, Parkfoot Garage, Mortgages for Business, Keystone Property Finance, Rolex, St James’s Place Wealth Management, The Swan.

And every individual who has made a donation or shopped with us. As a small charity every penny makes a difference.

FinanciaL Statement WA 30

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Financial Review

Structure, governance and management

a. Reserve policy

Our objective is to achieve a position where the income from local authority grants and from the supporting activities meet the full operational costs of the charity, allowing all donations to be used for new capital projects and to allow for the creation of a reserve fund. Over the last few years our dependence on donations to cover operational shortfalls has been reducing. We would ideally like to build a reserves buffer of around £150,000 to enable the charity to continue operating whilst we achieve this goal.

a. Company status

Spadework Ltd is a charitable company limited by guarantee with no share capital. The company was incorporated on 30 May 1984 and is governed by its Memorandum and Articles of Association.

b. Governance and internal control

The Board of Trustees is responsible for selecting and recruiting suitably skilled Trustees. One third of the Trustees retire from office at each Annual General Meeting. A retiring trustee is eligible for re-election, and there is no limit on the number of times a trustee may be re-elected.

c. Risk management

The Trustees have assessed the major risks to which the charity is exposed and, in particular, those related to the operations and finances of the charity. They are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The additional amount of general funds are deemed appropriate to be holding given the need to ensure there is access to unrestricted liquid funds in a time of uncertainty due to COVID-19.

The Trustees have developed a formal risk management process to assess business risks and implement risk management strategies. This involves reviewing the risks the charity faces, prioritising them in

FinanciaL Statement 32 $podeWC

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terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks in line with a risk profile accepted by the board.

The most significant risk facing the charity is a reduction in our funding. A reduction in income would impact on the charity’s ability to continue to operate. In terms of mitigating the risk, we strive to ensure that the income derived from our Day Opportunity Services and other supporting activities are maximised and that we are working towards identifying new funding streams.

Basis for preparation of accounts

The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Statement of Trustees’ responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not a ancial statements unless pprove the fin they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

FinanciaL Statement 34

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Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure tha ancial statements t the fin comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregulaarities.

Auditor

The auditor, Kreston Reeves LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

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

Sue Murray, Chairman

Date: 06/09/2022

Spadework Limited (A company limited by guarantee)

Independent auditor's report to the Members of Spadework Limited

Opinion

We have audited the financial statements of Spadework Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

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Spadework Limited (A company limited by guarantee)

Independent auditor's report to the Members of Spadework Limited (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 37

Spadework Limited (A company limited by guarantee)

Independent auditor's report to the Members of Spadework Limited (continued)

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:

Capability of the audit in detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

Based on our understanding of the group and charitable sector generally, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, antibribery and employment law. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. 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 to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

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.

Page 38

Spadework Limited (A company limited by guarantee)

Independent auditor's report to the Members of Spadework Limited (continued)

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

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 39

Spadework Limited

(A company limited by guarantee)

Independent auditor's report to the Members of Spadework Limited (continued)

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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

S M Robinson BA FCA FCIE DChA MCMI (Senior statutory auditor)

for and on behalf of Kreston Reeves LLP

Chartered Accountants Statutory Auditor

Chatham Maritime Date: 07/09/2022

Page 40

Spadework Limited

(A company limited by guarantee)

Consolidated Statement of financial activities (incorporating income and expenditure account) For the year ended 31 December 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net (expenditure)/income
Transfers between funds
17
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
282,421
1,191,986
54,534
13
1,528,954
23,201
1,515,412
1,538,613
(9,659)
21,742
12,083
1,036,688
12,083
1,048,771		 Restricted
funds
2021
£
86,602
-
-
-
86,602
-
89,580
89,580
(2,978)
(21,742)
(24,720)
54,980
(24,720)
30,260		 Total
funds
2021
£
369,023
1,191,986
54,534
13
1,615,556
23,201
1,604,992
1,628,193
(12,637)
-
(12,637)
1,091,668
(12,637)
1,079,031		 Total
funds
2020
£
854,089
1,500,242
30,485
25
2,384,841
10,047
1,769,758
1,779,805
605,036
-
605,036
486,632
605,036
1,091,668

Page 41

Spadework Umlted IA ¢ompany Ilm110d by guaranta•l Regi•t•rod n￿nb￿. 1820460 Consolldated balance 8heet AS at 31 Decèmljer 2021 20 2020 Flx•d assot8 Tangible assets 11 980,054 781,673 980,054 781,673 Current a•••ts 13 14 130.878 96.275 163.864 2,172 Debtors Cash at bank aNI in hand 83N55 299.799 556.311 CrèditoTS'. wnounts folling du? wrthin one 15 1120,9341 {161.238> N•t current •wts 178,866 395,073 Total a88•ts le￿ cmnl Ilabllftl 1,158.919 1,176,746 Creditors.. amounts falling due after morn than one 16 (79,8881 {85.0781 T(rtal Mt a•••l• 1,079,031 1.091,668 Charlty fvnd• Re8tricted funds Unre8trkted fvnds 17 17 30,260 1.048,771 54.960 1,036,688 Total lund8 1,079,031 1,091,668 The Trustees ackn¢)wledge IF￿1r responsibSlities for W￿pI￿ng ¥Ath th• requir•mgnts of the Act with re5pecl to aCc(￿ntIng record5 and pr8paration of fjnanci81 stmert¥. The finanGial statements have bo•n prepared in acc￿? the provwdiong aFpl￿#bI8 to ènt6tiaÈ sublecl to the $m811 companies regThe. The financLql statemerrts approv&1 and authorisaj for issue by the TNste88 aThJ Signed ￿ their tehaw by.. Susan Murray sure The nc498 on pages 45 to 61 fomi part of the8e fin￿la1 statements. P•3e 42

8pthork Llmlt•d (A c(xnpany Ilmlted by guarnnte•l Ro9lBtar•d number: 1820460 Charlty balance Sheet A8 at 31 Decemb•r 2021 2020 Not• Flx8d ass•ts Tangible assets Investments 11 12 980.054 781,673 980,055 781,873 Cuvrgnl as8ets Stocks Debters Cash al bank and in h8rwJ 13 14 96.275 163,864 2￿,172 85.466 83A66 556.311 Credrtors.. ￿OUnt3 tslling due ¥￿thin one 15 1162,1211 1161,238) Nvt curront aM•ts 40,742 395,073 Totsl Ismts leu ¢urr•nt Ilabllltl 1,020,797 1.176.746 Creilrtor¥.' arn￿rrtS laillrs due after mcK• th￿ one yew 16 179,888) (85,078) Net •xcludlng p•n•l¢)n •$••t Totsl n•t a•••ts 1,091.668 1,091,668 Charfty fund• Restricted funds Unre8tricted fvnds 17 17 54,980 1,036,688 910.649 Total funds 940,909 1.091,668 Th• Trustees acnowbdge thew responstsilities for c(#nptytr¥a vth tho rnw11en￿nts of the Act wth respect to accounting rttords and Pf8paralion offi'nancial staterr￿ts. The ffinancial $lalernents h8ve been pr8parèd in actcwdm with th¢ provis￿n5 lo entitle6 6ubject to the small ccrfnpanies re9nne. The fin ial statements apprO￿d aNf aultK)ri8ed for issue by the Trustees and Signed on thèir behaff by. ony Treas Susan Murray _T_I oal The notes on paJes 45 10 61 fom) port d these financial staieffnts. Page43

Spadework Limited

(A company limited by guarantee)

Consolidated statement of cash flows For the year ended 31 December 2021

Note
Cash flows from operating activities
Net cash used in operating activities
20
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21
The notes on pages 45 to 61 form part of these financial statements		 2021
£
57,997
(265,524)
(265,524)
(5,190)
(5,190)
(212,717)
296,172
83,455		 2020
£
738,292
(628,135)
(628,135)
(85)
(85)
110,072
186,100
296,172

Page 44

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

1. General information

Spadework Limited is a company limited by guarantee in the United Kingdom. In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charitable Company. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charitable Company's operations and principal activities are set out on page 2.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Spadework Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

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

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

Page 45

Spadework Limited

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

2. Accounting policies (continued)

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

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

2.4 Interest receivable

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

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold land - Not depreciated
Site improvements - 5% straight line
Buildings - 5% straight line
Motor vehicles - 25% reducing balance
Fixtures and fittings - Various rates depending on the estimated
useful life of the asset
Assets under construction - Not depreciated until completion

2.6 Investments

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

2.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.8 Debtors

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

Page 46

Spadework Limited

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

2. Accounting policies (continued)

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

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

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

2.11 Financial instruments

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

2.12 Operating leases

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

2.13 Pensions

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

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

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

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

Page 47

Spadework Limited

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

3. Income from donations and legacies

Donations
Government grants
Total 2020		 Unrestricted
funds
2021
£
104,477
177,944
282,421
579,904		 Restricted
funds
2021
£
86,602
-
86,602
274,185		 Total
funds
2021
£
191,079
177,944
369,023
854,089		 Total
funds
2020
£
600,038
254,051
854,089

Goverment grants include furlough income of £177,944 (2020: £249,012) received through the government's furlough scheme during the COVID-19 pandemic.

Page 48

Spadework Limited

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

4. Income from charitable activities

Charitable activities
Total 2020
.
Charitable activities		 Unrestricted
funds
2021
£
1,191,986
1,500,242		 Total
funds
2021
£
1,191,986
1,500,242		 Total
funds
2020
£
1,500,242
Horticulture / Nursery
Catering
Farm shop
Logs
Other activities
Sponsorship - Kent County Council
Sponsorship - Medway Council
Sponsorship - Private
Total 2020		 Unrestricted
funds
2021
£
380,167
2,925
258,448
97,431
5,160
243,194
40,132
164,529
1,191,986
1,500,242		 Total
funds
2021
£
380,167
2,925
258,448
97,431
5,160
243,194
40,132
164,529
1,191,986
1,500,242		 Total
funds
2020
£
512,538
35,067
353,219
54,125
32,733
242,449
78,026
192,085
1,500,242

5. Fundraising income Income from fundraising events

Pumpkin event
Total 2020		 Unrestricted
funds
2021
£
54,534
30,485		 Total
funds
2021
£
54,534
30,485		 Total
funds
2020
£
30,485

Page 49

Spadework Limited

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

6. Investment income

Bank interest
Total 2020
Costs on raising funds
Fundraising events
Total 2020		 Unrestricted
funds
2021
£
13
25
Unrestricted
funds
2021
£
23,201
10,047		 Total
funds
2021
£
13
25
Total
funds
2021
£
23,201
10,047		 Total
funds
2020
£
25
Total
funds
2020
£
5,636

7. Costs on raising funds

8. Analysis of expenditure on charitable activities

Summary by fund type

Charitable activities
Total 2020		 Unrestricted
funds
2021
£
1,515,412
1,565,754		 Restricted
funds
2021
£
89,580
204,004		 Total
funds
2021
£
1,604,992
1,769,758		 Total
funds
2020
£
1,769,758

Page 50

Spadework Limited

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

. Charitable activities

Other staff costs
Vehicle costs
Office costs
Professional costs
Site costs
Bank interest
Stock purchases
Loss on disposal of fixed assets
Auditors' remuneration
Wages and salaries
National insurance
Pension costs
Depreciation
Bad debts
Total 2020
Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Unrestricted
funds
2021
£
5,406
9,261
141,931
29,259
69,321
5,286
435,985
-
8,450
689,858
48,078
15,523
57,054
-
1,515,412
1,565,754
Group
2021
£
705,858
48,078
15,523
769,459		 Restricted
funds
2021
£
-
-
-
-
63,491
-
-
-
-
16,000
-
-
10,089
-
89,580
204,004
Group
2020
£
705,999
44,851
15,144
765,994		 Total
funds
2021
£
5,406
9,261
141,931
29,259
132,812
5,286
435,985
-
8,450
705,858
48,078
15,523
67,143
-
1,604,992
1,769,758
Charity
2021
£
705,858
48,078
15,523
769,459		 Total
funds
2020
£
7,848
4,746
138,023
19,108
221,901
5,186
535,293
22,585
4,950
705,999
44,851
15,144
39,085
5,039
1,769,758
Charity
2020
£
705,999
44,851
15,144
765,994

9. Staff costs

Page 51

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

9. Staff costs (continued)

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

Support Workers
Administrator
Managers
Weekend Staff		 Group
2021
No.
18
4
9
12
43		 Group
2020
No.
25
5
8
10
48		 Charity
2021
No.
12
2
6
-
20		 Charity
2020
No.
25
5
8
10
48

The average headcount expressed as full-time equivalents was:

Support Workers
Administrators
Managers
Weekend Staff		 Group
2021
No.
15
2
9
6
32		 Group
2020
No.
20
3
7
7
37		 Charity
2021
No.
10
1
6
-
17		 Charity
2020
No.
20
3
7
7
37

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

Group Group
2021 2020
No. No.
In the band £70,001 - £80,000 - 1
In the band £90,001 - £100,000 1 -

During the year the charity's key management personnel received employee benefits (as defined by Charities SORP FRS 102) of £302,270 (2020: £183,689), including employer's national insurance contributions of £28,410 (2020: £17,325) and employer's pension contributions of £6,275 (2020: £4,138).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL).

Page 52

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

11. Tangible fixed assets

Group and Charity

Cost or valuation
At 1 January 2021
Additions
Transfers between classes
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Freehold
property
£
932,824
141,687
251,836
1,326,347
518,600
37,801
556,401
769,946
414,224		 Motor
vehicles
£
44,412
-
-
44,412
17,869
6,636
24,505
19,907
26,543		 Fixtures and
fittings
£
84,953
31,730
-
116,683
32,236
22,706
54,942
61,741
52,717		 Assets
under
construction
£
288,189
92,107
(251,836)
128,460
-
-
-
128,460
288,189		 Total
£
1,350,378
265,524
-
1,615,902
568,705
67,143
635,848
980,054
781,673

12. Fixed asset investments

Charity
Cost or valuation
Additions
At 31 December 2021
Net book value
At 31 December 2021		 Investments
in
subsidiary
companies
£
1
1
1

Page 53

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

13. Stocks

Closing stock
14.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Group
2021
£
130,878
Group
2021
£
45,419
2,538
37,509
85,466		 Group
2020
£
96,275
Group
2020
£
83,409
15,168
65,287
163,864		 Charity
2021
£
33,942
Charity
2021
£
45,419
2,538
37,509
85,466		 Charity
2020
£
96,275
Charity
2020
£
83,409
15,168
65,287
163,864

Page 54

Spadework Limited

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

15. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
9,908
84,054
-
16,817
3,055
7,100
120,934		 Group
2020
£
9,908
122,306
-
20,617
3,130
5,277
161,238		 Charity
2021
£
9,908
31,391
93,850
16,817
3,055
7,100
162,121		 Charity
2020
£
9,908
122,306
-
20,617
3,130
5,277
161,238

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

Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Bank loans 79,888 85,078 79,888 85,078

Included within the above are amounts falling due as follows:

Between two and five years
Bank loans
Over five years
Bank loans		 41,905
37,983		 41,905
43,173		 41,905
37,983		 41,905
43,173

Included in creditors is a loan from Natwest Bank, payable over 10 years, from 24 November 2018, at a fixed rate of 5.74% pa over the Bank's base rate. During the fixed rate period monthly instalments of £873 will be payable, with the balance of the loan being due as a final instalment.

Page 55

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

17. Statement of funds

Statement of funds - current year

Designated funds
Fixed Asset Fund
General funds
General Fund
Total Unrestricted funds
Restricted funds
Buildings Fund
National Lottery
Other Restricted Funds
Total of funds		 Balance at 1
January
2021
£
760,202
276,486
1,036,688
21,471
10,000
23,509
54,980
1,091,668		 Income
£
-
1,528,954
1,528,954
-
40,252
46,350
86,602
1,615,556		 Expenditure
£
-
(1,538,613)
(1,538,613)
(10,089)
(26,671)
(52,820)
(89,580)
(1,628,193)		 Transfers
in/out
£
208,470
(186,728)
21,742
-
(14,177)
(7,565)
(21,742)
-		 Balance at
31
December
2021
£
968,672
80,099
1,048,771
11,382
9,404
9,474
30,260
1,079,031

Page 56

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

17. Statement of funds (continued)

Statement of funds - prior year

Designated funds
Fixed Asset Fund
General funds
General Fund
Total Unrestricted funds
Restricted funds
Buildings Fund
National Lottery
Other Restricted Funds
Global Make Some Noise
Total of funds		 Balance at
1 January
2020
£
183,797
200,787
384,584
31,773
-
21,723
48,552
102,048
486,632		 Income
£
-
2,110,656
2,110,656
-
130,776
88,409
55,000
274,185
2,384,841		 Expenditure
£
-
(1,575,801)
(1,575,801)
(10,302)
(46,184)
(67,314)
(80,204)
(204,004)
(1,779,805)		 Transfers
in/out
£
576,405
(459,156)
117,249
-
(74,592)
(19,309)
(23,348)
(117,249)
-		 Balance at
31
December
2020
£
760,202
276,486
1,036,688
21,471
10,000
23,509
-
54,980
1,091,668

Page 57

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

The designated Fixed Asset Fund represents the net book value of the charity's fixed assets, excluding the value of the restricted Buildings Fund.

The restricted Buildings Fund accounts for 'lottery' grants from the Community Fund, expended on buildings and equipment. In accordance with the terms of those grant, there are restrictions on use of those assets which can apply for anything up to 80 years. Accordingly, transfers are made so that the balance on this fund is equal to the net book value of the buildings and equipment to which such restrictions apply.

The restricted Global Make Some Noise Fund accounts for a grants awarded to perform repairs and construction work to the Charity's premises.

The restricted National Lottery Fund relates to grants received from the National Lottery for various works to make improvements to the Charity's premises.

Other restricted funds relate to immaterial grants and donations received from various organisations or individuals for specific projects.

Transfers out of restricted funds during the year relate to the purchase of capital assets, in accordance with the terms of the restricted grant, and have been transfered to the Charity's designated fixed asset fund as the terms of the restriction have now lapsed.

18. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
January
2021
£
760,202
276,486
54,980
1,091,668
Balance at
1 January
2020
£
183,797
200,787
102,048
486,632		 Income
£
-
1,528,954
86,602
1,615,556
Income
£
-
2,110,656
274,185
2,384,841		 Expenditure
£
-
(1,538,613)
(89,580)
(1,628,193)
Expenditure
£
-
(1,575,801)
(204,004)
(1,779,805)		 Transfers
in/out
£
208,470
(186,728)
(21,742)
-
Transfers
in/out
£
576,405
(459,156)
(117,249)
-		 Balance at
31
December
2021
£
968,672
80,099
30,260
1,079,031
Balance at
31
December
2020
£
760,202
276,486
54,980
Summary of funds - prior year
Designated funds
General funds
Restricted funds
1,091,668

Page 58

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total
20.
Reconciliation of net movement in funds to net cash flow
Net income/expenditure for the year (as per Statement
Activities)
Adjustments for:
Depreciation charges
Loss on the disposal of fixed assets
Increase in stocks
Decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities		 Unrestricted
funds
2021
Restricted
funds
2021
£
£
968,672
11,382
517,591
18,878
(357,604)
-
(79,888)
-
1,048,771
30,260
Unrestricted
funds
2020
Restricted
funds
2020
£
£
760,202
21,471
522,802
33,509
(161,238)
-
(85,078)
-
1,036,688
54,980
from operating activities
Group
2021
£
of Financial
(12,637)
67,143
-
(34,603)
78,398
(40,304)
57,997		 Total
funds
2021
£
980,054
536,469
(357,604)
(79,888)
1,079,031
Total
funds
2020
£
781,673
556,311
(161,238)
(85,078)
1,091,668
Group
2020
£
605,036
39,085
22,947
(28,081)
46,383
52,922
738,292

Page 59

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

21. Analysis of cash and cash equivalents

Group Group
2021 2020
£ £
Cash in hand 83,455 296,172

22. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
January
2021
£
296,172
(9,908)
(85,078)
201,186		 Cash flows
£
(212,717)
-
5,190
(207,527)		 At 31
December
2021
£
83,455
(9,908)
(79,888)
(6,341)

23. Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £15,523 (2020: £15,144). Contributions totalling £3,055 (2020: £3,130) were payable to the fund at the balance sheet date and are included in creditors.

24. Operating lease commitments

At 31 December 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
180
540
720		 Group
2020
£
389
600
989		 Charity
2021
£
180
540
720		 Charity
2020
£
389
600
989

25. Related party transactions

During the year Brachers, a related party of Mary Rimmer, whom is a Trustee, due to her role with the company, made purchases of £190 (2020: £815) from Spadework and made a donation of £10,000 (2020: £Nil) to Spadework.

Page 60

Spadework Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2021

26. Controlling party

There is no overall controlling party.

27. Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Registered office Registered office Principal activity Principal activity Class of Holding Included in
number or principal place shares consolidation
of business
Spadework Social 13099464 Spadework Nursery, To provide Ordinary 100% Yes
Enterprises CIC Teston Road, commercial
Offham, support to the
West Malling, Charity and
Kent, learning
ME19 5NA opportunities for
the trainees
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
Spadework Social Enterprises CIC 641,540 (662,940) (21,400) (21,399)

The financial results of the subsidiary for the year were:

Page 61

Spadework, Teston Road, Offham, Kent. ME19 5NA Tel. 01732 870002 • Website: Spadework.org.uk

@spadework.offham spadework.offham @spadeworkoffham

Thanks to Stephanie Peat for design and Singlewell Print for printing this report.