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2022-03-31-accounts

COMPANY REGISTRATION NUMBER: 1939694

CHARITY REGISTRATION NUMBER: 294229

Wiseheights Limited

Company Limited by Guarantee Financial Statements

31 March 2022

COHEN ARNOLD

Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road London NW11 0PU

Wiseheights Limited

Company Limited by Guarantee

Financial Statements

Year ended 31 March 2022

Page
Trustees' annual report (incorporating the director's report) 1
Independent auditor's report to the members 8
Statement of financial activities (including income and expenditure
account) 14
Statement of financial position 15
Statement of cash flows 16
Notes to the financial statements 17

Wiseheights Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 March 2022

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2022.

Reference and administrative details

Registered charity name Wiseheights Limited Charity registration number 294229 Company registration number 1939694 Principal office and registered New Burlington House office 1075 Finchley Road London NW11 0PU The trustees Mr A Klein Mr J Sternlicht Mr G Berger Auditor Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road London NW11 0PU Bankers Barclays Bank Plc Leicester LE87 2BB Solicitors Hamlins LLP 273-287 Regent Street London W1B 2AD

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Wiseheights Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Structure, governance and management

Governing Document

Wiseheights Limited is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 15th August 1985.

Structure

The charity holds some of its properties through nominee companies, namely Castleview Properties Limited, Trinity Estates Limited, Trinity Estates 2 Limited and Brackley Estates Limited. These companies, which are incorporated in England and Wales, hold the legal title to properties on trust for the beneficial owner Wiseheights Limited. These companies file dormant company accounts as all their assets, liabilities, income and expenses are included in the charity's accounts. In addition, the charity holds the entire issued share capital of two dormant nominee companies, Prospect Properties Limited and Newbank Limited, both of which are incorporated in England and Wales.

Appointment, Training and Recruitment of Trustees

As set out in the Articles of Association, the members of the charity shall not exceed twenty five. There are two classes of members :

No person shall be admitted to the membership of the Company as an ordinary member unless:

All current trustees are ordinary members and no honorary members have been appointed. The organisation is run by governors who are the trustees. Every governor/trustee holds office until he/she shall die or shall cease to hold office by virtue of Article 48 of the Articles of Association.

It is not currently the intention of the trustees of the Charity to appoint new trustees. Should the situation change in the future, the trustees will apply suitable recruitment and training procedures.

Employees, Staff and Trustees Remuneration

All trustees give their time voluntarily and no benefit or expenses were paid to them during the year. The charity has no employees except for the three Trustees. None of the governors/trustees have any beneficial interest in the company.

Organisation

Unless and until otherwise determined by the charity, the board of trustees (Council) shall consist of not less than two and not more than ten governors/trustees. The council appoints from among its members a Chairman and a Vice-Chairman and, in the event that any vacancy arises, the Council shall as soon as practicable fill the vacancy. Three ordinary members present in person shall form a quorum at a general meeting.

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Wiseheights Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Structure, governance and management (continued)

Risk management

The trustees have identified and reviewed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and are satisfied that systems are in place to mitigate those risks.

Financial risk management and policies

The charity holds or issues financial instruments in order to achieve three main objectives being:

a) to finance its operations

b) to manage its exposure to interest and currency risks arising from operations and from its sources of finance; and

c) to generate funds.

In addition various financial instruments (e.g. debtors, creditors, prepayments and accruals) arise directly from the charity's operations.

Credit Risk

The charity monitors credit risk closely and considers that its current policies of credit risk checks meets its objectives of managing exposure to credit risk. The charity has no significant concentrations of credit risk. Amounts shown in the balance sheet represent the maximum anticipated credit risk exposure. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Objectives and activities

Charitable Objects

The objects of the charity are:

Aims, Objectives and activities

The aim of the charity is to be self funding from the income from its investment assets, namely the listed shares and supplementary income from functional properties.

The charity does not engage in fund raising activities, however welcomes donations from other charities and organisations to fund its activities.

The aim of the charity (both short term and long term) is grant making to meet its primary objectives as set out above. The charity makes grants to other charities, utilising reserves in lean times, and success is measured by the quantum of grants it makes in a year.

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Wiseheights Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Objectives and activities (continued)

Public Benefit

The trustees confirm that they have referred to guidelines contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policies for the year and complied with its duty to have due regard to the commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

The grant making policy of the charity as stated below helps the charity to fulfill its duty to act for the public benefit in accordance with section 4 of the Charities Act 2006.

Grant making policy

This charity was established to support the activities of Jewish religious organisations, especially in the field of education and to provide philanthropic aid to the needy. Grants are made to charitable institutions and organisations which conform to the objects of the charity after the trustees have satisfied themselves as to the bona fides of the recipients. Donations are made to organisations providing a sound religious education in accordance with doctrines and principles of traditional Judaism and to institutions set up to provide aid to the needy, with a view to achieving the objects of the charity.

Applications for grants are made in writing to the charity or in person to the Trustees by voluntary and community organisations as well as by individuals on behalf of impoverished individuals or by those said individuals themselves. All donations above £10,000 require approval of all of the Trustees and after making the necessary checks, proportional to the level of funding involved, donations are granted.

Wiseheights Limited regularly supports charitable organisations and institutions both in respect of revenue and capital projects.

Investment Powers and Performance

Under the Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit provided that funds utilised are not immediately required for use in connection with any of its objects. The trustees regularly review the charity's position and needs in respect of the investment policy.

Besides the charitable activities carried out through charitable donations, the charity owns several functional proprties, listed as tangible assets in the financial statements. The main site is used for the communal synagogue with various educational functions performed in other sites which the charity owns. Over the recent prior years, the charity has purchased further properties with the intention of functional usage as well as to allow for spare capacity should the need arise. While the charity's immediate usage of these building is not required, they are rented out in order to increase the charity's revenue.

Strategic report

The Charity invests in listed investments to generate income with which it makes grants, donations and loans to charities and institutions that fall within the objectives of the charity. When enough funds are available, the charity has purchased functional properties in which educational and religious activities occur. If there is a period where the functional property is not being used for the charitable activities, the property may be rented out to increase the income of the charity.

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Wiseheights Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Achievements and performance

During the year, £2,819,800 (2021: £2,696,300) was distributed in furtherance of the charity's objectives. Over 70 institutions and organisations were the recipients of the above donations. In addition to this, as part of its direct charitable activities, the charity leases a building for £175,000 which it allows a school to occupy and operate in rent-free.

The income of the charity has increased by 6.7% as a result of the increase in dividends received from its listed investments. Trustees had expected income to decline in the year due to the current Covid pandemic. Rental income has increased in year as refurbished properties have been relet. Past reserves have been not been utilised in the current period to cover any shortfall of income over expenditure in the year as trustees have reduced the value of grants available.

The value of the listed investments in note 14 have increased by £3m (2021:£12m). The value of this investment is based on market conditions. Trustees are confident that with market conditions improving, losses made will be regained and income levels rise once again.

No change in activities is envisaged in the immediate future.

Financial review

The charity is dependent for its income on its investment activities. Rental income declined during the year as as spare capacity on functional property that was utilised last year generated £245,5000 but though available was not utilised in the current year. Besides this, £2,710,400 (2021: £2,347,400) of dividend income arose from its listed investments. Total investment income during the year rose to £3,662,687 (2021: £3,432,507).

Key performance indicators (KPIs)

The Trustees monitor the Charity's performance progress against its strategic objectives and the financial performance of its operations on a regular basis. Performance is assessed against the strategy and expectations using financial and non financial measures. The most significant KPIs used by the charity are as follows:

2022 2021
£ £
Grants and donations paid out 2,819,800 2,696,300
Net rental income 784,293 1,024,919
Dividend income from listed investments 2,710,400 2,347,400
Listed investments at fair value 44,104,500 40,837,500

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Wiseheights Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Financial review (continued)

Subsidiaries and other investments

The charity holds the entire issued share capital of several nominee companies. These companies are all incorporated in England and Wales. Nominee companies hold assets on trust for the beneficial owner Wiseheights Limited.

The Charity's listed investments comprise 2,420,000 ordinary shares in S & U. Plc representing 20.2% of the issued ordinary share capital of that company. The mid market value of the holding, based on the London Stock Exchange daily listing, at 31st March 2022 was £58,806,000 : (2021:£54,450,000). However, it is considered that this is not an accurate reflection of the true value of this shareholding due to the existence of other substantial holdings and the thin market in which the shares are traded. The trustees have been advised that in the circumstances it would be appropriate to apply a 25% discount to the market value of the shareholding and the financial statements have been prepared on this basis. The charity has no control and no dominant influence over the operation and financial policies of S. & U. Plc.

Plans for future periods

The charity plans continuing the activities outlined above in the coming years subject to incoming resources being maintained at a satisfactory level. It is the trustees' aim to ensure future income stream by the acquisition of investments.

Fixed Assets

The movements in investments are fully reflected in the notes 13, 14 & 15 to the financial statements.

Tangible Fixed Assets

The charity has property worth £14.9m (2021: £14.9m) which is intended for functional use and is stated at cost. It is treated as such until it ceases to be held for functional purposes. There were no additions during the year.

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which the trustees think appropriate after considering the future commitments of the charity and the likely administrative costs of the charity for the next year. The free reserves of the charity are the current assets and investments at cost, minus current liabilities. They do not include the tangible fixed assets of the charity as these are functional buildings which the charity uses for its charitable activities. At the year end, the charity had £6,915,852 (2021: £6,822,823) of free reserves.

Trustees' responsibilities statement

The trustees, who are also directors 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

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Wiseheights Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements 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.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

The trustees' annual report and the strategic report were approved on 25 January 2023 and signed on behalf of the board of trustees by:

Mr A Klein Trustee

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Wiseheights Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Wiseheights Limited

Year ended 31 March 2022

Opinion

We have audited the financial statements of Wiseheights Limited (the 'charity') for the year ended 31 March 2022 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, 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 FRS 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity'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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Wiseheights Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Wiseheights Limited (continued)

Year ended 31 March 2022

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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity 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 the Companies Act 2006 requires us to report to you if, in our opinion:

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Wiseheights Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Wiseheights Limited (continued)

Year ended 31 March 2022

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

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Wiseheights Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Wiseheights Limited (continued)

Year ended 31 March 2022

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:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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Wiseheights Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Wiseheights Limited (continued)

Year ended 31 March 2022

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

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Wiseheights Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Wiseheights Limited (continued)

Year ended 31 March 2022

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.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

25 January 2023

Moshe Broner-Cohen (Senior Statutory Auditor) Date

For and on behalf of Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road London NW11 0PU

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Wiseheights Limited

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 March 2022

2022 2022 2021
Unrestricted
funds Total funds Total funds
Note £ £ £
Income and endowments
Investment income 5 3,662,687 3,662,687 3,432,507
  
Total income 3,662,687 3,662,687 3,432,507
  
Expenditure
Expenditure on raising funds:
Investment management costs 6 (304,526) (304,526) (197,021)
Expenditure on charitable activities 7,8 (3,128,778) (3,128,778) (2,921,388)
  
Total expenditure (3,433,304) (3,433,304) (3,118,409)
  
  
Net income 229,383 229,383 314,098
  
Other recognised gains and losses
Fair value movements 3,267,000 3,267,000 11,797,500
  
Net movement in funds 3,496,383 3,496,383 12,111,598
Reconciliation of funds
Total funds brought forward 51,408,967 51,408,967 39,297,369
  
Total funds carried forward 54,905,350 54,905,350 51,408,967
  

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 17 to 27 form part of these financial statements.

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Wiseheights Limited

Company Limited by Guarantee

Statement of Financial Position

31 March 2022

31 March 2022
2022 2021
Note £ £
Fixed assets
Tangible fixed assets 13 14,856,282 14,856,282
Investments 14 44,104,500 40,837,500
 
58,960,782 55,693,782
Current assets
Debtors 16 476,041 496,600
Cash at bank and in hand 736,449 693,348
 
1,212,490 1,189,948
Creditors: amounts falling due within one year 18 (1,290,438) (1,360,925)
 
Net current liabilities (77,948) (170,977)
 
Total assets less current liabilities 58,882,834 55,522,805
Creditors: amounts falling due after more than one year 19 (3,977,484) (4,113,838)
 
Net assets 54,905,350 51,408,967
 
Funds of the charity
Unrestricted funds 54,905,350 51,408,967
 
Total charity funds 20 54,905,350 51,408,967
 

These financial statements were approved by the board of trustees and authorised for issue on 25 January 2023, and are signed on behalf of the board by:

Mr A Klein Trustee

Mr J Sternlicht Trustee

The notes on pages 17 to 27 form part of these financial statements.

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Wiseheights Limited

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 March 2022

2022 2021
£ £
Cash flows from operating activities
Net income 229,383 314,098
Adjustments for:
Dividends, interest and rents from investments (3,662,687) (3,432,507)
Accrued expenses/(income) 86,098 (3,451)
Changes in:
Trade and other debtors (60,383) 91,565
Trade and other creditors (75,643) 38,000
 
Cash generated from operations (3,483,232) (2,992,295)
 
Net cash used in operating activities (3,483,232) (2,992,295)
 
Cash flows from investing activities
Dividends, interest and rents from investments 3,662,687 3,432,507
Purchase of tangible assets (28,664)
 
Net cash from investing activities 3,662,687 3,403,843
 
Cash flows from financing activities
Proceeds from borrowings (136,354) (140,482)
 
Net cash used in financing activities (136,354) (140,482)
 
Net increase in cash and cash equivalents 43,101 271,066
Cash and cash equivalents at beginning of year 693,348 422,282
 
Cash and cash equivalents at end of year 736,449

693,348


The notes on pages 17 to 27 form part of these financial statements.

- 16 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2022

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is New Burlington House, 1075 Finchley Road, London, NW11 0PU.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

Notwithstanding any uncertainties, the financial statements have been prepared in accordance with the accounting principles appropriate to a going concern, as the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due, based on the net current asset position of the charity and available sources of finance. The Trustees recognise that they have the ability to exercise control over the charity's grant making charitable activities due to the absence of any legally binding obligations.

Judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Governance Costs

Governance Costs include the cost of the preparation and audit of the financial statements and the cost of any legal advice to the trustees on governance or constitutional matters.

Income tax

The Charity is not liable to direct taxation (Income Tax) on its income which falls within the various exemptions available to registered charities. As a result no Deferred tax is provided on timing differences. The Charity is not registered for Value Added Tax (VAT) and is therefore unable to reclaim any input tax it suffers on its purchase. Expenditure in the accounts is therefore shown inclusive of VAT where appropriate.

- 17 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

3. Accounting policies (continued)

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for a particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

- 18 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

3. Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost. This relates to the charity's properties are which in intended for functional use and are stated cost and are treated as such until it is expected that fair value will be reliably measurable on a going concern basis.

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

- 19 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

3. Accounting policies (continued)

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Acquisitions and disposals of properties

Acquisitions and disposals of properties are considered to take place at the legal completion and are included in the financial statements accordingly.

4. Limited by guarantee

Wiseheights Limited is a company limited by guarantee governed by its Memorandum and Articles of Association dated 15th August 1985.

- 20 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

5. Investment income

5. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Gross rental income 952,287 952,287 1,085,107 1,085,107
Income from listed investments 2,710,400 2,710,400 2,347,400 2,347,400
   
3,662,687 3,662,687 3,432,507 3,432,507
   
6. Investment management costs
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Property management costs 23,644 23,644 20,398 20,398
Administration of investments 36 36
Property service charges 92,259 92,259
Rent collection 37,613 37,613 33,385 33,385
Property repairs and maintenance
charges 14,478 14,478 6,369 6,369
Mortgage Interest 136,532 136,532 136,833 136,833
   
304,526 304,526 197,021 197,021
   

7. Expenditure on charitable activities by fund type

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Charitable activities 2,994,800 2,994,800 2,871,300 2,871,300
Support costs 133,978 133,978 50,088 50,088
   
3,128,778 3,128,778 2,921,388 2,921,388
   
8. Expenditure on charitable activities by activity type
Activities
undertaken Grant funding Total funds Total fund
directly of activities Support costs 2022 2021
£ £ £ £ £
Charitable activities 175,000 2,819,800 2,994,800 2,871,300
Governance costs 133,978 133,978 50,088
    
175,000 2,819,800 133,978 3,128,778 2,921,388
    

Activities undertaken directly represents lease payments to another charity, The Palmtree Foundation Trust Limited, for the use of premises which Wiseheights Limited allows a school to occupy rent-free. Both The Palmtree Foundation Trust Limited and the school, Beis Ruchel D'Satmar (London) Limited, have a Trustee who is also a Trustee of Wiseheights Limited.

- 21 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

9. Analysis of support costs

9. Analysis of support costs
Support
costs Total 2022 Total 2021
£ £ £
General office 2,928 2,928 1,934
Finance costs 76,706 76,706 33,784
Legal and professional fees 54,344 54,344 14,290
  
133,978 133,978 50,008
  
10. Analysis of grants
2022 2021
£ £
Grants to institutions
The Beth Hamedrash Satmar Trust 50,000 103,400
Beis Ruchel D'Satmar (London) Limited 35,000
CMZ Ltd 20,000
Rookwood Foundation Limited 54,000
United Talmudical Associates Ltd 1,505,000 1,455,000
Vyoel Moshe Charitable Trust 30,000
Yetev Lev London Jerusalem Trust 50,000 85,000
Yesamach Levav 35,000 35,000
Y G S Yeshiva Gedola Seminar 18,000
Asser Bishvil Foundation 30,000 65,000
UTRY 40,000
YBP Limited 80,000
Chevras Mo'oz Ladol 53,000 53,000
Cong V'Yoel Moshe D'Satmar Charitable Trust 30,000 48,000
Collel Chibath Yerushalayim Trust 35,000 50,000
SF Foundation 82,000
Donations below £30,000 754,800 719,900
 
2,819,800 2,696,300
 
Total grants 2,819,800 2,696,300
 
Analysis of Grants to Institutions:
Advancement of the Jewish Religion 884,515 921,835
Advancement of Jewish Education 968,720 966,035
Relief of Poverty 766,565 808,430
 
Total 2,819,800 2,696,300
 

The grant making policy of the charity, as stated in the Trustees report, helps the charity to fulfill its duty to act for the public benefit in accordance with section 4 of the Charities Act 2006.

- 22 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

11. Auditors remuneration

Auditors remuneration
2022 2021
£ £
Fees payable for the audit of the financial statements 13,380 4,800
 
Fees payable to the charity's auditor and its associates for other services:
Taxation compliance services 51,600 14,800
Other non-audit services 3,480 6,000
 
55,080 20,800
 

12. Trustee remuneration and expenses

The charity has no staff other than the the three trustees, all of whom give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2020: £nil).

The charity did not meet any expenses (2020: £nil) incurred by the trustees for services provided to the charity.

13. Tangible fixed assets

Tangible fixed assets
Freehold
property
£
Cost
At 1 April 2021 and 31 March 2022 14,856,282

Carrying amount
At 31 March 2022 14,856,282

At 31 March 2021 14,856,282


Tangible fixed assets are initially recorded at cost. This related to the charity's properties which are intended for functional use. These are stated at cost and are treated as such until it ceases to be used for funtional purposes.

The main site is used for the communal synagogue with various educational functions performed in other sites which the charity owns. Over the recent prior years, the charity has purchased further properties with the intention of functional usage as well as to allow for spare capacity should the need arise. While the charity's immediate usage of these building is not required, they are rented out in order to increase the charity's revenue.

- 23 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

14. Investments

Investments
Listed
investments
£
Cost or valuation
At 1 April 2021 40,837,500
Additions
Fair value movements 3,267,000

At 31 March 2022 44,104,500

Impairment
At 1 April 2021 and 31 March 2022
Carrying amount
At 31 March 2022 44,104,500

At 31 March 2021 40,837,500


All investments shown above are held at valuation.

Financial assets held at fair value

Listed Investments:

The historical cost of the listed investments is £6,993,800 which was their mid-market value on the date that they were gifted to the charity.

The listed investments comprise 2,420,000 ordinary shares in S. & U. Plc representing 20.2% of the issued ordinary share capital of that company. The mid market value of the holding, based on the London Stock Exchange daily listing, at 31st March 2022 was £58,806,000. However, it is considered that this is not an accurate reflection of the true value of this shareholding due to the existence of other substantial holdings and the thin market in which the shares are traded. The trustees have been advised that in the circumstances it would be appropriate to apply a 25% discount to the market value of the shareholding and the financial statements have been prepared on this basis. The charity has no control and no dominant influence over the operation and financial policies of S. & U. Plc.

The charity's share of the turnover, assets and liabilities in the investment for the year ended 31 January 2022 is as follows:

  1. Turnover £17,753,578

  2. Fixed assets £37,206,178

  3. Current assets £28,894,080

  4. Creditors: amounts falling due within one year £1,775,378

  5. Creditors: amounts falling due after more than one year £22,561,986

  6. Net assets £41,762,894

- 24 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

15. Investment entities

Subsidiaries and other investments

The charity holds the entire issued share capital of three companies, Prospect Properties Limited, Newbank Limited and Brackley Estates Limited. All these companies, incorporated in England and Wales, act as nominee companies that hold assets and liabilities on trust for the beneficial owner Wiseheights Limited; their own accounts, as well the accounts of other companies that act as nominees for Wiseheights Limited, are always dormant and all their assets, liabilities and activities, held and carried out on trust for Wiseheights Limited, are reported in the charity's accounts.

16. Debtors

Debtors
2022 2021
£ £
Trade debtors 403,647 332,433
Prepayments and accrued income 3,989 84,357
Other debtors 68,405 79,810
 
476,041 496,600
 
Cash and cash equivalents
Analysis of cash and cash equivalents
2022 2021
£ £
Cash in hand 736,449 693,348
Overdraft facility repayable on demand
 
Total cash and cash equivalents 736,449 693,348
 
Creditors: amounts falling due within one year
2022 2021
£ £
Bank loans and overdrafts 140,500 140,500
Trade creditors 43,750
Accruals and deferred income 106,188 101,032
Other creditors 1,000,000 1,119,393
 
1,290,438 1,360,925
 
Creditors: amounts falling due after more than one year
2022 2021
£ £
Bank loans and overdrafts 3,977,484

4,113,838


17. Cash and cash equivalents

18. Creditors: amounts falling due within one year

19. Creditors: amounts falling due after more than one year

The company has charged its tangible fixed assets with a market value of £6,337,806 as security for the loan facilities granted.

- 25 -

Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

19. Creditors: amounts falling due after more than one year (continued)

20. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At Gains and At
1 April 2021 Income Expenditure losses 31 March 2022
£ £ £ £ £
General funds 17,565,267 3,662,687 (3,433,304) 17,794,650
Fair value reserve 33,843,700 3,267,000 37,110,700
    
51,408,967 3,662,687 (3,433,304) 3,267,000 54,905,350
    
At Gains and At
1 April 2020 Income Expenditure losses 31 March 2021
£ £ £ £ £
General funds 17,251,169 3,432,507 (3,118,409) 17,565,267
Fair value reserve 22,046,200 11,797,500 33,843,700
    
39,297,369 3,432,507 (3,118,409) 11,797,500 51,408,967
    

21. Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Total Funds
Funds 2022
£ £
Tangible fixed assets 14,856,282 14,856,282
Investments 44,104,500 44,104,500
Current assets 1,212,490 1,212,490
Creditors less than 1 year (1,290,438) (1,290,438)
Creditors greater than 1 year (3,977,484) (3,977,484)
 
Net assets 54,905,350 54,905,350
 
Unrestricted Total Funds
Funds 2021
£ £
Tangible fixed assets 14,856,282 14,856,282
Investments 40,837,500 40,837,500
Current assets 1,189,948 1,189,948
Creditors less than 1 year (1,360,925) (1,360,925)
Creditors greater than 1 year (4,113,838) (4,113,838)
 
Net assets 51,408,967 51,408,967
 

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Wiseheights Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

22. Financial instruments

The carrying amount for each category of financial instrument is as follows:

2022 2021
£ £
Financial assets measured at fair value through income and expenditure
Financial assets measured at fair value through income and
expenditure 44,104,500

40,837,500


23. Analysis of changes in net debt

Analysis of changes in net debt
At At
1 Apr 2021 Cash flows 31 Mar 2022
£ £ £
Cash at bank and in hand 693,348 43,101 736,449
Debt due within one year (140,500) (140,500)
Debt due after one year (4,113,838) 136,354 (3,977,484)
  
(3,560,990)

179,455

(3,381,535)


24. Related parties

Other creditors includes concessionary loans of £nil (2021: £104,250) due to companies under the control of the trustees and/or their families. These loans are interest free and repayable on demand. The following amounts were due to the connected undertakings: Crowngold Properties Limited £nil (2021: £1,500), The Palmtree Foundation Trust Limited Limited £nil (2021: £43,750) and Shulem B. Association Limited £nil: (2021: £59,000).

During the year the following donations were paid to charities who have common trustees or connections with the trustees of Wiseheights Limited: The Beth Hamedrash Satmar Trust £50,000 (2021: £103,400)and Beis Ruchel D'Satmar (London) Limited: £35,000 (2021: £25,000).

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