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2020-12-31-accounts

Company registration number: 01865175 Charity registration number: 293063

J.L.O. (1984) Limited

(A company limited by guarantee)

Annual Report and Financial Statements

For the Year Ended 31 December 2020

J.L.O. (1984) Limited

Annual Report and Financial Statements Contents

Page
Reference and Administrative Details 1
Trustees' Report 2 - 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 - 14

J.L.O. (1984) Limited Reference and Administrative Details

Charity name J.L.O. (1984) Limited
Chairty registration number 293063
Company registration number 01865175
Principal office 10B Red House Yard
Gislingham Road
Thornham Magna
Eye
Suffolk
IP23 8HH
Registered office 10B Red House Yard
Gislingham Road
Thornham Magna
Eye
Suffolk
IP23 8HH
Trustees E Fisher - Chairman
R Greensted
S Armstrong
V Paleri
C Hopkins
T Lesser
A McDermott
Secretary A Chalk
Bankers Child & Co
1 Fleet Street
London
EC4Y 1BD
Independent examiner Steven Francis FCCA
Steven R Francis & Co Limited
Bury Lodge
Bury Road
Stowmarket, Suffolk
IP14 1JA
Investment advisor Lonsdale Services Limited
3 Curo Park
Frogmore
St Albans, Herts
AL2 2DD

1

J.L.O. (1984) Limited Trustees' Report

Introduction

The Trustees present their annual report and accounts for the year ended 31st December 2020. The Trustees are satisfied with the performance of the charity during the year. Based on the position at 31st December 2020 the Trustees consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations.

Name and constitution of the charity

The registered name of the charity is J.L.O. (1984) Limited, and is also known as The Journal of Laryngology and Otology. The charity was incorporated on 21st November 1984 and is governed by its Memorandum and Articles of Association.

Objectives and activities of the charity

The objects of the charity are to educate the public and promote the sciences of Laryngology and Otology and allied sciences for the benefit of the public in particular by publishing the Journal of Laryngology and Otology and any similar publications or supplements.

In furtherance of its principal object, J.L.O. (1984) Limited will continue to publish and promote The Journal of Laryngology and Otology and its associated supplements. The Journal is a member of the HINARI scheme of The World Health Organisation (WHO), and is provided free of charge to those in the world's poorest countries.

J.L.O. (1984) Limited also disseminates educational material through its website; www.jlo.co.uk. The charity continues develop the J.L.O. website with the aim of making this a platform for electronic learning. Surgical videos across the disciplines have been produced and have been very well received. The library of presentations is a useful resource and remain free to access for all. The electronic archive of all The Journal's content since it was established in 1887 continues to be an invaluable resource for those studying the history of medicine, and is available through the J.L.O. website.

Organisation

The Board of Trustees (as listed on page 1) administers the charity and meets physically at least twice every year and also electronically as often as required to meet immediate needs, in accordance with the Articles of Association.

Appointment of Trustees

The Board consist of at least six and not more than ten individuals, all of whom must be members of the company. There are currently seven Trustees.

One third of the Trustees (or the number nearest to one third) must retire at each Annual General Meeting.

Appointments may be based on specific skills required to help the charity meet its objectives. In the event of a vacancy occurring, the normal practice is for the Charity to invite a Senior Assistant Editor to become a Trustee.

Trustee Remuneration

The remuneration of Trustees is agreed annually. This is strictly by Trustees who are not remunerated for their services to the Journal only. They will decide the level of remuneration of those who are remunerated. For medically qualified Trustees the level of remuneration is based on the NHS pay scales.

2

J.L.O. (1984) Limited Trustees' Report

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of the affairs of the charity and of its incoming resources and application of resources, including its net income and expenditure for the year.

In preparing these accounts, the Trustees are required to:

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

Investment powers

Under the Memorandum and Articles of Association, the charity has the power to make any investments which the Trustees see fit in accordance with the charity's Investment Policy after taking independent financial advice.

Review of the activities

Despite the challenging environment caused by the Covid pandemic, twelve journal issues each of 96 pages were published during 2020 as normal.

In 2020 the charity fast-tracked 38 Covid-related papers and published these as open access to ensure the articles could be read by the widest possible audience.

A pleasing increase in rates of full text article reads was achieved in the year as well as an increase in the registrants to the electronic table of contents and social engagement with journal content. Online usage of the journal continues to increase with almost a two-fold improvement compared to 2018.

A virtual issue on Noise and Ear Trauma was completed. An editorial on WHO World report on Hearing and two Otolaryngology Editors Consortium editorials were also published in 2020.

The surgical videos continue to be a popular resource for the ENT surgical fraternity with views increasing again in 2020 with most views from UK, USA, India, Australia, Egypt and Turkey respectively.

J.L.O. (1984) Limited holds annual awards for the best research published in The Journal in up to four categories - Review, Main Article, Basic Science, and Short Communication/Clinical Record. Due to the Covid-19 pandemic the annual JLO Study Day was cancelled in 2020.

3

J.L.O. (1984) Limited Trustees' Report

Review of the activities (cont'd)

Historically the JLO has supported the RSM Visiting Professors. The Covid-19 pandemic saw the cancellation of this scheme in 2020. However, the charity had already decided to withdraw its funding after 2020 due to the uncertainty of future income from journal publishing.

Trustees support meetings of trainees, offering best paper prizes, to promote the Journal.

The charity's grant making policies

J.L.O. (1984) Limited gives awards on an annual basis as rewards for the best research published in The Journal.

Public benefit policy

In planning its activities for the year J.L.O. (1984) Limited kept in mind the Charity Commission guidance on public benefit in regards to the duty in section 4 of the 2011 Charities Act. The charity produces a specialist medical journal which is subscribed to by medical institutions, hospitals, libraries and medical professionals worldwide. The journal enables medical professionals to have the most up to date information on appropriate medical procedures when treating members of the public. The charity also manages a website (www.jlo.co.uk). The website features the latest information as well as a database of historical information available to health professionals. The charity also uses its surplus funds to continually work to update and improve the website. In view of this the Trustees consider they have complied with the duty in section 4 of the 2011 Charities Act.

Relationships with other groups, charities and individuals

The charity works closely with other professional organisations in the field of Laryngology and Otology worldwide and is seeking to strengthen its links with societies in HINARI scheme countries. The journal has a close relationship with the Association of Otolaryngologists in Training (AOT), the Student and Foundation doctors ENT group (SFO-UK), the South West Academic group (SWEAM) and the British Society for the History of ENT. This involves presentation prize sponsorship and judging, and thereby encourages high quality submissions to the journal.

Reserves policy

The Trustees have determined that the level of free reserves (that is those funds not tied up in the designated Future Charitable Awards Fund) should be in the region of £750,000 in order to meet its contractual obligations and ensure a sound financial base and to expand the charity's operations, if required. The free reserves at present stand at £1,134,042 (2019: £1,068,969). The Trustees are mindful that the majority of the Charity's income is from a single source over which it has limited control and is forecast to decline significantly from 2021. For this reason reserves are currently being maintained at levels comparable to prior years.

The charity has not added funds to its designated accounts for 'future charitable awards' due to the uncertainty in the current economic climate concerning the value of its investments and the continuing reduction in royalty income. The move towards open access publishing will involve both investment from the charity and yet see a decline in revenues. Until the future income streams of journal publishing become clearer the Trustees believe it is prudent to restrict charitable awards. The charity actively reviews this and will allocate further funds to the designated fund when appropriate.

4

J.L.O. (1984) Limited Trustees' Report

Transaction and financial position

The financial statements are set out on pages 7 to 13. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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). As stated in the introduction to this report, the Trustees consider the financial performance by the charity during the year to have been satisfactory.

The key source of income for the charity is royalties from the publication of the Journal of Laryngology and Otology. The Statement of Financial Activities show net income for the year of a revenue nature of £17,026 (2019: £6,420) with a realised loss on fixed asset investments of £nil (2019: £nil) and an unrealised gain on fixed asset investments of £48,047 (2019: £17,331), making a net gain of £65,073 (2019: £23,751).

The total reserves at the year end after accounting for unrealised gains, stand at £1,269,743 (2019: £1,204,670).

The major risks to which the charity is exposed and reviews and systems to mitigate risks

The Trustees have considered the risks to the charity and are of the opinion that sufficient control procedures are in place to identify and control these risks as they arise.

Share capital

The company is limited by guarantee and therefore has no share capital.

The Members of the Board of Trustees of the Charity

During the year ended 31st December 2020 and to the date of signing the accounts the members of the Board of Trustees were:

E Fisher - Chairman R Greensted S Armstrong V Paleri C Hopkins T Lesser A McDermott

(Retired and re-elected on 28 May 2020) (Retired and re-elected on 28 May 2020)

All the Directors of the company are also Trustees of the charity, and their responsibilities include all the responsibilities of Directors under the Companies Acts and of Trustees under the Charities Acts.

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the Board on and signed on its behalf by:

E Fisher - Chairman Trustee

5

Independent Examiner's Report to the Trustees of J.L.O. (1984) Limited

I report to the charity trustees on my examination of the accounts of the company for the year ended 31st December 2020 which are set out on pages 7 to 13.

Respective responsibilities of Trustees and Examiner

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mr Steven Francis FCCA Steven R Francis & Co Limited Chartered Certified Accountants Bury Lodge Bury Road Stowmarket, Suffolk IP14 1JA

6

J.L.O. (1984) Limited

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2020

Notes
Income and endowments from:
Charitable activities
2
Investments
3
Total income
Expenditure on:
Charitable activities
4
Total expenditure
Net income before gains or losses on investments
Net gains / (losses) on investments
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
189,719
214
189,933
172,907
172,907
17,026
48,047
65,073
1,204,670
1,269,743		 Total Funds
2020
£
189,719
214
189,933
172,907
172,907
17,026
48,047
65,073
1,204,670
1,269,743		 Total Funds
2019
£
211,673
4,133
215,806
209,386
209,386
6,420
17,331
23,751
1,180,919
1,204,670

All income and expenditure derives from continuing activities.

All comparative income and expenditure was unrestricted.

7

J.L.O. (1984) Limited
Balance Sheet
as at 31 December 2020
Notes
Fixed assets
Tangible fixed assets
6
Investments
7
Current assets
Debtors
8
Cash at bank and in hand
Creditors: amounts falling
due within one year
9
Net current assets
Net assets
Funds
Unrestricted funds
Total charity funds		 Company registration number: 01865175
Charity registration number: 293063
£
£
-
-
965,378
737,331
965,378
737,331
131,069
43,011
198,329
437,358
329,398
480,369
(25,033)
(13,030)
304,365
467,339
1,269,743
1,204,670
1,269,743
1,204,670
1,269,743
1,204,670
2020
2019		 Company registration number: 01865175
Charity registration number: 293063
£
£
-
-
965,378
737,331
965,378
737,331
131,069
43,011
198,329
437,358
329,398
480,369
(25,033)
(13,030)
304,365
467,339
1,269,743
1,204,670
1,269,743
1,204,670
1,269,743
1,204,670
2020
2019		 Company registration number: 01865175
Charity registration number: 293063
£
£
-
-
965,378
737,331
965,378
737,331
131,069
43,011
198,329
437,358
329,398
480,369
(25,033)
(13,030)
304,365
467,339
1,269,743
1,204,670
1,269,743
1,204,670
1,269,743
1,204,670
2020
2019
1,204,670
1,204,670
1,204,670

The Directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit in accordance with section 476 of the Act.

The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

E Fisher - Chairman Trustee Approved by the Board on

8

J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2020

1 Accounting policies

Basis of preparation

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

J.L.O. (1984) 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 note.

Fund accounting policy

Unrestricted income funds are general funds that are available for use at the Trustees' discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside at the discretion of the Trustees for specific purposes.

Furthers details of each fund are disclosed in note 11.

Incoming resources

Items of income are recognised and included in the accounts when all of the following criteria are met:

Resources expended

Liabilities are recognised as soon as there is a legal or constructive obligation commiting the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

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

Allocation of support costs

Support costs are those costs which have not been directly allocated to an activity of the charity but nevertheless support those activities. The basis on which support costs have been allocated are set out in note 4.

Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

9

J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2020

1 Accounting policies (continued)

Investments

Fixed asset investments are included at market value at the balance sheet date.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of the financial activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to statement of financial activities based on the market value at the end of the year.

Financial instruments

J.L.O. (1984) Limited 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.

2
Income from charitable activities
Unrestricted
Funds
£
Royalties
189,719
Study day
-
Sponsorship
-
Book sales
-
189,719
3
Investment income
Unrestricted
Funds
£
Income from investments
-
Interest on cash deposits
214
214		 Total Funds
2020
£
189,719
-
-
-
189,719
Total Funds
2020
£
-
214
214		 Total Funds
2019
£
202,652
3,000
6,000
21
211,673
Total Funds
2019
£
847
3,286
4,133

10

J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2020

4 Total resources expended

Direct costs
Product and allied costs
Visiting professor scheme
Awards and events
Support and governance costs
Secretary
Registered office fee
Insurance
Telephone and fax
Printing, postage and stationery
Website
Sundry expenses
Cost of Trustee meeting
Marketing
Independent examiner's fee
Legal and professional fees
Depreciation
Bank charges
For the year ended 31 December 2019		 Charitable
Activity
£
137,099
-
810
137,909
14,679
1,300
411
1,408
1,216
11,050
1,648
-
720
-
48
-
97
32,577
170,486
205,249		 Governance
£
-
-
-
-
-
-
-
-
-
-
-
221
-
2,200
-
-
2,421
2,421
4,137		 2020
Total
£
137,099
-
810
137,909
14,679
1,300
411
1,408
1,216
11,050
1,648
221
720
2,200
48
-
97
34,998
172,907		 2019
Total
£
139,394
7,820
16,161
163,375
14,679
1,300
391
952
722
13,490
1,795
1,987
8,124
2,150
48
251
122
46,011
209,386
209,386

5 Taxation

The company is a registered charity and the funds generated during the year relate to primary purpose trading, which is exempt from taxation.

6 Tangible fixed assets

Cost
As at 1 January 2020
As at 31 December 2020
Depreciation
As at 1 January 2020
Charge for the year
As at 31 December 2020
Net Book Value
As at 31 December 2020
As at 31 December 2019		 Plant &
Machinery
£
1,098
1,098
1,098
-
1,098
-
-

11

J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2020

7 Investments held as fixed assets

Market Value
As at 1 January 2020
Additions
Unrealised gain
As at 31 December 2020
Net Book Value
As at 31 December 2020
As at 31 December 2019
All investment assets were held in the UK.
8
Debtors
Trade debtors
Prepayments and accrued income
9
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security costs
Accruals and deferred income		 2020
£
87,995
43,074
131,069
2020
£
3,248
13,585
8,200
25,033		 Listed
Investments
£
737,331
180,000
48,047
965,378
965,378
737,331
2019
£
-
43,011
43,011
2019
£
3,996
6,884
2,150
13,030

12

J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2020

10 Related parties

Related party transactions

Under clause 4.17 of the Memorandum of Association the company is able to make payments to staff, agents and advisors. To this end the Board has approved payments to professionals who are related to the company. These are noted below.

During the year R Greensted, a Trustee, received Managing Editor's fees of £48,916 (2019 - £48,916).

During the year the following Trustees received Senior Editor's fees:

E Fisher £11,902 (2019: £11,902) M Hussain (retired 31 December 2019) £0 (2019: £11,902)

During the year the following Trustees received Senior Assistant Editor's fees:

A McDermott

£5,802 (2019: £0)

Travel expenses totalling £108 were reimbursed to two Trustees during the year (2019 - £1,157 - two Trustees).

No individual received fees or remuneration exceeding £60,000 in the year.

13

J.L.O. (1984) Limited

Notes to the Accounts For the Year Ended 31 December 2020

11 Analysis of funds

Designated Funds
Future Unrestricted
Fixed Asset
Charitable
Income
Investment
Award
Fund
Fund
At 1 January 2020
135,701
348,969
720,000
Income
-
189,933
-
Expenditure
-
(172,907)
-
Other recognised
gains / (losses)
-
48,047
-
Transfer
-
(180,000)
180,000
At 31 December 2020
135,701
234,042
900,000
Designated Funds
Future Unrestricted
Fixed Asset
Charitable
Income
Investment
Award
Fund
Fund
At 1 January 2019
135,701
1,045,218
-
Income
-
215,806
-
Expenditure
-
(209,386)
-
Other recognised
gains / (losses)
-
17,331
-
Transfer
-
(720,000)
720,000
At 31 December 2019
135,701
348,969
720,000
General Funds
General Funds		 General
Funds
Total
1,068,969
189,933
(172,907)
48,047
-
1,134,042
General
Funds
Total
1,045,218
215,806
(209,386)
17,331
-
1,068,969		 Total
1,204,670
189,933
(172,907)
48,047
-
1,269,743
Total
1,180,919
215,806
(209,386)
17,331
-
1,204,670

14