Charity registration number 327380
THE GERTNER CHARITABLE TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
THE GERTNER CHARITABLE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Michelle Gertner Simon Jacobs Mendi Gertner Moises Gertner (Appointed 1 April 2022) Charity number 327380 Principal address Fordgate House 1 Allsop Place London NW1 5LF Independent examiner David Passey ACA 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX Bankers Mizrahi Tefahot Bank Limited London EC2N 1HQ
THE GERTNER CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Statement of trustees' responsibilities | 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Statement of cash flows | 7 |
| Notes to the financial statements | 8 - 14 |
THE GERTNER CHARITABLE TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Trust Deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).
Objectives and activities
The trustees hold the capital and income of the trust fund upon trust to pay or apply the whole thereof to or towards or for the benefit or in furtherance of such Jewish charitable purposes, charitable institutions or charitable foundations or individuals in the United Kingdom or elsewhere in such manner and in such proportions as the trustees may from time to time in their absolute discretion determine and so that the trust fund shall be applicable both as to capital and income primarily for the support of Jewish charities and for other general charitable purposes.
The trustees have paid due regard to the public benefit guidance issued by the Charity Commission in deciding the allocation of funds.
Applications received for grant funding are considered and determined in accordance with the charity's Grant Making Policy Statement which is reviewed annually.
Grants are made in accordance with the Grant Making Policy Statement to registered U.K. and overseas charities in support of the education, health and wealth fare and other activities of those charities so that the public has a good understanding of how the Trust's structure and investment strategy helps to further its objects.
The charity has not made significant use of volunteers other than the trustees.
Achievements and performance
The Statement of Financial Activities on page 5 shows the incoming and outgoing resources for the year. Incoming resources comprised solely of donations receivable of £789,710 a decrease of £492,697, this is a decrease compared to the previous year.
The charity has maintained its policy of allocating grants to individuals and charitable organisations, both within the U.K. and overseas.
Financial review
The balance sheet on page 6 shows the financial position of the charity as at 31st March 2022.
At the balance sheet date there was a funds deficiency of £4,283,556 (2021: £4,755,735). The funds deficiency arose in 2010 as a consequence of meeting commitments for grants made in that year. The financial statements have been drawn up on a going concern basis as Indigo Investments Limited has confirmed its continued support to enable the Charity to meet its objectives.
The trustees have reviewed the financial position of the charity and consider that, with the support of Indigo Investments Limited, funds are available to cover the management and administration costs for the forthcoming year.
The charity aims to distribute its unrestricted funds as as soon as it is able, although the trustees will ensure that
sufficient reserves are maintained to meet grant payments for the foreseeable future.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has not been maintained during the year and the trustees are currently striving to build the reserve up.
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THE GERTNER CHARITABLE TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
The Trustees have reviewed the major risks to the charity and it is considered that appropriate and reasonable systems are in place to cover foreseeable eventualities. From time to time further reviews will be undertaken.
The trustees will continue to adopt a policy of making regular donations to or for the benefit or in furtherance of such Jewish charitable purposes, charitable institutions or charitable foundations as the trustees may from time to time in their absolute and uncontrolled discretion determine.
Structure, governance and management
The Gertner Charitable Trust is a registered charity (number 327380) and was established under a Trust Deed dated 3rd February 1987.
The trustees who served during the year and up to the date of signature of the financial statements were:
Michelle Gertner Simon Jacobs Mendi Gertner Mr Michael Wechsler (Deceased 12 December 2021) Moises Gertner (Appointed 1 April 2022)
The statutory power of appointing new or additional trustees is vested in the current trustees.
The total number of trustees shall not be less than two.
The Trust's day to day activities are administered by the trustees. The Trust has regular quarterly meetings.
The Charitable Trust has no employees.
The trustees' report was approved by the Board of Trustees.
Simon Jacobs Trustee
Dated: 25 January 2023
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THE GERTNER CHARITABLE TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2022
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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THE GERTNER CHARITABLE TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE GERTNER CHARITABLE TRUST
I report to the trustees on my examination of the financial statements of The Gertner Charitable Trust (the charity) for the year ended 31 March 2022.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Use of my report
This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My independent examination work has been undertaken so that I might state to the Charity’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees, as a body, for my independent examination work, for this report, or for the opinions I have formed.
David Passey ACA 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX
Dated: 25 January 2023
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THE GERTNER CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Donations and legacies | 2 | 789,710 | 1,282,407 |
| Other income | 3 | 350 | - |
| Total income | 790,060 | 1,282,407 | |
| Expenditure on: | |||
| Charitable activities | 4 | 317,881 | 283,307 |
| Net income for the year/ | |||
| Net movement in funds | 472,179 | 999,100 | |
| Fund balances at 1 April 2021 | (4,755,735) | (5,754,835) | |
| Fund balances at 31 March 2022 | (4,283,556) | (4,755,735) |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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THE GERTNER CHARITABLE TRUST
BALANCE SHEET
AS AT 31 MARCH 2022
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Creditors: amounts falling due after more than one year 11 Net liabilities Income funds Unrestricted funds 13 |
2022 £ £ 24,481 (11,980) 12,501 (4,296,057) (4,283,556) (4,283,556) (4,283,556) |
2021 £ £ 34,937 (8,500) 26,437 (4,782,172) (4,755,735) (4,755,735) (4,755,735) |
|---|---|---|
The financial statements were approved by the Trustees on 25 January 2023
Simon Jacobs Trustee
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THE GERTNER CHARITABLE TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
| Notes Cash flows from operating activities Cash generated from operations 14 Financing activities Repayment of borrowings Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ £ 475,659 (486,115) (486,115) (10,456) 34,937 24,481 |
2021 £ £ 1,000,100 (998,260) (998,260) 1,840 33,097 34,937 |
|---|---|---|
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THE GERTNER CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
Charity information
The Gertner Charitable Trust is a registered charity (number 327380) and was established under a Trust Deed dated 3rd February 1987.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
This is because Indigo Investments Limited has confirmed its continued support to enable the charity to meet its debts as and when the fall due. Details of the support provided to the charity by Indigo Investments Limited are disclosed in the related party transactions notes to the Financial Statements.
The Trustees have recognised that, due to the impact of Covid-19, there has been a significant impact on the activities of the charity.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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THE GERTNER CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
1.5 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.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at the charitys' Head Office.
Charitable activities and Governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.7 Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.
1.8 Interest Receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
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THE GERTNER CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 2 | Donations and legacies | |||
|---|---|---|---|---|
| **Unrestricted ** | Unrestricted | |||
| funds | funds | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Donations and gifts | 789,710 | 1,282,407 | ||
| 3 | Other income | |||
| Unrestricted | Unrestricted | |||
| Funds | ||||
| funds | ||||
| 2022 | 2021 | |||
| £ | £ | |||
| Compensation received | 350 | - | ||
| 4 | Charitable activities | |||
| Unrestricred | Unrestricred | |||
| funds | funds | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Grant funding of activities (see note 5) | 313,232 | 277,196 | ||
| Share of support costs (see note 6) | 1,169 | 2,111 | ||
| Share of governance costs (see note 6) | 3,480 | 4,000 | ||
| 317,881 | 283,307 |
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THE GERTNER CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
5 Grants payable
| Grants to institutions: Achisomoch Ashiva Shifteynu Chabad Lubavitch Chasdei Aharon CML Merkas Azdaka Vahesed North West London Talmudical Ohel Avraham OJC Fund Roots Etz Chaim Inc Ruzin Sadagora Shareh Orah Sunderland Talmudical College UKLFI Verein Familie Yeshivas Ahavas Torah Yishaya Adler Memorial Zoldan Zvi Beis Hamedrash BHNY Beis Yaakov Primary School Foundation Friends of Beis Yisroel Trust Kef Kids Keren Shabbos Moreshet Hatorah Torah (5759) Limited Tomchei Yotzei Anglia Diaspora Yeshiva New York Kollel Bais Yechiel Merkas Hatzedaka Torat Emet Grants to individuals |
2022 £ 79,685 - - - 28,800 - - - - - - - - - - - - - 12,443 5,952 6,000 500 5,000 21,000 6,900 13,800 41,500 30,000 1,680 25,000 278,260 34,972 313,232 |
2021 £ 45,650 5,855 10,000 8,019 18,100 5,000 1,000 49,000 1,000 1,417 10,000 2,000 4,350 9,500 39,000 9,050 1,000 1,800 - - - - - - - 7,800 - - - - |
|---|---|---|
| 229,541 47,655 |
||
| 277,196 |
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THE GERTNER CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
6 Support costs
| Bank charges Audit fees Accountancy Independent examiners fee Analysed between Charitable activities |
Support costs Governance costs £ £ 1,169 - - - - 2,000 - 1,480 1,169 3,480 1,169 3,480 |
2022 £ 1,169 - 2,000 1,480 4,649 4,649 |
Support costs Governance costs £ £ 2,111 - - 2,000 - 2,000 - - 2,111 4,000 2,111 4,000 |
2021 £ 2,111 2,000 2,000 - |
|---|---|---|---|---|
| 6,111 | ||||
| 6,111 |
Governance costs includes payments to the Independent examiner of £3,480 (2020: Auditors fee £4,000).
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration, reimbursement of expenses or benefits from the charity during the year (2021: £NIL).
8 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
The charity has no employees and as such there were no employee remuneration and/or benefits paid in either year.
9 Loans and overdrafts
| Loans and overdrafts | ||
|---|---|---|
| Other loans Payable after one year |
2022 £ 4,296,057 4,296,057 |
2021 £ 4,782,172 |
| 4,782,172 |
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THE GERTNER CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 10 Creditors: amounts falling due within one year 2022 2021 £ £ Accruals and deferred income 11,980 8,500 11 Creditors: amounts falling due after more than one year 2022 2021 £ £ Borrowings 4,296,057 4,782,172 12 Analysis of net assets between funds Unrestricted funds Unrestricted funds 2022 2021 £ £ Fund balances at 31 March 2022 are represented by: Current assets/(liabilities) 12,501 26,437 Long term liabilities (4,296,057) (4,782,172) (4,283,556) (4,755,735) |
2022 £ 11,980 2022 £ 4,296,057 |
2021 £ 8,500 |
|---|---|---|
| 2021 £ 4,782,172 |
||
13 Related party transactions
At 31 March 2022 the Trust owed £4,041,052 (2020: £4,782,172) to Indigo Investments Limited, a company incorporated in Gibraltar which is controlled by The Gertner No. 1 Settlement, connected with Michelle Gertner. Indigo Investments Limited has confirmed they will not be calling upon these funds to be repaid within the next 12 months.
At 31 March 2022, there was a funds deficiency on the balance on unrestricted funds amounting to £4,283,556. Indigo Investments Limited has confirmed that it will continue to provide support to enable the charity to continue to meet its charitable objectives.
After making appropriate enquiries, the trustees have a reasonable expectation that, with the support provided by Indigo Investments Limited, the charity will have adequate resources to continue in operational existence for the foreseeable future. For this reason, the charity continues to adopt the going concern basis in preparing the financial statements.
| 14 Cash generated from operations Surplus for the year Movements in working capital: Increase in creditors Cash generated from operations |
2022 £ 472,179 3,480 475,659 |
2021 £ 999,100 1,000 |
|---|---|---|
| 1,000,100 |
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THE GERTNER CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 15 Analysis of changes in net (debt)/funds At 1 April 2021 £ Cash at bank and in hand 34,937 34,937 Loans falling due after more than one year (4,782,172) (4,747,235) |
Cash flows At 31 March 2022 £ £ (10,456) 24,481 (10,456) 24,481 486,115 (4,296,057) 475,659 (4,271,576) |
|---|---|
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