**Registered number: 00792877 Charity number: 300923**
## **SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 OCTOBER 2021**
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Company, its Trustees and Advisers**|1|
|**Trustees' Report**|2|
|**Trustees' Responsibilities Statement**|8|
|**Independent Auditors' Report on the Financial Statements**|9 - 12|
|**Statement of Financial Activities**|13|
|**Balance Sheet**|14 - 15|
|**Statement of Cash Flows**|16|
|**Notes to the Financial Statements**|17 - 38|
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 OCTOBER 2021**
|**Trustees**|S E Kings, Chair|
|---|---|
||R W J Ford, Vice Chair|
||S Barr BA|
||A C J Cooper BSc|
||S J Greinig BA (resigned 4 March 2021)|
||R Hill BA (Hons), ACA|
||P R F Chanin MA, PhD (resigned 18 August 2021)|
||B K McLaughlin|
||R A Rowe|
||M S Salmon|
||P M C Stevens (resigned 7 February 2022)|
||R I Stones (appointed 16 June 2021)|
||A G Hart (appointed 16 June 2021)|
||C Cooper (appointed 16 December 2021)|
|**Company registered**
**number**
00792877
**Charity registered**
**number**
300923
**Registered office**
Totnes Road
Paignton
Devon
TQ4 7EU
**Company secretary**
C E Malkin (appointed 30 July 2021)
C J Pyne (resigned 26 July 2021)
**Chief Executive Officer**
**Executive Director**
D Flynn (appointed 1st December 2020)
S J Tonge BSc (resigned 30th June 2021)
**Independent auditors**
Bishop Fleming LLP
Chartered Accountants
2nd Floor Stratus House
Emperor Way
Exeter Business Park
Exeter
EX1 3QS
**Bankers**
Lloyds Bank plc
Paignton
Devon||
Page 1
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 OCTOBER 2021**
The Trustees submit their report and the audited financial statements for South West Environmental Parks Limited for the year ended 31 October 2021. The financial statements comply with the Charities Act 2011 and Companies Act 2006, the Memorandum and Articles of Association and have been prepared in accordance with the requirements of the Statement of Recommended Practice on accounting and reporting for charities (FRS 102) effective 1[st] January 2019.
The period covered by the report was one of unprecedented challenge brought about by the impacts of the prolonged COVID-19 pandemic. This report therefore documents the activities and performance of the charity within the context of an exceptionally difficult backdrop.
## **STRATEGIC AIM**
SWEPL is an education, scientific and conservation charity that takes action to protect at-risk animals and plants from the impacts of biodiversity loss through activities designed to help halt species decline.
## **CORE BELIEFS**
7KUHH FRUH EHOLHIV XQGHUSLQ WKH FKDULW\¶V ZRUN
- Every species is special
- Everything is connected
- Every action matters
## **PUBLIC BENEFIT**
In setting objectives and planning activities for the year, the trustees have given careful consideration to HQVXULQJ WKDW WKH FKDULW\¶V DFWLYLWLHV DUH WR WKH SXEOLF EHQefit, and they have had regard to the Charity. Accordingly, the activities at our sites during the last year were for the public benefit and were in accordance with the objects of the charity.
They are:
- To advance scientific knowledge of plants, animals and the natural world.
- To advance the education of students and the public on the conservation of the physical and naturalnworld and the promotion of biodiversity.
- To promote the conservation of the physical and natural environment and the maintenance of biological diversity.
In fulfilling its objectives, the charity brings its objectives and core beliefs to life through the START Programme.
## START has five components.
- providing long-term SAFE HAVENS at our sites for endangered species.
- taking the lead in promoting, building and supporting community and project partnerships to demonstrate how working TOGETHER (e.g. through citizen science projects and support for overseas programmes) can achieve impacts that contribute to halting species decline.
- taking ACTION that contributes to halting species decline through supporting sustainable habitats in the UK and overseas, where species may be protected and, when appropriate, into which they can be reintroduced.
- conducting and commissioning RESEARCH into biodiversity protection topics that relate to our core activity areas and animal wellbeing in order to ensure that we can advance the science-base for our programmes, promote improvements in animal welfare, and identify conservation challenges.
- using our platform as a credible conservation organisation to TELL people about why sustaining biodiversity is vital for us all, and the work that we do to help halt species decline, in order to influence public policy and individual actions.
Page 2
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021**
## **SUMMARY OF MAIN ACHIEVEMENTS**
## _Contribution to Conservation_
Despite needing to minimise our input to our conservation projects due to Covid impacts, all of our conservation projects have survived and some have achieved significant progress.
At Slapton, repairs and replacement of the boardwalk for public access to the reserve has been completed. The removal of an area of willow carr has also been achieved in line with the Management Plan. The social prescribing project did have reduced numbers due to successive lockdowns, but has been redeveloped for the coming year.
## _Education and Outreach_
The COVID pandemic had a significantly negative impact on the traditional approach to the delivery of education and outreach activities. Government requirements for lockdown and social distancing, limitations of schRROV¶ DELOLWLHV WR RUJDQLVH H[WHUQDO YLVLWV DQG RXU RZQ FDSDFLW\ FRQVWUDLQWV FRQVHTXHQW WR WKH UHVWUXFWXULQJ programme initiated in March 2020 meant that new and imaginative ways to continue our work needed to be identified.
COVID was a catalyst for change and we therefore pivoted to online education and outreach with a focus on structured lessons to support Key Stage curriculum requirements, support for home-schooling projects and informal education. We used social media, our own websites and YouTube as the delivery channels for these activities.
The education results were positive and enabled us to reach schools across the UK that would otherwise not have been able to engage with our programmes.
Informal outreach through social media also saw a significant uptake in reach with an average of 20k views for our Facebook and Instagram posts.
We will build on these insights to support our priorities for the next reporting period.
## **FINANCIAL REVIEW**
## _Overview_
The impact of the COVID-19 pandemic once again dominated the reporting period, as it had in 2019/20. As a result of COVID lockdowns, Paignton Zoo and Newquay Zoos were closed for 125 days during 2020/21, partially reopened in mid-April and returned to normal, albeit with enhanced COVID measure in place, at the start of July. Trading was significantly stronger than originally anticipated with the company recording a profit of £1.3 million compared to a deficit of £2.8 million (including the Living Coasts write down of £928k) in the 2019/20 reporting year.
Net Assets at year-end were £8 million, compared to £7.4 million in the previous year.
## _Going Concern_
The accounts have been prepared on a going concern basis. The Trustees feel that this is appropriate, as at the time of signing the accounts lockdown restrictions have been lifted, rollout of the COVID-19 vaccine in the UK has been going well and Paignton and Newquay Zoos have reopened to strong visitor numbers.
The zoo sites are predominantly outdoor attractions, which offer people a chance to reconnect with the natural world, and the growing awareness of conservation issues positions Wild Planet Trust in a strong position. Tourism agency projections are that visitor numbers to the South West in 2022 will be robust, and
Page 3
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021**
early data points to a continuing positive situation in 2023. Nevertheless our business planning is based on cautious and conservative forecasts and budgets.
The CBIL loan obtained in 2020 effectively replaced the cash lost during COVID closures. As part of its reserves policy, the Charity holds £1M cash in reserve in case of trading difficulties. Despite the challenges faced in 2020/21 the Charity continues to hold sufficient cash to meet this requirement with £8M available at year-end.
The Charity has a lease on the Living Coasts site which is currently empty following the closure in March 2020. The Trustees are monitoring the position with regard to this lease, which has a peppercorn rent. We are actively seeking to dispose of the site and, at present, the cost of managing the site in its current form is substantially less than the support that we have had to provide to cover the operating losses in recent years. In the short term therefore, SWEPL is in a better position than when the site was in operation.
In the circumstances, and given the resources available to the charity, the trustees consider that the going concern basis is appropriate.
## **RISKS AND PRINCIPAL UNCERTAINTIES**
The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems and procedures have been established to manage those risks. The review and monitoring process includes assessment of business risks and implementing appropriate risk management strategies, in particular through mitigation and insurance. Internal controls are aligned with Charity Commission requirements and guidelines.
Business and operational risks are reviewed by the Finance, Audit and Risk Committee and fully discussed at full board management meetings. Annual business plans are developed for trustee approval. The business plans incorporate estimated visitor numbers and revenue as well as maintenance and development plans. Business plan progress is monitored by the Operations Committee.
Risks are also mitigated through a comprehensive insurance programme, which includes an annual review to ensure adequate cover, and the maintenance of business continuity plans.
The principal risks currently identified include:
- Human or animal epidemics which necessitate the long term closure of the zoos with resulting loss of revenue.
- Reduction in visitor numbers to the zoos caused by changes in perception of zoos generally, or Wild Planet Trust zoos in particular.
- The impact of climate change on maintenance and additional expenditure for animal welfare.
- The principal uncertainties are:
- The wider economic environment and the extent to which visitor numbers will remain as robust as was the case in this reporting period.
- The effect of National Living Wage increases given that they are unknown and impact in-year financial planning.
## **PERFORMANCE PLANNING AND INDICATORS**
## _Planning_
Annual business plan objectives are set within the context of trustee-approved goals and priorities. The toplevel goal and priorities inform departmental priorities which are then used as one of the performancemonitoring metrics.
Page 4
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021**
The 21-22 organisational planning and performance goal is:
T _o accelerate the transformation programme whilst maintaining financial resilience in order to lay the groundwork for a memorable and successful centenary year in 2023._
The priorities are:
- _Improve the ability to take data-driven timely decisions through prioritised implementation of the digital first programme in order to sustain financial resilience through better informed cost-control processes and maximum ROI revenue-generation activities._
- _Develop an outcome-focused culture in order to improve operational efficiencies by encouraging the team to take ownership of problem-solving within a clearly communicated framework of priorities._
- _�(PEHG WKH 6LQJOH &RPSHOOLQJ 1DUUDWLYH µKHOSLQJ KDOW VSHFLHV GHFOLQH¶ WKURXJK WKH SKDVed implementation of the START programme in order to re-position WPT as a national leader on biodiversity issues._
The organisational top priority is to:
_Tell our story better._
The stated organisational goal and priorities drive the following baseline business plan activities:
- _Create botanic/animals parity of esteem._
- _Deliver substantial growth in education activities._
- _Prepare the plan for, and be ready to execute, Project 100 (the centenary celebrations)._
- _Design a new people strategy that improves talent development, conditions of service and succession planning._
_Performance Indicators_
Taking into account the unique challenges caused by the COVID pandemic and the principle uncertainties previously described, performance targets have been set at the conservative end of the spectrum and are based on modest increases on 2019 actual performance.
The principal KPIs for the year ended 31 October 2021 are as follows:
The contribution from trading represents the SWZEL profit as at 31/10/21, which will be distributed to the Charity (SWEPL) in 2022, prior to 31[st] July.
_2021 Key Performance Indicators_
**----- Start of picture text -----**
2021 Actual
2021 2021 Previous Year 2021 Actual
to Previous
Actual Target 2020 Actual to Target
Year
Total Visitors 526,227 565,271 376,831 -6.9% 39.6%
Paying Visitors 409,853 396,000 269,070 3.5% 52.3%
Total Education Visitors 8,710 0* 9,209 * -5.4%
Admissions Income £6,255,511 £4,974,132 £4,053,247 25.8% 54.3%
Education Visits £48,789 0* £38,930 * 25.3%
Contribution from Trading £972,542 £352,364 £149,769 176% 549.4%
**----- End of picture text -----**
*No target included due to Covid-19 and lockdowns
Page 5
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021**
## _2022 Targets_
|Admissions|£5,674,827|
|---|---|
|Education Visits|£135,750|
|Contribution from Trading|£685,816|
## **RESERVES**
It is the general policy of South West Environmental Parks Ltd (SWEPL) and its subsidiary charity, Living Coasts, to apply towards their charitable objectives as much cash as they reasonably can, to avoid accumulating excessive reserves. Where considered appropriate and being mindful not to overcommit the Charity, borrowings may be used to fund elements of significant capital projects.
In setting its reserves policy, the Charity takes account of its continuing financial commitments in terms of staffing and overheads, including the costs of maintaining the animal and plant collections and funding its charitable activities.
Following the consequences of COVID for the organisation, the trustees continue to review the reserves policy. At the year-end however, the reserves policy was that SWEPL will maintain minimum cash reserves of £1m available at all times. Such reserves would be sufficient for SWEPL and its subsidiary companies to operate without significant curtailment of their activities for a period of up to six weeks. Similarly, the trustees consider that unrestricted reserves at the end of any financial year not exceeding 100% of the total resources expended during the year could properly be regarded as both reasonable and justified.
At the year end, the SWEPL group held in excess of £8 million of cash including cash held to cover the annual trading cycle, the £1m reserves discussed above and funds available for future developments.
In order to guarantee that the business would have sufficient cash to operate as a going concern during the winter of 2020/21, SWEPL drew down a £3,000,000 government backed Coronavirus Business Interruption Loan in August 2020. Repayments started in March 2021 and the loan is due to be repaid by August 2026.
Page 6
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
South West Environmental Parks Ltd is a registered charity (Number 300923), governed by its Charity Commission Scheme (LT 306,622 A/3 dated 3 September 1991). It is an unincorporated association run by a board of trustees.
A skills audit of the existing Board is maintained with a target list of expertise and experience, which provides the criteria for future appointments. A recruitment procedure is in place to ensure that any nominees have the expertise and experience that will enhance and benefit the Board and its objectives. It has been used successfully. In accordance with the governing document, trustees are appointed to the Board by a majority vote of the existing trustees.
Training of trustees is reviewed against individual training needs and a full introduction and induction to the charity is given to new trustees upon appointment.
The Board meets regularly throughout the year to review strategy and performance and a number of subcommittees also meet on a regular basis to focus on specific areas. Whilst the trustees are responsible for strategy and policy issues, the day-to-day administration and management of the charity is delegated to a Chief Executive, who reports regularly to the Board.
By Order of the Board
**C E Malkin** Company Secretary Date:
Page 7
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 OCTOBER 2021**
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on its behalf by:
**C E Malkin** Company Secretary Date:
Page 8
## **SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **OPINION**
We have audited the financial statements of South West Environmental Parks Limited (the 'charitable Company') for the year ended 31 October 2021 which comprise the Statement of Financial Activities (incorporating income and expenditure account), the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable Company's affairs as at 31 October 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **CONCLUSIONS RELATING TO GOING CONCERN**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 9
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTH WEST ENVIRONMENTAL PARKS LIMITED (CONTINUED)**
## **OTHER INFORMATION**
The other information comprises the information included in the Trustees' Report and Financial Statements other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Trustees' Report and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of our knowledge and understanding of the charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable Company or to cease operations, or have no realistic alternative but to do so.
Page 10
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTH WEST ENVIRONMENTAL PARKS LIMITED (CONTINUED)**
## **AUDITORS' 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 Auditors' 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:
- We have considered the nature of the sector, control environment, and financial performance;
- We have considered the results of enquiries with management and the Trustees in relation to their own identification and assessment of the risks of irregularities within the Charity;
- We have reviewed the documentation of key processes and controls, and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation;
- We have obtained and reviewed the Charity’s documentation of their policies and procedures relating to: o Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations
- We have considered the matters discussed among the audit engagement team regarding now and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the Charity for fraud and identified the highest area of risk to be in relation to income recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls through the use of manual journals.
We have also obtained an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011, Charities SORP 2019, UK Companies Act and FRS102.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or avoid a material penalty. These included the Zoo Licensing Act, data protection legislation, health and safety regulations, and employment legislation.
Our procedures to respond to risks identified included the following:
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- Enquiring of management in relation to actual and potential claims or litigation;
- Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- Reviewing Board meeting minutes;
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.
Page 11
## **SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTH WEST ENVIRONMENTAL PARKS LIMITED (CONTINUED)**
We also communicated identified laws and regulations and potential fraud to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.
As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in the financial statements or non-compliance with regulation, will be detected by us. This risk increases the further removed compliance with a law or regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one-off error, as this may involve intentional concealment, forgery, collusion, omissions, or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
## **USE OF OUR REPORT**
This report is made solely to the charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable Company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Mark Munro FCA (Senior Statutory Auditor)**
for and on behalf of
**Bishop Fleming LLP** Chartered Accountants Statutory Auditors 2nd Floor Stratus House Emperor Way Exeter Business Park Exeter EX1 3QS
Date: 27th July 2022
Page 12
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OCTOBER 2021**
|**Note**
**INCOME FROM:**
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
8
Charitable activities
9
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE)**
Transfers between funds
22
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
Net movement in funds
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**funds**
**2021**
**£**
**421,051**
**7,897,109**
**9,932**
**151,027**
**17,200**
**8,496,319**
**16,318**
**7,894,994**
**7,911,312**
**585,007**
**(9,350)**
**575,657**
**5,983,539**
**575,657**
**6,559,196**|**Restricted**
**funds**
**2021**
**£**
**100,305**
**-**
**-**
**-**
**-**
**100,305**
**-**
**128,427**
**128,427**
**(28,122)**
**9,350**
**(18,772)**
**1,441,139**
**(18,772)**
**1,422,367**|**Total**
**funds**
**2021**
**£**
**521,356**
**7,897,109**
**9,932**
**151,027**
**17,200**
**8,596,624**
**16,318**
**8,023,421**
**8,039,739**
**556,885**
**-**
**556,885**
**7,424,678**
**556,885**
**7,981,563**|Total
funds
2020
£
1,031,982
5,771,272
33,027
630,081
27,616
7,493,978
17,466
9,507,329
9,524,795
(2,030,817)
-
(2,030,817)
9,455,495
(2,030,817)
7,424,678|
|---|---|---|---|---|
Page 13
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED REGISTERED NUMBER:00792877**
## **BALANCE SHEET AS AT 31 OCTOBER 2021**
|**Note**
**FIXED ASSETS**
Intangible assets
14
Tangible assets
15
Investments
16
**CURRENT ASSETS**
Stocks
17
Debtors
18
Cash at bank and in hand
26
Creditors: amounts falling due within one
year
19
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
Creditors: amounts falling due after more
than one year
20
**TOTAL NET ASSETS**|**122,644**
**466,643**
**6,433,323**
**7,022,610**
**(1,365,253)**|**2021**
**£**
**58,029**
**4,357,084**
**2**
**4,415,115**
**5,657,357**
**10,072,472**
**(2,090,909)**
**7,981,563**|118,429
748,093
5,767,436
6,633,958
(1,243,561)|2020
£
43,802
4,626,841
2
4,670,645
5,390,397
10,061,042
(2,636,364)
7,424,678|
|---|---|---|---|---|
Page 14
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED REGISTERED NUMBER:00792877**
**BALANCE SHEET (CONTINUED) AS AT 31 OCTOBER 2021**
|**Note**
**CAPITAL, RESERVES AND FUNDS**
Restricted funds
22
Unrestricted funds:
General funds
22
Called up share capital
Share premium account
Total unrestricted funds
22
**TOTAL FUNDS**|**6,525,558**
**10,000**
**23,638**|**2021**
**£**
**1,422,367**
**6,559,196**
**7,981,563**|5,949,901
10,000
23,638|2020
£
1,441,139
5,983,539|
|---|---|---|---|---|
|||||7,424,678|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on _________________________________________________ and signed on their behalf by:
## **S E Kings**
**R W J Ford**
The notes on pages 17 to 38 form part of these financial statements.
Page 15
## **SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2021**
|**CASH FLOWS FROM OPERATING ACTIVITIES**
Net cash (used in)/generated from operating activities
**CASH FLOWS FROM INVESTING ACTIVITIES**
Interest received
Purchase of tangible fixed assets
**NET CASH (USED IN) INVESTING ACTIVITIES**
**CASH FLOWS FROM FINANCING ACTIVITIES**
Cash inflows from new borrowing
Repayments of borrowing
**NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES**
**CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR**
Cash and cash equivalents at the beginning of the year
**CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR**
The notes on pages 17 to 38 form part of these financial statements|**2021**
**£**
**1,198,888**
**(1,258)**
**(168,107)**
**(169,365)**
**-**
**(363,636)**
**(363,636)**
**665,887**
**5,767,436**
**6,433,323**|2020
£
(1,301,094)
(10,714)
(460,825)
**(471,539)**
3,000,000
-
**3,000,000**
**1,227,367**
4,540,069
5,767,436|
|---|---|---|
Page 16
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **1. GENERAL INFORMATION**
The Charity (registered number 300923) is a charitable Company, limited by shares and registered in England and Wales (registered number 00792877). The registered office address is Totnes Road, Paignton, Devon, TQ4 7EU.
## **2. ACCOUNTING POLICIES**
## **2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
South West Environmental Parks 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.
Under the Companies Act 2006 the Company is exempt from producing consolidated accounts as it has been included in EEA group accounts of a larger group (s.400).
The parent entity in which consolidated statements are being produced is Wild Planet Trust. These statements are available from the Charity Commission.
## **2.2 GOING CONCERN**
The accounts have been prepared on the going concern basis. The Trustees have considered a period of at least 12 months from the date of approval of the financial statements, and have also assessed various business plans relating to the potential on-going impact of COVID on the operation of the parks. For further details, please see the Trustees' Report.
## **2.3 INCOME**
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 17
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.4 EXPENDITURE**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 GOVERNMENT GRANTS**
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.
## **2.6 INTEREST RECEIVABLE**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 INTANGIBLE ASSETS AND AMORTISATION**
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
The estimated useful lives are as follows:
Amortisation is provided on the following bases:
|Computer software|-|5|years|
|---|---|---|---|
|Goodwill|-|5|years|
Page 18
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.8 TANGIBLE FIXED ASSETS AND DEPRECIATION**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
- Leasehold property and 10 to 50 years improvements Motor vehicles - 5 years - Fixtures, fittings and equipment 5 to 10 years
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Financial Activities.
## **2.9 INVESTMENTS**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.10 STOCKS**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.11 DEBTORS**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.12 CASH AT BANK AND IN HAND**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 19
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **2. ACCOUNTING POLICIES (continued)**
## **2.13 LIABILITIES AND PROVISIONS**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
## **2.14 FINANCIAL INSTRUMENTS**
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.15 PENSIONS**
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
The assets of the scheme are held separately from those of the group and are independently administered.
## **2.16 FUND ACCOUNTING**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 20
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgement:
The useful life of the fixed assets is a key judgement.
Page 21
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **4. INCOME FROM DONATIONS AND LEGACIES**
|**Unrestricted**
**funds**
**2021**
**£**
Donations from Living Coasts
10,775
Donations
328,138
Government grants
82,138
421,051|**Restricted**
**funds**
**2021**
**£**
-
-
100,305
100,305|**Total**
**funds**
**2021**
**£**
**10,775**
**328,138**
**182,443**
**521,356**|
|---|---|---|
Government grant funding received relates to the Coronavirus Job Retention Scheme and business support grants awarded as a result of COVID-19.
|Donations
Government grants|Unrestricted
funds
2020
£
414,370
-
414,370|Restricted
funds
2020
£
-
617,612
617,612|Total
funds
2020
£
414,370
617,612
1,031,982|
|---|---|---|---|
## **5. INCOME FROM CHARITABLE ACTIVITIES**
|**Unrestricted**
**funds**
**2021**
**£**
Operation of Paignton Zoo
5,342,300
Operation of Newquay Zoo
2,070,269
Education
101,265
Field conservation and research
38,599
Charges to South West Zoo Enterprises Ltd
344,676
7,897,109|**Total**
**funds**
**2021**
**£**
**5,342,300**
**2,070,269**
**101,265**
**38,599**
**344,676**
**7,897,109**|Total
funds
2020
£
3,990,642
1,343,739
48,111
39,004
349,776
5,771,272|
|---|---|---|
Page 22
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **6. INCOME FROM OTHER TRADING ACTIVITIES**
## **Income from fundraising events**
|**Unrestricted**
**funds**
**2021**
**£**
Fundraising
9,932
Events
-
9,932|**Total**
**funds**
**2021**
**£**
**9,932**
**-**
**9,932**|Total
funds
2020
£
15,860
17,167
33,027|
|---|---|---|
## **7. INVESTMENT INCOME**
|**Unrestricted**
**funds**
**2021**
**£**
Distribution from South West Zoo Enterprises Limited
149,769
Interest receivable
1,258
151,027|**Total**
**funds**
**2021**
**£**
**149,769**
**1,258**
**151,027**|Total
funds
2020
£
619,367
10,714
630,081|
|---|---|---|
## **8. EXPENDITURE ON RAISING FUNDS**
## **FUNDRAISING TRADING EXPENSES**
|**Unrestricted**
**funds**
**2021**
**£**
Fundraising
3,498
Staff costs
12,820
16,318|**Total**
**funds**
**2021**
**£**
**3,498**
**12,820**
**16,318**|Total
funds
2020
£
4,358
13,108
17,466|
|---|---|---|
Page 23
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2021**
**£**
Operation of the Parks
7,584,797
Education
111,359
Conservation
299,143
COVID-19 Grant
(100,305)
7,894,994|**Restricted**
**funds**
**2021**
**£**
28,122
-
-
100,305
128,427|**Total**
**funds**
**2021**
**£**
**7,612,919**
**111,359**
**299,143**
**-**
**8,023,421**|
|---|---|---|
COVID-19 Grant expenditure relates to costs incurred against furlough claims. These costs were incurred across both support and direct costs.
|Operation of the Parks
Education
Conservation
COVID-19 Grant|Unrestricted
funds
2020
£
7,704,364
237,744
788,218
(617,612)
8,112,714|Restricted
funds
2020
£
777,003
-
-
617,612
1,394,615|Total
funds
2020
£
8,481,367
237,744
788,218
-
9,507,329|
|---|---|---|---|
## **10. ANALYSIS OF EXPENDITURE BY ACTIVITIES**
|Operation of the Parks
Education
Conservation|**Activities**
**undertaken**
**directly**
**2021**
**£**
3,331,866
111,359
299,143
3,742,368|**Support**
**costs**
**2021**
**£**
4,281,053
-
-
4,281,053|**Total**
**funds**
**2021**
**£**
**7,612,919**
**111,359**
**299,143**
**8,023,421**|
|---|---|---|---|
Page 24
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
|**10.**
**ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)**
Activities
undertaken
directly
2020
£
Operation of the Parks
3,803,168
Education
237,744
Conservation
788,218
4,829,130
**ANALYSIS OF SUPPORT COSTS**
**Operation**
**of the Parks**
**2021**
**£**
Staff costs
1,822,516
Establishment costs
980,378
Administration costs
342,034
Financial costs
259,010
Marketing
400,459
Depreciation
437,858
Amortisation
21,298
Governance
17,500
Impairment of assets
-
4,281,053
**11.**
**AUDITORS' REMUNERATION**
Fees payable to the Company's auditor for the audit of the Company's
annual accounts|Support
costs
2020
£
4,678,199
-
-
4,678,199
**Total**
**funds**
**2021**
**£**
**1,822,516**
**980,378**
**342,034**
**259,010**
**400,459**
**437,858**
**21,298**
**17,500**
**-**
**4,281,053**
**2021**
**£**
**8,250**|Total
funds
2020
£
8,481,367
237,744
788,218
9,507,329|
|---|---|---|
|||Total
funds
2020
£
1,702,038
885,325
240,556
270,836
465,567
344,781
64,786
8,500
695,810
4,678,199|
|||2020
£
8,000|
Page 25
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **12. STAFF COSTS**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2021**
**£**
**3,891,930**
**300,734**
**257,984**
**4,450,648**|2020
£
4,307,553
318,559
276,306|
|---|---|---|
|||4,902,418|
Included within wages and salaries are staff restructuring costs for the Company amounting to £60,000 (2020: £212,404).
The average number of persons employed by the Company during the year was as follows:
||**2021**|2020|
|---|---|---|
||**No.**|No.|
|Employees|**186**|198|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2021**|2020|
|---|---|---|---|
|||**No.**|No.|
|In the band £60,001|- £70,000|**1**|-|
|In the band £70,001|- £80,000|**1**|1|
The total amount of employee benefits (including employer pension contributions and employer National Insurance contributions) received by key management personnel was £395,278 (2020: £445,550). The group of which South West Environmental Parks Limited is a part of is managed on a unified basis. The key management personnel of the Company are remunerated by Wild Planet Trust in respect of their services to the group as a whole.
## **13. TRUSTEES' REMUNERATION AND EXPENSES**
During the year, no Trustees received any remuneration or other benefits (2020: £Nil).
During the year ended 31 October 2021, travel expenses totalling £780 were reimbursed or paid directly to 4 Trustees (2020: £150 to 3 Trustees).
Page 26
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **14. INTANGIBLE ASSETS**
|**COST**
At 1 November 2020
Additions
At 31 October 2021
**AMORTISATION**
At 1 November 2020
Charge for the year
At 31 October 2021
**NET BOOK VALUE**
At 31 October 2021
At 31 October 2020|**Computer**
**software**
**£**
**96,172**
**35,525**
**131,697**
**63,075**
**10,593**
**73,668**
**58,029**
33,097|**Goodwill**
**£**
**774,875**
**-**
**774,875**
**764,170**
**10,705**
**774,875**
**-**
10,705|**Total**
**£**
**871,047**
**35,525**
**906,572**|
|---|---|---|---|
||||**827,245**
**21,298**
**848,543**|
||||**58,029**|
||||43,802|
Page 27
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **15. TANGIBLE FIXED ASSETS**
|**COST OR VALUATION**
At 1 November 2020
Additions
At 31 October 2021
**DEPRECIATION**
At 1 November 2020
Charge for the year
At 31 October 2021
**NET BOOK VALUE**
At 31 October 2021
At 31 October 2020|**Long-term**
**leasehold**
**property**
**£**
**17,009,364**
**-**
**17,009,364**
**13,736,499**
**141,436**
**13,877,935**
**3,131,429**
3,272,865|**Motor**
**vehicles**
**£**
**366,531**
**80,289**
**446,820**
**295,814**
**32,921**
**328,735**
**118,085**
70,717|**Fixtures and**
**fittings**
**£**
**3,018,972**
**87,818**
**3,106,790**
**1,735,713**
**263,507**
**1,999,220**
**1,107,570**
1,283,259|**Total**
**£**
**20,394,867**
**168,107**
**20,562,974**|
|---|---|---|---|---|
|||||**15,768,026**
**437,864**
**16,205,890**|
|||||**4,357,084**|
|||||4,626,841|
The Company's leasehold buildings are held under leases granted by Wild Planet Trust, Torbay Council and Restormel Borough Council. The net book value of leasehold buildings as at 31 October 2021 comprises £1,863,362 (2020: £1,968,227) in respect of Paignton Zoo, £Nil (2020: £Nil) in respect of Living Coasts which was fully impaired in the prior year and £1,268,067 (2020: £1,304,638) in respect of Newquay Zoo.
Page 28
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **16. FIXED ASSET INVESTMENTS**
|**COST OR VALUATION**
At 1 November 2020
AT 31 OCTOBER 2021
**NET BOOK VALUE**
AT 31 OCTOBER 2021
AT 31 OCTOBER 2020|**Investments**
**in**
**subsidiary**
**companies**
**£**
**2**|
|---|---|
||**2**|
|||
||**2**|
||2|
Page 29
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **16. FIXED ASSET INVESTMENTS (CONTINUED)**
## **PRINCIPAL SUBSIDIARIES**
The following were subsidiary undertakings of the Company:
|**Names**|**Company**|**Charity**|**Registered office or principal**|**Principal activity**|**Holding**|
|---|---|---|---|---|---|
||**number**|**registration**|**place of business**|||
|||**number**||||
|South West Zoo Enterprises Limited|02494361|NA|Totnes Road, Paignton, Devon|Retail trading activities|100%|
|||||of the environmental||
|||||parks||
|Living Coasts|04620880|1099076|Totnes Road, Paignton, Devon|Operation of Living|100%|
|||||Coasts exhibit||
Page 30
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
|**17.**
**STOCKS**
Consumables
**18.**
**DEBTORS**
**DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments and accrued income
Tax recoverable
**19.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Bank overdrafts
Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
**Deferred income**
Deferred income at 1 November 2020
Resources deferred during the year
Amounts released from previous periods|**2021**
**£**
**122,644**
**2021**
**£**
**18,899**
**11,814**
**384,263**
**51,667**
**466,643**
**2021**
**£**
**337**
**545,455**
**202,721**
**77,960**
**33,039**
**505,741**
**1,365,253**
**2021**
**£**
**362,330**
**398,913**
**(362,330)**
**398,913**|2020
£
118,429
2020
£
13,421
63,666
638,439
32,567
748,093
2020
£
-
363,636
204,564
76,058
32,569
566,734
1,243,561
2020
£
497,817
362,330
(497,817)
362,330|
|---|---|---|
Deferred income relates to annual pass admission income relating to future periods.
Page 31
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Bank loans|**2,090,909**|2,636,364|
In the prior year, the Company entered into a loan agreement through the Coronavirus Business Interruption Loan scheme. Interest is charged at 1.94% above the base rate. The balance is repayable in monthly installments over five and half years.
The loan is secured with an unlimited debenture from South West Environmental Parks Limited, South West Zoo Enterprises Limited, Living Coasts and Wild Planet Trust; a first legal charge from Wild Planet Trust over the freehold land and buildings at Totnes Road, Paignton, Devon, TQ4 7EU; an omnibus guarantee and set off agreement among the Bank, South West Environmental Parks Limited, Wild Planet Trust and Living Coasts; and an all moneys guarantee from South West Zoo Enterprises Limited.
## **21. SHARE CAPITAL**
|||**2021**|2020|
|---|---|---|---|
|||**£**|£|
|Issued and fully paid ordinary shares of £1|each|**10,000**|10,000|
Page 32
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **22. STATEMENT OF FUNDS**
## **STATEMENT OF FUNDS - CURRENT YEAR**
|**UNRESTRICTED FUNDS**
General Funds
**RESTRICTED FUNDS**
ERDF Redevelopment Fund
Crocodile Swamp Fund
Solar PV Array Fund
Forest Schools Fund
BIAZA Fund
Coronavirus Job Retention
Scheme
**TOTAL OF FUNDS**|**Balance at 1**
**November**
**2020**
**£**
**5,983,539**
**781,805**
**650,000**
**4,126**
**324**
**4,884**
**-**
**1,441,139**
**7,424,678**|**Income**
**£**
**8,496,319**
**-**
**-**
**-**
**-**
**-**
**100,305**
**100,305**
**8,596,624**|**Expenditure**
**£**
**(7,911,312)**
**(26,059)**
**-**
**(2,063)**
**-**
**-**
**(100,305)**
**(128,427)**
**(8,039,739)**|**Transfers**
**in/out**
**£**
**(9,350)**
**-**
**-**
**-**
**-**
**9,350**
**-**
**9,350**
**-**|**Balance at**
**31 October**
**2021**
**£**
**6,559,196**|
|---|---|---|---|---|---|
||||||**755,746**
**650,000**
**2,063**
**324**
**14,234**
**-**
**1,422,367**|
||||||**7,981,563**|
## **Restricted funds**
_ERDF Redevelopment Fund and Crocodile Swamp Fund_ - This represents funding received for redevelopment of sites and exhibits at Paignton Zoo.
Other restricted amounts represent funds received for a specific purpose and can only be used under particular conditions.
Page 33
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
|**22.**
**STATEMENT OF FUNDS (CONTINUED)**
**STATEMENT OF FUNDS - PRIOR YEAR**
**UNRESTRICTED FUNDS**
General Funds
**RESTRICTED FUNDS**
ERDF Redevelopment Fund
Living Coasts Grants Fund
Crocodile Swamp Fund
Solar PV Array Fund
Forest Schools Fund
BIAZA Fund
Awards For All - Changing Places
Coronavirus Job Retention Scheme
**TOTAL OF FUNDS**|Balance at
1 November
2019
£
7,237,353
807,864
714,845
650,000
6,188
324
28,921
10,000
-
2,218,142
9,455,495|Income
£
6,876,366
-
-
-
-
-
-
-
617,612
617,612
7,493,978|Expenditure
£
(8,130,180)
(26,059)
(714,845)
-
(2,062)
-
(24,037)
(10,000)
(617,612)
(1,394,615)
(9,524,795)|Balance at
31 October
2020
£
5,983,539|
|---|---|---|---|---|
|||||781,805
-
650,000
4,126
324
4,884
-
-
1,441,139|
|||||7,424,678|
## **23. SUMMARY OF FUNDS SUMMARY OF FUNDS - CURRENT YEAR**
|General funds
Restricted funds|**Balance at 1**
**November**
**2020**
**£**
**5,983,539**
**1,441,139**
**7,424,678**|**Income**
**£**
**8,496,319**
**100,305**
**8,596,624**|**Expenditure**
**£**
**(7,911,312)**
**(128,427)**
**(8,039,739)**|**Transfers**
**in/out**
**£**
**(9,350)**
**9,350**
**-**|**Balance at**
**31 October**
**2021**
**£**
**6,559,196**
**1,422,367**
**7,981,563**|
|---|---|---|---|---|---|
Page 34
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **23. SUMMARY OF FUNDS (CONTINUED) SUMMARY OF FUNDS - PRIOR YEAR**
|General funds
Restricted funds|Balance at
1 November
2019
£
7,237,353
2,218,142
9,455,495|Income
£
6,876,366
617,612
7,493,978|Expenditure
£
(8,130,180)
(1,394,615)
(9,524,795)|Balance at
31 October
2020
£
5,983,539
1,441,139
7,424,678|
|---|---|---|---|---|
## **24. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
3,599,275
Intangible fixed assets
58,029
Fixed asset investments
2
Current assets
6,358,052
Creditors due within one year
(1,365,253)
Creditors due in more than one year
(2,090,909)
**TOTAL**
6,559,196|**Restricted**
**funds**
**2021**
**£**
757,809
-
-
664,558
-
-
1,422,367|**Total**
**funds**
**2021**
**£**
**4,357,084**
**58,029**
**2**
**7,022,610**
**(1,365,253)**
**(2,090,909)**
**7,981,563**|
|---|---|---|
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR**
|Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
**TOTAL**|Unrestricted
funds
2020
£
3,840,910
43,802
2
5,978,750
(1,243,561)
(2,636,364)
5,983,539|Restricted
funds
2020
£
785,931
-
-
655,208
-
-
1,441,139|Total
funds
2020
£
4,626,841
43,802
2
6,633,958
(1,243,561)
(2,636,364)
7,424,678|
|---|---|---|---|
Page 35
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
|**25.**
**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW**
**ACTIVITIES**
Net income/expenditure for the year (as per Statement of Financial
Activities)
**ADJUSTMENTS FOR:**
Depreciation charges
Amortisation charges
Interest receivable
(Increase) in stocks
Decrease/(increase) in debtors
(Decrease) in creditors
**NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES**
**26.**
**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Cash in hand
**TOTAL CASH AND CASH EQUIVALENTS**
**27.**
**ANALYSIS OF CHANGES IN NET DEBT**
**At 1**
**November**
**2020**
**£**
Cash at bank and in hand
**5,767,436**
Bank overdrafts repayable on demand
**-**
Debt due within 1 year
**(363,636)**
Debt due after 1 year
**(2,636,364)**
**2,767,436**|**FROM OPERATING**
**2021**
2020
**£**
£
**556,885**
(2,030,817)
**437,864**
1,040,591
**21,298**
64,786
**1,258**
10,714
**(4,215)**
(25,199)
**281,450**
(210,623)
**(95,652)**
(150,546)
**1,198,888**
(1,301,094)
**2021**
2020
**£**
£
**6,433,323**
5,767,436
**6,433,323**
5,767,436
**Cash flows**
**At 31**
**October**
**2021**
**£**
**£**
**665,887**
**6,433,323**
**(337)**
**(337)**
**(181,819)**
**(545,455)**
**545,455**
**(2,090,909)**
**1,029,186**
**3,796,622**|
|---|---|
Page 36
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **28. CONTINGENT LIABILITIES**
In 2005, the Company entered into a 125 year lease with The Council of the Borough of Torbay for land at Beacon Quay, Torquay. Until its closure in the previous financial year, this land was occupied by the Living Coasts Coastal Zoo.
Under the terms of the lease, the Company is obliged to pay only a peppercorn rent, however, is partially responsible for the repair and maintenance of the site, including a sea wall that borders it.
At the date of this report, the directors of the Company are exploring several potential options for the future use of the site, however, none has been agreed.
Given the length of the remaining lease, it is likely that at some point significant repairs will be required to the site, for which the Company is currently partially responsible. However, the timing and cost of these repairs cannot be reliably estimated, and the directors remain optimistic that the lease will be taken on by a new tenant. As such, no liability has been recognised in the financial statements in respect of this ongoing obligation.
A health and safety incident occurred at one of the parks in the year ending 31 October 2020, which resulted in an investigation being made. No resolution has been reached between the parties and the investigation into the incident is still on-going at the date of the audit report. However, it is possible that the Company will be subject to a financial penalty.
The Trustees are not able to assess the probability of any penalty that might arise, nor the probability of this taking place. As such, the Trustees have made no provision in the 2021 financial statements.
## **29. PENSION COMMITMENTS**
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £257,984 (2020: £276,306). £28,103 (2020: £30,024) were payable to the fund at the balance sheet date and are included in creditors.
Page 37
**SOUTH WEST ENVIRONMENTAL PARKS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021**
## **30. OPERATING LEASE COMMITMENTS**
At 31 October 2021 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**2021**
**£**
**4,562**
**4,562**
**8,619**
**17,743**|2020
£
2,244
2,244
5,049|
|---|---|---|
|||9,537|
The following lease payments have been recognised as an expense in the Statement of Financial Activities:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Operating lease rentals|**2,824**|2,244|
## **31. RELATED PARTY TRANSACTIONS**
As a wholly owned subsidiary undertaking of their ultimate parent, Wild Planet Trust, the Company has taken advantage of the exemption in section 33.1A of FRS 102 in not disclosing intra-group transactions where 100% of the voting rights are controlled within the group.
## **32. CONTROLLING PARTY**
The Company's parent undertaking and controlling party is its shareholder, Wild Planet Trust (charity number 306622). The objects of Wild Planet Trust are the advancement of scientific knowledge, education and the promotion of conservation. Its principal activities are the provision of grant to a range of conservation projects, the management of nature reserves for the benefit of wildlife, and the public and supporting the scientific, conservation and education work of the other charities within the group.
Group accounts for Wild Planet Trust are available from its principal place of business, Paignton Zoo, Totnes Road, Paignton, TQ4 7EU.
Page 38