www.igd.com THE INSTITUTE OF GROCERY DISTRIBUTION Annual Report and Accounts For the year ended 31st December 2020 Registered Number 105680 Charity Number 309939
The Institute of Grocery Distribution Report and Accounts For the year ended 310t Decembgr 2020 Contents Page Trustees, Report (including Strategic Report) Group Statement of Financial Activities statements of Financial Position 12 Group Statement of Cash Flows 13 Notes to the Accounts 14 Independent Auditor's Report 27 IGD Board of Truslees 30 IGD Senior Leadership Team 31
The Institute of Grocery Distribution Trustees, Report {including the Strategic Report) For the year ended 31st December 2020 The trustees present their report {including the Strategic Report) together with the financial statements for the year ended 31 st December 2020. The trustees have adopted the provisions of the Slalement of Recommended Practice for Accounting and Reporting by Charities (Charities SORP {FRS 1021 {Second edition- October 201911. The report and the financlal statements also compty with the requirements of the Companies Act 2006. Ob'ectives and activlties As a charity, we exist to upskill people working in or looking to join the food and consumer goods industry. We also manage initiatNes driven by research and best practice relats'ng to science. technology or economics in the food industry. Our charitable work is funded by the profits from our trading subsidiary. IGD servIs Limited, together with its vo overseas based subsidiaries. The three companies provide research and insight based commercial Services to the food ancl consumer go(xJs industry. We enable companies across the food and consumer goods industry lo work together collatorativety across four key areas of focus.. people, health, sustainability and economics. We seok to incfease the publ benefit we deliver every year by making a bigger impact on a larger number of people and companies. Ensuring our work dellver6 agalnst our obje¢tivgs When launching anything new, we check that it complies fully with the Memrandum and Articles of Association and we regularfy review all activities throughout the year. In these reviews we remind ourselves what we set out to achieve, what we have learnt, the publi¢ benefft delivered so far and the opportunities lo extend this. In doing so, we refer lo the Charity Commission's general guidance on public benefit. The trustees Consider that the charity h8s wmplied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. The trustees regularly consider and discuss how our existing and planned activities ¢ontribLtte to IGD'S charitable objectives and probe to ensure that resources are used efficiently and deliver a sab'sta¢tory turn. How work We are guided by a series of advisory groups. drawing expertise from our member companies and beyond, all under the oversight of our trustees. Full details of which can be found at www.igd.comlinduslryworkinggroups. Our 2020 charitable achlevements Summary 2020 has been an extraordinary year as we lived through a pandemic that has profoundly affected so many aspects of everyone's INes. The food an¢Y consumer goods industy has done a fantastic job, pulling together and Wor.ng hard to keep food and other essentials on the she5ves to protect the most vulnerable in our stxiety- We owe our thanks to all of the food heroes working across our industry- At IGD. our purpose is to drive change and make a tangible dIffenCe to society by uniting and inspiring the food and consumer goods industry. We do this through sharing knowledge, leading collaborations and by delivering great programmes on specific challenges. We use our unique ability to convene stakeholders across the whole food and consumer goods supply chain to influence change across four key area5.' people. health, sustainability and economics. With young people set to be among the worst affected by COVID-19 from an &rnployability perspective, during the summer we launched a virtual work experience training programme. bringing some of the industy's biggest tallerS and brands together to deliver a week of interactive learning and skills development. In addition, we have continued to develop our free leaming offer to ensure its relevance in today's world. with the aim of championing lifelong leaming within our industy.
The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For Ihp ygar ended 31•1 December 2020 Summary (continued) Through our work on sustsinability, we continued lo champion the Food Waste Reduction Roadmap, with signatories who publicly reported data achieving a 17°h year on year reduction in food waste. We also brought together key players along the redistribution SUpY chain to align on a joint ambition to increase the redistribution of food surplus. We helped the industry deliver 22,000 pallets of food to charities and food banks through our COVID-19 emergency appeal. As part of our focus on health we have an ambition to encourage more people to adopt a healthy and sustainable diet and we published Appets"te for Change, the outcomes of our behaviour change research, which we plan to build on in 2021. Through our economic analysis, and engagement with governmen( we aim lo help all food and consumer goods businesses to make well informed decisions, in the interests of society- This includes supporting them lo address any immediate risks lo the food supply chain. Over the last 12 months we've helped the industry to rnanage the challenges of COVID-19, and to ppare for the end of the transition period with the EU, ? work5tream that will continue apa as we head into 2021. None of the above would be possible wilhout the expertise and support of our industry advisory groups, member companies, volunteers, customers and policy rnakers and of course, the learn here at IGD. who are passionate about creating a tangible difference. All of the funding for our swial impact work is derived from IGD'S trading subsidiary, and we are genuinely grateful lo businesses for their fantastic 5UPPOrt and investment in our commercial insight and expertise. We have an ambitious programme of work planned for 2021. including expallding the scale of our new virtual wort( experience programme, refocusing our efforts on inclusion and diversity and bringing the industry logelher to drive collaborative action on food redistribution. As an organisalion. we strive to create inclusive partneiships and make a tangible differen by addressing common issues which are relevant to society, business and the individual. People We focus on giving young people opportunities to devek)p their employability and life skills and on building the knowledge and skills of food and conSUr goods industry colleagues, so that we foster an incluswe and Pfoduclive workforce. We quickly adapted our free leaming resources, so that they continue lo support industry colleagues throughout the COVID-19 pandernic. Allogelher, we have provided 11.000 free leaming hours, through videos, webinars and our other online resources. All of these are available for industry colleagues to access at any time. to suit their needs. This has been incredibly well received, with learner satisfaction feedback standing at an impressive 85Vo. Our Fast Track programme, specialty designed lo support people who have recently joined the industry, has Continued to expand significantly, with over 1,300 people from 250 companies registering lo take part. We have developed new conlenl around 'buitding a digital mindsef and 360 learners from over 210 companies have already benefited from this structured leaming joumey. Over 200 people took part in our unKiue talent programmes, sponsored by our Supply Chain Leaders Fowm, designed to help supply chain professionals take the next step in their careers. Through our employability programme we deliver nationwide Workshops in secondary schools, connecting students with industry professionals so that they can hear about the dwerse range of careers available in the food and consumer goods industry and learn about employability skills. We have continued our support for students and teachers working remotely by providing online workshops and free resources. We have also delivered weeks of virtual work experience designed lo help young job seekers build their employability ski115 and to undelstand the opwrtunities available in our industry. in the context of rising youth unemployment. Overall. we helped 6,000 young people in 2020, th the support of 500 volunteers from 50 companies and an amazing 93Yo of young people said they felt beller prepad for the Wofld of work as a result of taking part in these IGD initiatives. Following the kun¢h of our report on Diversity & Inclusion in Grocery at the end of 2019, we've continued to champion this agenda throughout all of our activities. We are actively encouraging companies to share their experiences so that we can ac¢elerate the adoption of best practice. To facilitate this, we organised an online event for HR professionals in December, with the support of our HR Leaders Forum. Our priority for 2021 is lo scale up all our people programmes so that we can help Th)re people lo develop their skills. We will expand the number of virtual work experience opportunities we offer to unemployed people and we will be launching a new programme, specifically designed to support new and aspiring line managers in our industry.
The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For the ygar ended 3161 December 2020 Hgalth Our ambits'on is to make healthy and sustainable diets easy for everyone by leading industry collaborations and building greater knowledge of what really works. Through ground-breaking research, we are focusing our efforts on championing a shift towards healthier and more sustainable diets. as we see this as a key lever to address both the obesity crisis and climate change. Our first slep was to launch our Appekn'te for Change report eadier this year, outlining the key opportunities to shift people's behaviour and also recommending next steps to help businesses to act. We Continued lo build our evidence base for this throughout the year, recognising the sigrsificant changes in consumption in the wake of the pandemic. We've partnered with experts in behavioural science. using innovative research techniques to identify acb'onable inShtS and we've been sharing our findings widely-, 1.000 organisations have downloaded our reports or attended our unique webinar5. We are now leading an industy-wide c081ilion that will test behaviour change inteentionS in real lrfe settings. Our aim is to help lo identify practical inleNentions that can be scaled up and then share these widely. 18 leading retailers, manufacturers and foodservice businesses are supporting this initiative and we are working closely with other organisalions. such as leading academics, the Behavioural Insights Team. the British Nutrition Foundation, the Food Foundation and the Consumer Goods Fowm, to join all of the dots and accelerate progress. We are in regular dialogue with government OffialS lo ensure that our work is aligned with an evolving policy agenda. For example, senior offiuals from the Department of Health and Social Care mel with our Nulritionisl Group to discuss the new obesity strategy and Tamsin Cooper. the leading civil seNanl on the National Food Strategy. met with our Technical Leaders Forum. Via our free online tools and resources, we continue to help and encourage more companies to refomiulale their products to be healthier by sharing our free tools and insights. Our online resource of practical guides, case studies and free ¢on5umer insights had over 22,000 visits this year, twice as many as the previous year. Our nutrition and behaviour change experts led free webinars which were attended by some 500 people from 270 organisations. We've also been proactwe in sharing our consumer insighl on attitude5 to health and nutrition by contributing to over SO industy events and briefings with government departments. And, we reach over 5,400 people who subscribe to our monthly neWstter of free articles and insights. Our top priorty for 2021 is to mobilise the industy to help shift consumer behaviour towards healthier and more sustainable diets. We are preparing to launch new online resources for businesses and to lest the impact of specific behaviour change interventions in real life settings. We will conts'nue to make our ffindings widely available and work to mobilise businesses to implement them. Sustalnablllty Our priorities are lo champion food waste reduction and food redistribution, and to mobilise industry and critical Stakeholders lo develop sustainable packaging systems for food and consumer goods products. In a wodd first. IGD and VVRAP united to launch the Food Waste Reduction Roadmap in September 2018, to help food businesses measure waste more consistently and give them*lves a target for reduction. Two years on, 210 UK food businesses have already committed lo target, measure and act on food waste, representing more than hall of the UK food industry by turnover_ The latest comparable data shows a 17°/ty reduction in food waste for participating businesses who publicty reported data. This equates lo a saving of over £300m of f(JJd1180,000 tonnes). In the Autumn, to find ways lo redistribute more food surplus, we launthed a new initiative to shine a light on food surplus redistribution and convene the stakeholders involved. We hosted a roundlable, in collaboration with Ben Elliot, the UK Government's Food Surplus and Waste Champion, WRAP and the Department for Environment, Food & Rural Affairs (Defral, which led to a commitment from all involved to accelerate progress. February 2020 saw the launch of our new workstream on sustainable packaging systems. We organised a highly successful evenL attended by 70 delegates across the packaging value chain and we also launched new, free resources for the industy. We have now taken the lead in bringing businesses and critical stakeholders together lo create a joint vision for sustainable packaging systems to 2030 and lo mobilise the industry behind a united direction of travel. The first Stage was to facilitate systems thinking workshops that will create a draft vision. ready to publish in the first half of 2021. We have developed new, free. online resources for businesses, to help them understand key issues related to ¢limate change and biodiversity loss. For example, we published a report on the implications of the pandemic on the sustainability agenda, to help companies prepare their response. Through our Technical Leaders Forum, we invited expert5 to discuss
The Institute of Grocery Distribution Trustees, Report (including the Strategic Reportl (continued) st For the year ended 31 Decomber 2020 Sustslnablllty (contlnued key challenges, such as the soy supply chain and net zero targets. and we also published a summary on our website to enable more companies to understand these issues. Our focus for 2021 is to make progress on our key workstreams and continue to build our online resources. We also want to capilalise on the COP26 Conference in Glasgow to encourage more people. from more businesses, to take action, highlighting the practical steps that businesses Gan take. Economlc8 We supwrt better strategic planning and decision making. for the benefit of consumers, through our economic anatysis and engagement with policy makers. COVID-19 brought about the biggest challenge to food supply for a generation, requiring greater levels of collal)oration and closer relationships with govemment than ever before. In March. at the height of the pandemic, we helped Defra establish thr Food Resilience Industy Forum, which brings together key industy contacts and officials from across government departments to share intelligence and address issues. We have parbcipated in this forum throughout 2020 to help tackle the challenges of COVID-19 and plan for the end of the transition period with the EU. Alongside this, we have continued lo participate in a variety of forurns bringing together industry bodies, goveinmenl departments and olheT experts lo share Intelligen and our relevant research. These include the Department for Transport's Road Haulage Roundlable, the Defra Food Chain Emergency Liaison Group, Defra's Retailer Forum, and the Food and Drink Industry Roundtable. convened by the Food and Drink Federation. We worked closely with Defra and our extensive industry nelwork to initiate emergency parcels lor the clinically extremely vulnerable, as part of the Govemment's National Shielding Programme. Vve also put out a raltying call lo industry to safeguard a consistent suppty to food banks, ensuring some of the most vulnerable people in our society did not go without during the crisis. Through the donath'ons made via IGD to our food redislribution partners, and through Defra's follow-up fund, our industry was able to suppty more than 22.000 pallets to charities and food banks, effectively meeting the original target identified at the start of the pandemic. This made a tangible difference, by serving the needs of those who fety so heavily on food banks for their daily food essentials. Throughout the pandemic, we have developed new ways of supporting the wider industy for the benefit of consumers. All of IGD'S unique research and insights, gathered through engagement with government and industry leaders. in addition to our economic anatysis and shopper data, were made freely available to 811 those who needed it. Our new economics bulletin has over 2,600 subscribers and is providing relevant and timely economic and political news. including the latest on COVID-19 and our relationship with the EU. Through our calls with industry leaders and through our working group meetings, we are regularfy exploring the big picture issues for the food and consumer goods industry that will shape the strategic direction of these businesses. This is supplemented by our deep-dive webinars, which in 2020 focused on planning for the end of the transition penod and have been very positively received. In addition. we continue to act as a key contributoi lo the EU Exit Food Hub, helping food businesses of all svzes prepare for changes in January 2021. In 2020. IGD helped mole than 800 organisalions prepare for the UK'S departure from the EU. In 2021, we will continue to provide noMiC insight, tracking the impact of COVID-19 and 8ving the EU, to undeTStand what it means for the food and consumer goods sector. to manage the impacts and protect consumers. We also plan to help industry leaders to look forward, providing insight on other relevant topics such as industy prixluctivity. We will also develop our understanding of new economic models to foster an industry that recognises and demonstrates the value of all types of capital - manufactured, financial, human, social and natural.
The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (contlnued) For the year ended 31bt December 2020 Financial review The source of funding for our charitable activities is profit from our wholly owned trading subsidiary, IGD SeTvices Ltd together with its Iwo overseas subsidiaries. Following the impact of the global Covid-19 pandemic, we quickly migrated our research and content to reflect the new trading environment. Initially we helped our Customers to adjust lo the new trading dynamics, before migrating to more fvture focused insights. As a result, both our Online Insight Services and Membership revenue were up 2¥0 on the previous year. However, our Events and Solutions business were negatively impacted by the restrictions surrounding face to face gatherings and travel. Although virtual allernalwes were success11Y introduced, given the disruption caused by the pandemic, it took lime before the industry was ready to migrale to the new offerings. As a result, total trading revenue was down 230A to £13.1 m. We quickly adjusted our cost base which, as covered in the People al IGD section on page 6, s8dty resulted in a number of redundancie5 which helped to mitigate the reduction in revenue_ The operating profrt of the trading sub5idiarie5 was £3.4m down 24% on 2019 after expenditure of£9.9m (2019.. 12.7m). Expenditure on charitable activities was protected but at £3.6m was down 7% on 2019 levels due to a reduction in face lo face actNIty. The net deficit for the year was £0.2m, compared to a £0.6m surplus in 2019. The closing financial position of the Group remains largely in line with 2019 with cash and short-temi bank deposits only falling £0.1m trom 2019 despite the fall in trading revenue. Group reserves The trustees have set a reseNes policy which requires that reserves be maintained at a level which provides financial stability and ensures that IGD'S charitable activilies could continue duTing a period of unforeseen difficulty and that a proportion of reserves be maintained in a readity realisable fomi {°free reseNes"l. The trustees consider free reserves to be the amount of reseNes that are easily ¢onverted into cash should the need arise,. they exclude unrestricted ndS of £2.4m tied up in fixed assets. The trustees assess the reserves policy on an annual basis and have determined that IGD should review the Pevel of reserves in conjun¢tion with IGD'S business plan and its requirement for investment in the future, considering the risks associated with its income stream. As a guide the level of free reserves should be within the range of 3 to 6 months of planned expenditure, and 1 to 2 years of the level of the expected annual gift aid payment from its trading subsidiary, re¢Lwnising that this is the only source of significant income. At 31st December 2020. free reseNes Itolal non-reslricled feserves less fixed assets) were £7.9m12019.. £7.9ml, which equates lo 6.6 months of planned expenditure and 2.6 times the 2020 gift aid paymenl which is marginally ahead of the policy approved by the Board, but given the high level of economic uncertainty. the Board of Trustees are comfortable with the position. The Board considers this to be an appropriate level of cover and the reserves will ensure that further investment can be made in IGD'S charitable programmes and in capital investment lo underpin IGD'S long-term plans. Princi al risks and uncertainties The risks the tharity faces are reviewed as part of our annual business planning cycle. Risks are prrItISed by reviewing the potential impact, together with the likelihood of them txcurring. Mitigating actions are reviewed with owners assigned to those actions. The risk register is reviewed on a regular basis and updated as appropriate and the trustees are provided with uplates on major risks by exception at regular meetings. After taken into account the mltigating controls in place. the following risks, many of which are intedinked. have been assessed to be the major ongoing risks which could impact IGD- Keeping employees safe during the Covid-19 pandemic Ensuring IGD remains relevant and retains the support of its stskeholders Reduction of funds from IGD'S trading subsidiary The impact of Covid-19 on both the industry and IGD'S activities Damage to IGD'S standing and reputation Infomation security breach Econom and geopolitical uncertainty including the end of the EU exit transition period IGD content or event being used to facilitate a breach of competrtion law
The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For the yoar gndfjd 31$t December 2020 Princi al risks and uncertainties continued The key action lo mitigate external risks is constant monitoring. The annual business planning cycle reviews how the exlemal environment is changing, and these changes are wnsidered in our decision-making and investment planning process. We use our advisory groups to s18y Close to the industry and, when launching new activities, we check that the activities fully comply with the Memorandum of Articles and we fully review the effectiveness of our programmes to ensure we are investing resour appropriately. The business planning cycle reviews every element of our Ir8ding actniitEs lo ensure that they are still relevant and appropriate for the needs of our customers. Financial performance is reviewed on a weekly basis and a revised f0caSt for the financial year is completed quarterly so that mitigatsng 8clions can be tsken if perf0mnCe is off plan. Procedures have been set lo minimise the risk to our standing and reputation. This includes ensuring staff are appropriately inducted and trained. Policies, including IT security, crtses management and ¢ompetilion law, are in place and contingency plans are in place to minimise the impact in the unlikely event an incident occurs. Subsidia com anies IGD Services Limited is a wholly owned trading subsidiary company of IGD. The aim of this company is to provide sources of funding for our charitable activities. IGD Services Limited has three wholly owned subsidiary companies. IGD Selvices {Canada) Inc. IGD SeIs (Singapore) Pte. Ltd and IGD Trading Limited lincorporaled in 2019). All three share the aim of providing funding our charitable activities. IGD Trading Limited was incorporated as a company limited by guarantee in the UK in July 2019 and has not traded. Our trading subsidi3ries are trusted pathers to the industry providing unrivalled insight and foresight on the food and onsumer good industry. We give our customers a better understanding of how to unlock success and where our industry is going. Our global insight enables us to deliver unique commercial knowledge and capabilities. We make a difference by gNing our customers the ability to meet everyday challenges and adapt to changing futures. Our Online Insight Services provide international news, searCh and forward thinking so that our customers can get a deeper understanding of industy- Our events portfol brings people together across the industy allowing attendees to gain a deeper understanding of themes impacting their business. Via IGD Solutions our customers Can gain access to our extensive expertise to get the specific business solutions or training they require. 2020 trading was impacted by the global Covld-19 pandemic as restrictions on face-tlaCe gatherings and travel affected some areas of our portfolio. A large proportion of our offering was already online based. which pul us in strong position, however we had lo cancel all physical events and our IGD Solutions was impacted by the inability to travel plus the uncertainty which our customers foLJnd themselves in. Our Solutions business giadually started to recover in the second half of the year as virtual interactions became the nomi and we also successfully delivered virtual events in the second half of the year. We plan to move forward with a blended model into the fvlure. Peo le at IGD People at IGD are pivotal in all we do. We rely on their knowledge, skills, intellectual rigour and passion for the food and grocery industry. Through our pOIleS, practices and remuneration we aim to be a fair employer. Everyone at IGD can pursue stretching goals and develop rewarding careers. In such a competitive and fast-changing world, we continually invest in our people. In 2020 the fuS was keeping our colleagues safe in the pandemic. both frDm a physuS and mental wellbeing perspective. We followed the government guidan closely and adopted our working practices quickly to allow our colleagues to work safely and pioduclNely at home. The offKe was adapted to comply with government and best practice guidance and was opened lor those who wanted lo use it as and when govemment guidance allowed. By the end of the year it was fully closed. We increased the level of communication and ran virtual briefing sessions throughout the year to ensure everyone stayed connected. In addition, during 2020, we came together to develop a new Purpose, Brand and Values which went live in January 2021. A new behaviours framework was developed which will be rolied-out
The Institute of Grocery Distrlbution Trustees, Report (including the Strategic Report) (continued) For the year ended 31bt December 2020 Peo le at IGD continued throughout 2021. We also delivered a series of Wellbeing and Resilience workshops to help colleagues through the pandemic. Given the Impact the pandemic had on some of our trading activities and how we used the office. we had to adjust our base during the year. Sadly, this resulted in 18 colleagues being made redundant. We fvlly followed best practs'ce as regards consultation with the majority of the consultation undertaken prior to Ihe Summer with most of those impacted leaving IGD in the third quarter. Our sixth annual Your Say staff survey achieved a response rate of 96Yo193Yv LYI. Despite the redundancy programme earlier in the year, the engagement score was up 4 on the previous year at 77 and 5 ahead of the extemal benchmark. The Your Say Forum continues lo provide an effective way for staff to voice their opinions and has been instrumental in understanding what is important to the team in tems of Iheir wellbeing and engagement with IGD. Environmental res onsibili The biggest positive impact we make is via our charitable programmes which include workn'ng with the food and grocery on sustainability and waste. However, we are also conscious of our own activities and impact on the environment and we pkgn to review and implement a new environmental responsibility plan in 2021. Structure overnance and mana ement IGD is a registered charity (registration number 3099391 and is constituted as a company registered in England and limited by guarantee Iregislrab'on number 1056801. Our objeGts and powers are set out in our Memorandum and Articles of Association. The Board of Trustees is responsible for governing the charity. The trustees retire after up to seven years, service. IGD is managed by a senior leadership team and the Chief Executive Officer reports to the hsteeS. The members of the senior leadership team are listed on page 31. The Nominations Committee oversees the Board's (x)mposition making recommendations to the Board of Trustees in the light of specific criteria and the needs crealed by retirements. Trustee appointments are based on the need for the Board lo have the skills and experience from across the supply chain. and providing the appropriate oversight and scrutiny, govemance and leadefship to IGD in pursuit of its strategies to fulfil its charitable purpose. Al trustee5 undertake an induction programme lo ensure they understand the activities of the charity and their role as a Iru5tee. We have an online document store providing trustees with instant acce&9 to all relevant resources including policEs, minutes and governing documents. Trustees are also appraised annually. The Board of Trustees have adopted a formal schedule of matters reserved for the Board and this is reviewed regularly. The Audit Committee. which is a Comm5tlèe of the Board of Trustees. provides oversight of financial reporting, risk and financial control matters. The Remuneration Committee, which is a Committee of the Board of Twstees, is responsible for overseeing Ihe remuneration for the Chief Executs've and senior leadership team al IGD. The Board of Trustees also has a SuccvJsion Committee which consKlers succession planning for the Chief Executive Officer. Trustees consider the Charity Govemance Code and use it as a tool for deveh)ping best practice to ensu that decisions are grounded in gocd governance. IGD rewards appropriately to attract and retain high calibre indNiduals who have the potential to grow and develop. We also recognise and reward high pertOrrnan so that our standards and values are never compromised. This requires a flexible approach to position our packages competits'vely against a mix of comparators, bul primarily against the industy we represent and recruit from. I packages are benchmarked to provide assurance that reward packages are fair and sel at the level appropriate for the responsibility of each role. Salaries are determined on appointment depending on the relevant external market for the skills and experience required and are reviewed each year considering the exteTnal market (including general pay trends), IGD perforrnan and affordability. All pay and Ixjnus proposals for the Chief Executive and the senior leadership team are approved by the Remuneration Committee.
The Institute of Grocery Distribution Trustees, Report (including the Strateglc Report) (continued) For the year ended 31" December 2020 Fundraisin ststement Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising actNlties. Although we do not undertake any fundraising from the general public. the legislation defines fund raising as 'soliciting or otherwise procuTing nK)ney or other property for charitable PUTposes." Such amounts re1vable would be presented In our accounts ?s'voluntary income. should we receive any and would include legacies and grants. The charity is not bound by 8ny undertaking to be bound by any regulatory scheme and the charity does not consider it necessary to comply wrth any voluntary code of practi as it does not undertake fundraising from the general public. Goin Concern In assessing the impact of COVID-19 on IGD. the trustees have considered all the matters described in the Trustees. Report, including the group's operations, the impact on trading within the subsidiary companies and our charitable ackn'vities. In particular, in order to support the trustees, assessment of the suslainabilty of the group's actwilies. management has piepared monthly cash-fiow forecasts based on dtfferent scenarios arising from the impact of COVID- 19. The majorty of IGD'S revenue is contracted annually and invoiced upfront, therefore the group has good visibilty of its fr>rward revenues giving rt time to adjust the cost base accordingly should il be necessary, as il did during 2020. However, to provide assurance. a 'worst case. scenario was completed which assumed a 25Yo reduction in revenue vs budgel115% reductson in 2021 to reflect that around a third of income was already contracted by the start of the yearl. This worst case SnariO gave assurance that cash reserves would remain F)OSitive for over three years with minimal related cost reductions. As at the date of signing, the trustees are confident that the group will be able to maintain liquidity for a period of at least one year from that dale and will therefore be able to continue to trade as a going concern. Statement of trustees, res onsibilities The names of the trustees who have 2¢ted in the year are given on page 30. The trustees are responsible for preparing the trustees, annu81 report, includillg the strategic reporL and the financial statements in accordance with applicable law and United Kingdom Accounling Standards {Unite(l Kingdom Generally Accepted Accounting Pra¢ti¢e). Cornpany law requires the trustees lo prepare financial statements for each financial year that give a true and fair view of the stsle of affairs ofthe group and the parent charity and of the incoming resources and application of resources, including the nel income or expenditure, of the group for the year. In preparing those financial statements the trustees are required select suitable accounting policies and then appty them consistenY' observe the methods and principles in the Chanties SORP-, make judgements and estimates that are reasonab and pnJdent'. slate whether applicable accounting Standards have been folEowed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going coni*rn basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the financial position of the group and the parent charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also reswnsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as each of the trustees is aware at the time the report is approved-. there is no relevant audit infonnation of which the company's auditors are unaware- and the trustees have taken all steps that Ihey ought to have tsken lo make themselves aware of any relevant audit information and to establish that Ihe auditotE are aware of that inft)rmation.
The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For the year ended 31•t December 2020 al and Administrative Infomiation List of Advisors to IGD Audltorn: BDO LLP 55 Baker Street London W1U7EU Bankers: HSBC 60 Queen Victoria Street London EC4N 4TR The Co-operative Bank 3-7 Market StreeL Watford. WD18 OPE CAF Bank 25 Kings Hill Avenue Kings Hill Wesl Malling Kent. ME19 4JQ Lloyds Bank PIC- Treasury Faryners House 25 Monument Street London EC3R 8BQ Solicitorn: Stone King Boundary House 91 Charterhouse Street London EC1M 6HR Slaughter & May 1 Bunhill Row London. EC1Y 8YY Pension Scheme Advisors: One Employee Benefits Sunfield Busines5 Park New Mill Road Finchampstead RG40 4QT Principal Office Address: IGD Grange Lane Letchmore Heath Wattord VVD25 8GD Company registration Thumr: 105680 Charty reglstratlon number: 309939
The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For thè year ènded 31 Dgcgmbgr 2020 Directors, report The TTUStees' Report incorporates inform3tion required in the Directors. Report for the company under the Companies Act 2006. Auditops A resolution for the reappointment of BDO LLP will be proposed at the forthcoming Annual General Meeting. Tru5tg95 Report {Includlng the Strateglc Report) approved on bphalf of the Board of Trustees: Jill Ross Chaiiman 30 June 2021 10
The Institute of Grocery Distribution Group Statement of Financial Actlvlties (Incorporating an income and expenditure account) For the year ended 311l December 2020 Not•s Total (General Funds) Total (General Funds) 2020 2019 Income and endowments from: Charitable activities Tradiw activities 13,113,115 17.139,351 other income received 114,617 Interest recÈlvable TOTAL 13.263.970 17,199,592 nditure on.. Raising funds 7a 19,866,127) {12,724,3981 Charitable activtbes 7b 3.613,075 3 892 333 TOTAL (13.479.202) {16.616,7311 Net lexpenditurn)fincomo {215,232) 582,861 Taxation (4.786) {23.9231 {Lossllgain on revaluation of overseas Subsidiarfes 1813) 24.727 Net movement In funds 1220.8311 583,665 Reconciliation of funds: Total funds brought fomard 10.492 778 9.909 113 Total funds carrled fonvard 90 10.271947 10 492778 The notes on pages 14 to 26 fonn part of these accwnts. All the above results are derived from continuing activities. There are no other recognised gains or losses other than thosè slated above.
The Institute of Grocery Distribution Statement of Financial Position 31It December 2020 Company Number 105680 GROUP COMPANY Notes 2020 2019 2020 2019 FIXED ASSETS Intangible assets Tangible assets Investments 10 10 67,522 2,302,817 176,694 2.450.766 1,984,980 300 000 2,284.980 2.032,585 300,000 2,332.585 2,370,339 2,627,460 CURRENT ASSErs Debtors Short-temi bank tjeposils Cash at bank and in hand 12 3.163.096 4.106,296 8 264 622 3,059,456 4,058,208 8 458 224 4.560.060 7.840,522 3 972 872 15,534.014 15.575.888 8.532,932 9,767,806 Creditors: Amounts falling du8 vAthln one year 13a 17,613.168} 17.699.320) 1553,0611 11,302,351) Nol current assets 7 920 846 7.876.568 7.979.871 Total assgts less CUbTOnt Ilabllfties 10,291,185 10,504,028 10.264.851 10.798,040 Crgdltors: Amounts falllng due after more than one yoar 13b 119.2381 111,2501 Net assets 10 271947 10 492 778 10 264 851 10798040 The funds of the charlty: Unrestricted fund5 Revaluation reserve 8,913.462 1,356,485 9,114,000 1,378,778 8,906,366 1,358,485 9.419.262 1.378.778 Total charfty funds 10 271947 10492778 10 264851 10798 040 The Statement of Financial Actbvities for the year ended 31 Dember 2020 for the parent charitable company only was a deficit of £533.189 {2019'. surplus of £198,030). Approved and authorised for issue by the Board of Trustees on 30 June 2021 and signed on its behalf by.. Colin Moss- Trustee and Chair of Audit Committee The notes on pages 14 to 26 form part of these accounts. 12
The Institute of Grocery Distribution Group Ststement of Cash Flows For the year ended 31*t December 2020 Notes 2020 2019 Net cash {used byllgenerated from operatlng actlvltles 14 1108,1521 1,462,030 Cash flows from investing activities: Interest received Purchase of intanglble fixed assets Purchase of tangible fixed assets Proceeds from the sale of tangible fixed assets 36,238 120.2511 {53.3491 60,241 11,3751 {191,313) Net cash from Inveyting activities 137,362} 1132.447) Cash flows from flnanclng actlvltles Transfers to short-term bank depossls 148,088) (32.208) Net $h used in financing activlti 148,088) (32,2081 Changg in cash and cash equlvalents 193602 16 1.297,375 Cash and cash 8qulvalonts atthe bgglnnlng of the year 8.468.224 7.160.849 Cash and cash equlvalents at the end of the year 8.264 622 8 458 224 The notes on pages 14 to 26 fomi part of these accwnls. IGD has taken advantage of the exemption under FRS102 not to prepare a statement of Cash flows for the parent company. 13
The Institute of Grocery Distribution Notes to the financial statements For the ygar gndod 31" December 2020 1. Constitution IGD 1$ 2 ¢ompany limited by guarantee and not having a share capital. In the event of a winding up, the members (who are the trustees) each have a maximum liability of enty-fve pence. 2. Accountlng Pollcles Basls of Accounts The financial slalements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in aceordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) {effeclive 1 January 2019) - Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 20(. IGD meets the definition of a public benefit entity under FRS 102. Assets and liabilities are inttialty reeognised at historical cost or transaction value unless otheNise stated in the relevant accounting polw notes. During 2020 the impact of the ongoing COVID-19 pandemic created UnrtaInty for IGD and ils subsidiaries. However, although the impact to revenues resulted in a £4m1230kn1 reduction from 2019 revenues, mitigating cost savings meant that the impact to cash (including cash on deposill and reseeS was minimal (falling £0.1 m and £0.2m respectively). Budgeting for 2021 and beyond has taken the learnings from 2020 and assumes that the impact of COVID-19 will remain for some lime_ In addition. scenarios were prepared with a reduction vs budgeted income of 25 /D115°A in 2021 given that over a third of income was already contracted al the start of the year). These scenarios gave assurance that cash reseNes would remain positive for several years. Based on the budget, these scenafios and the available liquid resource, the Trustees believe that. while uncertainty exists. this does not pose a material uncertainty Ihal would cast doubt on the charity's ability to continue as a going concem for the foreseeable fLrture, being a period of at least 12 months after the date on which the report and Financial Statements are signed. The Trustees, therefore, consider it appropriate for the accoun15 to be prepared on a going concem basis. Basis of Consolidation The consolidated financial statements have been prepared, uslng the equity method, for IGD and its subsidiary IGD Services Limited together with ils subsidiaries, IGD Services {Canadal Inc. and IGD servIs (Singapore) Ple. Ltd. The entity has taken exemption from presenting its unconsolidated profit and Soss account under section 408 of Companies Act 2006. Income Income is the amount receivable for services supplied and from subscriptions for membership, excluding value adijed tax. lthere income is received relating to fvlure events {such as a conference or workshop) il is deferred and treated as a creditor until the event has occurred. Where income is received relating to a fixed period leg a subscription to one of our online services or membership} the amount is allocated across the length of the subscription on a mnthly basis and any portion relating to a fvture period 15 deferred and treated as a creditor. Donations received and fund-raising efforts are shown as income in the year in whi¢h Ihey are receivable. Expenditure ExpendibJre is alloGated between costs of raising funds and costs of charitable activities accordlng to the actual spend for e2¢h category. Expenditure on charitable activities are then further allocated between categories within charitable expenditure on the basis of their function within the Charty. Any such costs where il is not possible to allocate in this way are allocated across the activities in the same proportion as those which are direcuy allocated. Mn)ere costs are gpportioned beeen these headings a consistent basis is used. All costs are recognised on an accruals basis. Translation of Forelgn Curr8ncias Transactions denominated in foreign currencies are translated into sterling at the rate applying on the date of the transaction. Year end balances stated in foreign currencies are translated into sterling al the relevant Bank of England currency rale on 31* December. All gains and losses on translation of foreign currency amounts are recognised as income or expenditure. 14
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ended 3151 Decembèr 2020 Accountlng Pollcles (continued) Intanglble Assets Intangible assets relate to website development costs. ere group companies. websites are expected to generate future revenues in excess of the costs of developing those websites and all other capitalisation criteria are met, expendire on the fvnclionality of the website is capitalised and treated as an intangible fixed asset. The capitalised website development costs are subsequently amortised to 'administrative' expenses on a straight line basis over 3 years, except for those that are 'assels under construction,, where no amortisation charge is incurred until the asset is complete. Tanglble Agsets Only assets costing over £300 are capitalised. All fixed assets are stated at cost (or deemed cost in the case of Freehold Property). Depreoalion is calculated lo write off the cost amount of the assets over their estimated useful lives as follows= Land Buildings Building improvements Fixlures and fittings Office machinery & computer sothvare Computer Hardwa Not depreciated 50 years straight line 5 years slraighl line 10 years reducing balance years reducing balance 3 years straight line Impalmient Pollcy Impairment reviews are carrie<J out where there is an indication that the recoverable amount of a fixed assel is below its nel book value and values of assets written down accordingly. Leases Rentals paid under operating leases are charged to th8 income arsd expenditure account on a slraight-line basis over the term of the lease. Rgsearch Research expendrture is written off as it is incurred. Pension Gosts IGD operates a Group Personal Pension Plan. which is a defined contributlon pension scheme. The assets of the scheme are held separately from those of the company in an independentty administered fvnd. The cosl is recognised based on what is charged in the pericd. Inve$tmgnts Investments held as fixed assets are investment values in subsidiary companies and are slated at cost less provision for impairment where applicable. Any movement in the value is shown as a 'net gain on investment value, in the accounts. Funds Funds are classified under three main types.. Restricted.. These are funds that have been reekived by the Charity for a purpose specifi&J by the donor. General.. These are the unrestricted funds held by the charity and its subsidiary. Revaluation reserve.. The revaluation reserve in respect of the building is amortised over 50 years, in line with the depreciation of the building. The revaluation reserve represents the uplift in value recognised when adopting the fair value as deemed cost in 2015 under FRS 102. The reserve relating to specific funding for the building extension is classified as Restricted funds and is amortised on a straight-line basis lo write back the reserve over the estimated useful lives of the assets to which it lates. All other funds are dassified as Gener8J. Key ludgement and accountlng estlmates In preparing these flnancial statements, the trustees have not ¥Jentified any significant judgements and key esb'mates whieh impact on the financial statements. 15
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year onded 31 Docgmber 2020 Net IExpondituro)Ilncome Net (expendilure}lincc*ne Is Slated after eharging: 2020 2019 DepreciationlAMosation Auditors, remuneration - owned assets - for audit services - for other services 330,721 41,512 19,083 5,000 8.507 504.559 43.549 28,920 Indemnity insutanee Operating lease rentals plant and machinery staff costs 2020 2019 Wages and salaries Social security costs otheT pension costs 8,395,394 955.779 1343,148 10 694321 8,681.535 935.749 1.306.664 10.923,948 Total remuneration received by the senior leadership team was £1,341,98612019'. £1.337,036}. The pension costs of£1,343,14812019.. £1.306,6641 r8pr8S8nl the contributions payable by the company to the Group Pèrsonal Pension Plan. No Contributions were payable to the fund al the year end and induded in creditors.12019.' £nill. Redundancy, restructuring and lemiination costs relatlng lo a number of employees were £135,459 {2019.' £54,116). The averagg number of pem)anent and temporary employees of IGD during the year was 15712019."1591. Highar pald employe 2020 numbèr 2019 numbgr £60,001 to £70.000 £70,001 10 £80,000 £80,001 10 £90,000 £90,001 10 £100,000 £100,001 to £110,000 £110,001 to £120,000 £120,001 to £130,000 £130,001 to £140,000 £140,001 to £150,000 £170,001 to £180,000 £190,001 to £200,000 £230,00110 £240,000 £270,00110 £280.000 13 17 17 52 66 The banding includfjs salaries, bonus payments and payments in lieu of pension contributions made to employees during the year. Total pension contributions paid in respect of highgr paid employees were £665,42812019.' £654.3971. No remuneration or expenses were paid to Iruslees {see Note 181. 16
The Institute of Grocery Distribution Notes to the financlal statements (continued) For the yoar ended 31st December 2020 4. Intsrost receivablg 2020 2019 Bank deposit interest receivable 36.238 5. Taxation on the Surplu$ on Ordinary A¢tivlties 2020 2019 Amalysis of tax charge in the year.. Current Taxalion.. UK Corporation tax on Profts of the year (see 5bl thholding tax on overs8as inter group dividend received Under provision from prior year (see 5bl Canadian Income tax on Profits of the year 11.627 104 12.296 Tax on profit on ordinary activities 5b. Factors affectlng the tax charge for the year.. IGD SeNiees Ltd trading profrt on ordinary activities before tax (note 8a} 3,079,208 4,100,486 Profil on ordinary actiwkn.es multiplied by the standard rale of corporation tax of 19% {2019'.19%} Effects of.. Deferred lax not recognised Remeasurement of deferred tax for changes in tax rates Flxed asset differences Expenses not deductible for tax purposes Charitable donations paid through equity Income not taxable for lax purposes Group relief claimed thholding lax on ovwseas inter group dividend received 585.050 779,092 55,967 6,215 16,062 1,829 1585,030) 119,0081 76,783 137.689 176.8841 145.9241 (151.748} (80,0931 104 Total tax charge for the year IIGD Servlces Ltd) 104 17
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ended 31st December 2020 6. Income 2020 2019 Trddlng actlvltles: Membership subscriptions Insight based services 3.304.218 9,808.899 13,113,115 3,249,488 13.889,863 17.139.351 Charltable actfvitles: 6a. Other Income Money received from Govemment Job Ret&ntion Scheme 114,617 Expendlture Split of expenditure on ralslng funds 2020 2019 Direct Costs 538,038 2.273.879 Admlnistrativè expenses: Staff costs DeprecialionlAmortisation other admin costs 8,173.271 270.896 823.327 8.356,132 438,594 1.583.324 9.267.494 10,378,050 Governance costs: Auditors. remuneration -for audll 8ervices -for other services 41.512 19,083 9,866.127 43,549 28.920 12.724.398 7b. Split of oxpendituro on charltable acllvltles Sustaln- ablllty Econom1¢ Analy515 2020 Total 2019 Totsl People Health Dlrect cosis: 312,264 108,535 186.595 59,954 647.348 763,996 Admlnlstrative expenses- Staff costs Depreciation Other admin costs 850.061 20,654 132869 1,003,584 61S,$28 14,956 96211 726,695 519,383 12.620 477.204 2,462.176 11,595 59,825 74.589 384 852 563,388 2,906,853 2.485.616 65.965 494.556 3,046.137 613.186 Governance costs: Staff Cost$ 20,326 14,718 12.419 11.411 58,874 82,200 1336 174 792 200 634,753 3 613 075 3 892 333 18
The Institute of Grocery Distribution Notes to the financial statements leontinued) For the yaar ondod 314t December 2020 . Net Income of Tradlng Subsidiary IGD has a wholty owned subsidiary, IGD Services Limited Iregislered office.. Grange Lane, Letchmore Heath. Watford. VVD25 8GDI. The company provides insight based SèNice$ inclLEding c*nline infomialion sel¢e$. events. cuslomised solution5 and training services lo companies mainly within the food and consumer goods industry. It donates its taxable profits lo IGD and a summary of its trading results18 shown below. Audited accounts are filed annually with the Registrar of Companies. Profit and Loss Account 2020 2019 Tumover Direct expenses Administration expenses 13,082.860 1536.374) 9,502,736 16.890,368 12,264,136) 10.826 190 Operating surplus Interest receivable Dividend receivabte 3.043,750 35,458 3,800.042 58,738 Profit before taxation 3,079,208 4.100.486 Taxation Profil after taxation 104 3,079,104 11,627 4.088.859 Gift Aid Payment Retalned proflt In subsldlary 3.079 104 4 088 859 Totsl assets Total liabilities 11,903,459 11 532937 14.509.146 14.138,624 Shareholders, fvnds 370 522 370.$22 8 b. Net Income of Canadian Subsidiary IGD Services Limited has a wholty owned subsidiary registered in Canada, IGD Services (Canada) Inc. (registered office.. Impart Law Professional Corp, 700 - 34 King Street East. Toronto, MSC 2x9, Canada) incorporated under the Business Corporations Act of Ontario on 5th October 2010. The company provides insight and content services to IGD seNis Ltd and strengthens our global research proposits'on. 2020 2019 Tumovor Oirect exp8nses Administration expen8es 120,934 11,6641 101601 168,934 (7,922) 112,968 Profil beft)re taxation 17,669 48,044 Taxali¢)n Dividend paid 14,6821 {12,869) {232,531) Rètsined profitl(lossl IIGD Services Icanada) Inc.) 12,987 197 356 Total assets 273,942 1206.130) 303,541 {248,155) 55.386 Total liabilities Shareholders, funds 19
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ended 311t December 2020 8 c. Net Income of Slngapore Subsldlary IGD Services Limited also has a wholly owned subsKliary re9isleTed in Singapore, IGD Services {Singaporel Pte. Ltd. (registered office". clo Associate5 Corporate Services Ple. Ltd., 80 Robinson Road, #02-00, Singapore t8898) incorporated in Singapore on 15th February 2016. The company provides insight and content services to IGD Servi$ Limited and strengthens our researGh proposition across Asia. 2020 2019 Tumover Income from transfer of IP to parent company Management charge income Direct expenses Administration expenses 161.894 569,000 255.189 11,8211 271,678 255 986 ProfiU{lossl before tsxation 15,682 308,691 Taxation 573 Retalned profit IIGD Sorvl¢es (Slngaporel Pte. Ltd) 309.264 Total assets Total liabllilies 34.810 12,0231 46,093 1728.204) Sh8r8holders' fundsl{defiatl 32.787 Categorisation of Funds Unrestrlcted Funds (Group): Royaluation reserve Other unrestrictad funds Total general fund$ Fund brought forward Net deficit after taxation Reserves transfer 1.378,778 9,114,000 {220,8311 20.293 10,492,778 {220.8311 Fund carried forward 1358 485 62 10.271.947 Unrostri¢ted Funds (Company}: Rovaluatlon roserie Other unrestrlctèd funds Total general funds Fund brought foard Net deficit after taxation Reserves transfer 1.378.778 9,419.262 {533.189) 20.293 10.798,040 1533,189) Fund carried foard 1358 485 8 906 366 10 264851 20
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ondgd 31*t December 2020 9. Categorlsation of Funds {contlnued) b. Analysis of NetAssets (Group) General 2020 Designated 2020 Total 2020 Genèrnl 2019 D•8ignatsd 2019 Total 2019 Fixed assets 1011854 1,358.485 2 370.339 1248 682 1378.778 2.627,460 Current assets.. Cash at bank and in hand short.lemi bank deposits Other current assets 8,264.622 4,106,296 3 163,096 15,534,014 8.264,622 4.106,296 3,163092 15,534,014 8,458,224 4,058,208 3 059 456 15,575,888 8.458,224 4.058,208 3 059 456 15.575,888 Creditors less than one year .613 168 613 168 7 699 320 7 899 320 Net current assets 7 920 846 7 920 846 7 878 568 7 876 568 Total assets legs current Ilabllltles Creditors due after more than one year 8,932,700 1,358A85 10.291.186 9.125,250 1,378,778 10.$04.028 19,238 11,250 Net Assets 8913462 1 358 485 10 271947 9114000 1 378 778 10 492 778 Anatysls of Net A$$ets (Company) General 2020 D•slgnat•d 2020 Totsl 2020 General 2019 Doslgnat¢d 2019 Totsl 2019 Flxed assets 926 495 1 358 485 2 284 980 953 807 1 378 778 2 332 $85 Current assets.. Cash al bank and in hand Other current assets 3,972,872 4,560.060 8,532,932 3.972,872 1.927,284 7,840 522 9,767.803 1,927.284 7 840,522 9,767.806 8,532.932 Credftor8 lesg than one year 553,061 1 302 351 1302 351 Net current assets 7.979.871 7 979 871 8 465 455 8.465 455 Net Aets 8,906.366 1.358.485 10 264 8S1 9,419.262 1.378.778 10 798 040 21
The Institute of Grocery Distribution Notes to the financial statements Icontinued) For the yèar ended 31°, DeGembor 2020 10. Intanglble and Tangible Fixed Assets a. Group- Tanglble Assets Freehold property Building Improv'ts F5xtures and equipmet)t Totsl Cost At 1 January 2020 Additions Disposals I Write offs 2.205,148 111,895 12,220 1,617,897 41,129 (240,5791 3,934.940 53,349 (240,579} At 31 Dember 2020 2.205,148 124115 1418,447 3,747.710 Accumulated de At 1 January 2020 Charge for the year Di8posals I Imite offs reciatlon 272,238 30,503 73,862 16.983 1.138,074 153,812 1240,579) 1.484,174 201.298 {240,579) Al 31 Dember 2020 302,741 90.845 1,051 307 1,444,893 Net book value At 31 Decèmber 2020 33.270 367 140 2 302817 At 31 December2019 1.Y32,910 479.823 2.450.766 IGD has taken the option in FRS102 to use the latest valuation of the freehold propety as deemed cost at the transition date of 1 January 2015. b. Group- Intanglble Assets Softwarè Wabsit•s A8$ets undgr ¢onstruction Total Cost At 1 January 2020 Additions At 31 Decernt 2020 95.109 793.589 888,678 95,109 793.569 908 929 ccumulated amortlsatlon At 1 January 2020 Charge for the year At 31 December 2020 24.555 687,429 106,140 793,569 711,984 129423 Net book value At 31 Decembar 2020 47.271 67.522 At 31 December 2019 70,554 106,140 176,694 Assets under conslructton were costs incurred lo dale on configuring new finance softsvare due lo go Ilve durtng the first haK of 2021 al vthich point it will be moved to 'soflware' and amorbsed. 22
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ended 31Bt Decomber 2020 10. Intangible and Tanglble Flxed Assets {continuod} Company- Tanglble Assets Freehold propo Buildlng lrnprov'ts Flxtu and equipment Total Cost Al 1 January 2020 Additions 2,205,148 111,895 12,220 159,201 2.476.244 12.220 At 31 December 2020 2205 148 124.115 159,201 2.488,464 Accumulated de At 1 January 2020 Charge for the year lon 272,238 30,503 73,862 16,983 97,559 12,339 443,659 59,825 At 31 December 2020 302 741 109898 Net book value At 31 December 2020 1 902,407 1984 980 At 31 December 2019 1.932,910 38,033 2,032,585 11. Investments a. Group Undortaklngs 2020 2019 Shares at cost- IGD Services Limited 300 000 12. Debtor8 Group Company 2020 2019 2020 2019 Trade ijebtors Amoynl due from group undertaking other d&blors Prepayments and accrued income 2,790.255 2,558.757 4,425.187 40,496 94,377 7,763.418 59,557 17.547 50.564 322,277 60,508 440.193 3163 096 3,069.456 4,560 060 7,840,522 23
The Institute of Grocery Distribution Notes to the financlal statements (continued) For the yeaf endgd 31M December 2020 13. al Creditors: Amounts falling due within one year Group Compary 2020 2019 2020 2019 Trade creditors Taxation and social security Accruals Deferred income Isee 13c) 593,799 785,722 411,545 5,822.102 470,871 817,384 1,270,420 5,140,645 118,918 262,510 138,278 33.355 41,571 275.714 936.511 48.555 7 613 168 7 699,320 653.061 1302 351 bl Credltors: Amounts falllng due after more than one year Group Company 2020 2019 2020 2019 Deferred income Creditors falllng due after one year comprises deferred income for subscriptions which fall beyond 31" De¢eMtrr 2021. Movement In deferred Income Group Company 2020 2019 2020 2019 Deferred inwng brought forward Released in the year Income deferred in the year 5,151,895 (5,127.5571 5,817,001 5,510,681 15.424,7631 5,065,977 48,555 127,2001 12,000 58.813 {29,7581 19,500 5 841 340 5,1 $189S 33.355 Deferred income CompSe8 ineome invoiced for subscriptions, membership, training and events which fall beyond 31. December 2020. 14. Reconciliation of net lexpendlturnyin¢omtr to Operating Cash Flows 2020 2019 Net lexpenditure)Ancome Investment income Depreualionlamortlsatbon charges {Loss)Iprofil on revaluation of overseas subsidiary reserves Ilncreaselldecrease in debtors Decrease in creditors {215,232} 136.238) 330.721 {813) 195.392) 78.164 582,861 160,2411 504,559 24,727 803.946 386.971 (95,1181 (13,0341 1,468,881 16,8511 Taxauon pald Net cash {us8d byVgen8ratsd from operatlng actlvltlgs 108 152 24
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ended 31st December 2020 15. Retonciliation of Not Cash Flow to Movement in Net Funds 2020 2019 {Decreasellincrease Sn cash for the year 193602 1297 375 Movement In net fund8 for thè year {193.6021 1.297,375 Net fijnds at 1 January 8,458,224 7.160,849 Net funds at 31 December 8,264622 8.458.224 16. Anatysis of Net Funds Balance 3108C 2020 Balance 1 Jan 2020 Cash Flows Cash al bank and In hand 8.458,224 1193.6021 8,264,622 Total net funds 8.468.224 193 602 264 622 17. Lease commltments 2020 2019 Minimurn future lease commrtment.. Due within one year Due 2-5 years 3,514 23.207 3,514 23.207 None of Ihe above lease commitments are in respect of land and buildings. 18. Trustees, Relmbuvsements No reimbursements were made in 2020 or 2019 in respect of TNsteès' expenses. No Truslee has received any remuneration in 2020 or 2019 for thelr role a8 TTuslee. 19. Relat Party Transactlons There were no relalod party Iransacb'ons in ther 2020 or 2019. The Company has taken advantage of the exemptions available in tems of the requirement to disclose transactions with gTQUP companies on the grounds that consolidated financial statements are prepared. 25
The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ended 3151 December 2020 20. Results of the parent ¢ompany As a consolidated Slalemenl of Financial Actlvltles Is publlshed, a separate income and expenditure account for the parent undertaking is omitted from the group accounts by virtue of section 4rJ8 of the Companies Act 2006. The deficit for the year retained in the books of the parent undertaking was £533,189 12019. surplus £198,030). Total net income of the parent undertakirg was £3,193,721 12019.. £4,088,859) being the Gift received from IGD Services Ltd (£3,079,104.. 2019.. £4.088.8591 and Government Job Retention Scheme income of £114,61712019.' £nill. 21. Capltsl Commltments At 31 December 2020 th8 Group was commltted to capllal Spend of £0.02m being the configuratlon of new finan software {2019= £nill. 26
The Institute of Grocery Distribution Independent auditor's report to the members of The Institute of Grocery Distribution Opinion on Ihe financial statements In our opinion, the financial statements.. give a true and fair view of the stale of the Group's and of the Parent Charitable Company's affairs as at 31 Dember 2020 and of the Group's incoming resources and application of resources and the Parent Charitable Company's ineoming resources and application of resources 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. We have audited the financial statements of The Institute of Grocery Distribution I'lhe Parent Charitable Company") and its subsidiary ("the Group.) for the year ended 31 December 2020 which comprise the group statement of financial activities lincorporaling an income and expenditure accounti, the group 2nd parent company statement of financial position, the group slalement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United lQngdom Accounting Standards, including Financial Reporting Stsndard 102 The Financial Repong St8nd8rd applicabl8 in the UK and Rèpublic of Ireland (United Kingdom Generally Accepted Accounting Practice). Basis lor opinion We conducted our audit in a(xordan¢e with Intemational Standards on Auditing IUKI {ISAs (UKII and applrcable law. Our responsibilities under those standards are further described in the Auditr)rf5 responsibilities for the audit of the financial statements section of our reporL We are independent of the Gmup and the Parent Charitable Company in accordance with the ethical requirements relevant to our audit of the financial 5tatenients 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 tr) provide a basis for our opinion. Condusions related to going concem In auditing the financial statements, we have concluded that the Trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied. we have not identrfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for Issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concem are de$¢ribed in the relevant sections of this reporL otherinformation The Trustees are responsible for the other information. The other infomiation comprises the inftjrmation included in the AnnLsal Report, other than the finanal slalemenls and our auditor's rewrt Ihereon. The other information comprises.. Trustees, Report (including Strategic Report}. Our opinion on the financial statements does not cover the other information and, expt to the extent otherwise expliciuy staled in our report, we do not express any form of assurance conclusion thereon. Our resF)onsibility is lo read the other informab.on and, in doing so, consider whether the other inforniab'on 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 incon51Stencies or apparent material misstatements, we are required to delemine whether this gNes rise to a material misstalemenl in the financial statements themselves. If, based on the work we have perfo)Thd. we conctude that the is a material misstatement of this other information. we are required to report that fact. We have nothing lo report in this regard. other Companies Act 2006 porting In our opinion, based on the wotk undertaken in the course of the audit.. the information given in the Trustees, Report, which includes the Directors, Report and the Strategic report prepared for the purposes ol Company Law. for the financial year for which the financial statements are prepared is consistent with the financial slatemenls,. and 27
The Institute of Grocery Distribution Independent auditor's report to the members of The Institutg of Grocery Distribution (ctd) the Strategic report and the Directors, ReporL which are included in the Trustees. report, h8ve been prepared in accordance with applicable legal requirements. In the light of the knowledge and understsnding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit. we have not identified material misstatement in the Strategic report or the Tmstee's reporL We have nothing lo report in respect of the following matters in relation to whh the Companies Act 2006 requires us to report to you if, in our opinion., adequate accounting records have not been kept by the Parenl Charitable Company, or retums adequate for our audit have not been received from branches not visited by us,. or the Parent Charitable Company financial statements are not in agreement with the accounting records and returns. or certain disckjsures of Directors, remuneration specified by law are not made.. or we have not reiVed all the infomiation and explanations we require for our audit. Responsibilities of Twstees As explained more fully in the Statement of trustees. responsibilities, 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 intemal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for assessing the Group's and the Parent Charitable Company's ability to continue as a going concem, disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic allemative but to do so. Auditorfs responsibilities forthe audit of the financial statements We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and levant regulations made or having effect thereunder. Our objectives are lo 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 auditorfs report that includes OUT opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 fftasonably be expected to influence the economic decisions of users taken on Ihe basis of these financial statements. Extent to whlch the audlt was capable of detectlng Irregularltles, Includlng fraud Irregularities, including fraud, are instances of non-compliance with laws and gUlations. We design procedures in line with our responsibilities, outlined above, to detect malerkgl misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding of the gfOUP and charitable company and the industy in which it operates, we identified that the Principal laws and regulations that directly affect the financial statements lo be relevant charities acts in the UK and Ireland. We assessed the extent of mplianCe with these law5 and regulations as part of our procedures on the related financial statement rtems. In addition the group and charitable company are subject to many other laws and regulations where the Consequences of non-complianee could have a material effect on amounts or disclosures in the financial statements. for Instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect.. employment law, data protection and health and safely legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and reguLqtions lo enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any. 28
The Institute of Grocery Distribution Independent auditorf8 report to the members of The Institute of Grocery Distribution Ictd) Audit predureS performed by the engagement team included: We delem)ined that the most significant which are direclty relevant to specific assertions In the financial statements are those re181ed to the financial reporting framework including bul not limited to United Kingdom Generally Accepted Accounting Practice and the Companies Act 2006, Statement of Recommended Practice for Accounting Reporting by Charities ISORP FRS 102}, The Health and Safety at Work Act 1974, Data Protethon Act 2018, Bribery Act 2010 and tax legislation. We understood how the charitable company is comptying wÈth those legal and gUlatOry frameWoS by making enquiries to management and those responsible for legal and compliance procedures. Ilve corroborated our enquiries through our review of minutes and correspondences wtth HMRC and the various charity regulators,. Challenging assumpts'ons made by management in their significant accounting estimates in particular in relation to the accftjals, depreciation and bad debt provisw)n,' and We assessed the sUSp11b1llty of the charitable company's financial Statements to material misstatement, including how fraud might occur by discussing with management where il is considered there was a susceptibility of fraud relating to management override of controls ané improper income recognib'on. In addressing the risk of fraud including the management override of controls, and improper income recognition we tested the appropriateness ofjoumal entries and other adjustments including material journals posted manually and manual journals lo cash posted outside expectalion-, reviewed application of assessing whether the judgements made in making accounb'ng estimates are indicalwe of a polenb'al bias; tested the application of cut-off and revenue recognition, path'cularly around training, reSeah and membership subscriptions, and evaluating the business rab'onale of any signifunl transa¢tions that are unusual or outside the normal course of business.. Our audit procedures were designed to respond to Iisks of material misstatement in the financial slatements, iecognising that the risk of not detecting a material misstatement due lo fraud is higher than the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by, for example, forgery. misrepresentations or through collusion. There are inherent limitattons in the audit procedures perfomed and the further removed non-complhance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities for the audit of the financial statements is located at the Finan¢Tral Reporting Council's I"FRC's°I website al.. https'.Ilwww.frc.org.uklauditorsresponsibilities. This de$cription forms part of our auditor's report. Use of our report This report is made solely lo the Charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the Charitable Company's members those matters we are required to stste to them in an auditor's report and for no other purpose. To the fvllest extent permitted bylaw, we do not accept or assume responsibility lo anyone other than the Charitable Company and the Charitable Company's members as a body. for our audit work, for this report, or for the opinions we have fom*d. 08jd by.. 6£)D LL? C9A7C738&435456 Laurence Elliott (Senlor Statutory Auditor} For and on behalf of BDO LLP, statutory auditor London, United Kingdom 16 July 2021 Date.. BDO LLP is a limited liabllity partnership registered in England and Wales (with registered number OC305127). 29
The Institute of Grocery Distribution Board of Trustees and IGD Services Limitsd Board of Dire¢tor3 For the year ended 31$t December 2020 The following is a list of TnJ5tees and Directors who have served since 1st of January 2020. Individuals served throughout the year unless otherwise indicated. Trustee of IGD and Director of IGD SeThlces Ltd Ann Bell {resigned Feb 20211 Chief Operating Officer Tesco Thailand lan Modey Group Sales Director, Northem Europe Prccler & Gamble David O'Flynn (resigned Feb 20211 Chief Financial Officer Musgrave Jill Ross Chi8f Executive Officer Mccurrach UK Ltd Colin Moss FP&A Director Mars wri9Y Confectionary UK (Trustee througholrt the year, appointed as Director of IGD Services Ltd from Feb 2021 } Trustee of IGD Lindsay Boswell (appointed Jan 20201 Chief Executive Officer Fareshare.org Andrew Clappen Group Corpordte Sewi$ Director Morrisons Mark Webster Managing Director- ESS DefenlOffsh0rel Remote Compass Group UK & Ireland Chris hlIfIeld Chief Operating Officer Co-operative Food Dlrector of IGD Sè 'ees Paul Mills-Hi¢ks (resigned Feb 2021} Fwd Commercial Director Sainsbury's Bradley Moore Sales Director Neslle Purina Petcare UK Phil Tenney (SIgned Nov 2020) Chief Digital and Technotogy Officer Mi¢hael Evans Group Communications Director Greencore Group Sam Burston (appointed Feb 2021) Director of Grocery Sainsbury's 30
The Institute of Grocery Distribution Senior Leadership Team For the year ended 31st December 2020 IGD'S Senior Leadershlp Team compris•s: Chief Executive Officer Susan Barrett Chief Finance Officer lan Fish Strategy and Corporate Affairs Director Naomi Kissman Charity Programmes Director Anne Bordier Commercial Director Nick Downing Produ¢ls Director Ben Miller {appolnted Jan 2020) Communications and Markets'ng Director Sarah Bahjock 31