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 2021
## **J.L.O. (1984) Limited**
## **Annual Report and Financial Statements Contents**
||**Page**|
|---|---|
|Reference and Administrative Details|1|
|Trustees' Report|2 - 6|
|Independent Examiner's Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9|
|Notes to the Financial Statements|10 - 14|
## **J.L.O. (1984) Limited Reference and Administrative Details**
|Charity name|J.L.O. (1984) Limited|
|---|---|
|Charity 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|
||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 2021. 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 to 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.
## **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 six 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. Given that the main income and expenditure of the charity is the publication of a journal 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 those Trustees paid for their services is agreed annually. Only Trustees who are not remunerated for their services to the Journal decide on the level of remuneration of Trustees who are paid for their services. 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:
- Select suitable accounting policies and then apply them consistently
- Make judgments and estimates that are reasonable and prudent
- Prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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**
The journal contained 189 papers in the previous year, 161 were main articles/reviews and there were 28 clinical records/short communications. The robust paper selection process ensures the ongoing quality of papers but results in a very high rejection rate.
In 2021 the charity continued to fast track Covid-related papers and these were published as open access to ensure a free and wide dissemination of these papers.
The charity undertook a review of its publishing contract during 2021 and negotiated new terms with Cambridge University Press to continue to publish the journal. The Trustees are very aware of the ongoing shift to open access and other deals which have a significant bearing on the finances of producing a peer reviewed high quality medical journal.
The charity has started to move from its proprietary manuscript processing software to ScholarOne. This has improved services to authors and metadata capture. This has led to a much faster turnaround of papers which is an important metric for authors.
There was an 84% increase in article downloads from 2020 to 2021, surpassing half a million downloads for the first time and the Impact Factor of the journal rose 34% to 1.469.
3
## **J.L.O. (1984) Limited Trustees' Report**
## **Review of the activities (cont'd)**
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.
The charity's new surgical video plans were delayed due to the ongoing restrictions of theatre and hospital access during the pandemic. However, support funding is in place and these videos will be recorded and made freely available when restrictions allow.
The charity agreed to fund the publication of the latest Head and Neck Cancer Guidelines in 2022 and arranged contracts with Publishers and started the support work for this supplement during the year.
The Trustees have reviewed the value provided by trainee Study Days provided in the past. The sector is well served with training opportunities and considering the fundamental changes in publishing and a potential declining income stream from journal publication the Trustees want to invest in CPD and training of Assistant Editors and Reviewers. In addition the Trustees continue to review how the move to Open Access can be made and costs still covered.
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 £1,150,452 (2020: £1,134,042). The Trustees remain 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 in the coming years. In addition volatility and uncertainty in the investment market will affect the charity's finances. Until there is some certainty on the future income streams the Trustees believe it is prudent to maintain reserves at levels comparable to recent years.
4
## **J.L.O. (1984) Limited Trustees' Report**
## **Reserves policy (cont'd)**
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 publishing income. The ongoing 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.
## **Transaction and financial position**
The financial statements are set out on pages 8 to 14. 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 expenditure for the year of a revenue nature of £6,980 (2020: net income £17,026) with a realised gain on fixed asset investments of £nil (2019: £nil) and an unrealised gain on fixed asset investments of £23,390 (2020: £48,047), making a net gain of £16,410 (2020: £65,073).
The total reserves at the year end after accounting for unrealised gains, stand at £1,286,153 (2020: £1,269,743).
## **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 2021 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 6 May 2021) (Resigned on 6 May 2021)
5
## **J.L.O. (1984) Limited Trustees' Report**
## **The Members of the Board of Trustees of the Charity (cont'd)**
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
6
## **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 2021 which are set out on pages 8 to 14.
## **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
7
## **J.L.O. (1984) Limited**
## **Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2021**
|**Notes**
**Income and endowments from:**
Charitable activities
2
Investments
3
Total income
**Expenditure on:**
Charitable activities
4
Total expenditure
Net (expenditure) / 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**
**£**
168,290
28
168,318
175,298
175,298
(6,980)
23,390
16,410
1,269,743
1,286,153|**Total Funds**
**2021**
**£**
168,290
28
168,318
175,298
175,298
(6,980)
23,390
16,410
1,269,743
1,286,153|**Total Funds**
**2020**
**£**
189,719
214
189,933|
|---|---|---|---|
||||172,907
172,907|
||||17,026
48,047|
||||65,073
1,204,670|
||||1,269,743|
All income and expenditure derives from continuing activities.
All comparative income and expenditure was unrestricted.
8
|**J.L.O. (1984) Limited**
**Balance Sheet**
**as at 31 December 2021**
**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
**£**
**£**
-
-
988,768
965,378
988,768
965,378
19,933
131,069
292,192
198,329
312,125
329,398
(14,740)
(25,033)
297,385
304,365
1,286,153
1,269,743
1,286,153
1,269,743
1,286,153
1,269,743
**2021**
**2020**|Company registration number: 01865175
Charity registration number: 293063
**£**
**£**
-
-
988,768
965,378
988,768
965,378
19,933
131,069
292,192
198,329
312,125
329,398
(14,740)
(25,033)
297,385
304,365
1,286,153
1,269,743
1,286,153
1,269,743
1,286,153
1,269,743
**2021**
**2020**|Company registration number: 01865175
Charity registration number: 293063
**£**
**£**
-
-
988,768
965,378
988,768
965,378
19,933
131,069
292,192
198,329
312,125
329,398
(14,740)
(25,033)
297,385
304,365
1,286,153
1,269,743
1,286,153
1,269,743
1,286,153
1,269,743
**2021**
**2020**|
|---|---|---|---|
|||||
||||1,269,743|
||||1,269,743|
||||1,269,743|
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
9
## **J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2021**
## **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:
- the charity has entitlement to the funds
- any performance conditions attached to the item of income have been met or are fully within the control of the charity
- there is sufficient certainty that a receipt of income is considered probable
- the amount can be measured reliably
## _**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.
10
## **J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2021**
## **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
168,290
Study day
-
Sponsorship
-
Book sales
-
168,290
**3**
**Investment income**
**Unrestricted**
**Funds**
**£**
Income from investments
-
Interest on cash deposits
28
28|**Total Funds**
**2021**
**£**
168,290
-
-
-
168,290
**Total Funds**
**2021**
**£**
-
28
28|**Total Funds**
**2020**
**£**
189,719
-
-
-|
|---|---|---|
|||189,719|
|||**Total Funds**
**2020**
**£**
-
214|
|||214|
11
## **J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2021**
## **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 2020|**Charitable**
**Activity**
**£**
136,757
-
1,000
137,757
14,679
1,300
-
831
483
13,249
2,327
-
1,079
-
1,108
-
135
35,191
172,948
170,486|**Governance**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
2,350
-
-
2,350
2,350
2,421|**2021**
**Total**
**£**
136,757
-
1,000
137,757
14,679
1,300
-
831
483
13,249
2,327
-
1,079
2,350
1,108
-
135
37,541
175,298|**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|
|||||172,907|
## **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 2021
Disposals
As at 31 December 2021
**Depreciation**
As at 1 January 2021
On disposals
As at 31 December 2021
**Net Book Value**
As at 31 December 2021
As at 31 December 2020|**Plant &**
**Machinery**
**£**
1,098
(1,098)|
|---|---|
||-|
||1,098
(1,098)|
||-|
||-|
||-|
12
## **J.L.O. (1984) Limited Notes to the Accounts For the Year Ended 31 December 2021**
|**7**
**Investments held as fixed assets**
**Market Value**
As at 1 January 2021
Unrealised gain
As at 31 December 2021
**Net Book Value**
As at 31 December 2021
As at 31 December 2020
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|**2021**
**£**
-
19,933
19,933
**2021**
**£**
-
6,390
8,350
14,740|**Listed**
**Investments**
**£**
965,378
23,390
988,768|
|---|---|---|
|||988,768|
|||965,378|
|||**2020**
**£**
87,995
43,074|
|||131,069|
|||**2020**
**£**
3,248
13,585
8,200|
|||25,033|
## **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 for part of the year, received Managing Editor's fees of £24,458 (2020 - £48,916).
During the year the following Trustees received Senior Editor's fees:
E Fisher £12,378 (2020: £11,902)
During the year the following Trustees received Senior Assistant Editor's fees:
A McDermott £6,034 (2020: £5,802)
Travel expenses totalling £nil were reimbursed to Trustees during the year (2020 - £108 - 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 2021**
## **11 Analysis of funds**
|**Designated Funds**
**Future Unrestricted**
**Fixed Asset**
**Charitable**
**Income**
**Investment**
**Award**
**Fund**
**Fund**
At 1 January 2021
135,701
234,042
900,000
Income
-
168,318
-
Expenditure
-
(175,298)
-
Other recognised
gains / (losses)
-
23,390
-
Transfer
At 31 December 2021
135,701
250,452
900,000
**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
**General Funds**
**General Funds**|**General**
**Funds**
**Total**
1,134,042
168,318
(175,298)
23,390
1,150,452
**General**
**Funds**
**Total**
1,068,969
189,933
(172,907)
48,047
-
1,134,042|**Total**
1,269,743
168,318
(175,298)
23,390
-|
|---|---|---|
|||1,286,153|
|||**Total**
1,204,670
189,933
(172,907)
48,047
-|
|||1,269,743|
14