tz Twycross Zoo AT THE HEART OF CONSERVATION Twycross Zoo- East Midland Zoological Society Limited (limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2023 Company Number 1060956 Registered Charity Number 501841 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 CONTENTS PAGE Administration, Officers and Advisors Report of the Trustees Statement of Trustees, Responsibilities 14 Independent Auditors Report to the Members 15 Consolidated Statement of Financial Activities 19 Consolidated Group and Company Balance Sheet 20 Consolidated Statement of Cashflows 21 Accounting Policies 22 Notes to the Accounts 28 Page I Twycross Zoo- East Midland Zoological Society Limited Co No.. 1060956 Registered Charity No: 501841 Year ended 31 December 2023 ADMINISTRATION. OFFICERS AND ADVISORS REGISTERED OFFICE Norton Grange Norton-Juxta-Twycross Atherstone Warwickshire, CV9 3PX REGISTERED NUMBER 1060956 CHARITY NUMBER 501841 COMMIThEE ITRUSTEESI The Trustees of the charitable company, who are directors forthe purpose of company law are: Rt. Hon. G W Hoon (Chairman) HSDua G C W England E A Hardwick-srnith H J Mitchell T B Payne T Maxted D Beckett PC Popham M Bennett COMPANY SECREfARY M Dytham AUDITOR Forvi5 Mazars LLP Park View House 58 The Ropewalk Nottingham NGI 5DW BANKERS Metro Bank plc Southampton Row London WCIB SHA Page 2 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES The Trustees present their annual report. together with the consolidated financial statements of the charity and its subsidiary for the year ended 31 December 2023. which are also prepared to meet the requirements for a directors, report and financial statements for Companies Act 2CK)6 purposes. CONSTITUTION Twycross Zoo- East Midland Zoological Society Limited {"Twycross Zoo" and'the Zoo") is a private company limited by guarantee (incorporated in England and Wales with company registration number 10609561 governed by adopted Articles of Association as amended 24 June 2019. The Trust is also constituted as a registered charity with the Charity Commission- charity registration number 501841. The Board of Trustees ("the Board") confirm that the financial statements comply with current generally accepted accounting principles. STRUCTURE, GOVERNANCE AND MANAGEMENT The board of direttors are the trustees of the charity supported by the executive management team who together comprise the key management personnel of the charity. The executive management team are in charge of directing controlling, running and operating the Zoo on a day-tiTrday basis. COMMIThEE (TRUSTEES) The Trustees of the charitable company, who are directors for the purpose of company law. who served during the year and up to the date of this report are: Rt. Hon. G W Hoon {Chairmanl HSDua G C W England E A Hardwick-smith G A Middleton H J Mitchell T B Payne T Maxted D K Beckett P C Popham M Bennett Resigned l January 2023 Appointed l January 2023 Appointed 11 December 2023 Appointed 11 December 2023 KEY MANAGEMENT PERSONNEL Djmeek C Dunkerley C Watson R Biddle S O'connor Resigned 26 February 2023 Chief Executive Officer- Appointed 5 June 2023 Finance Director Dirertor of Conservation Commercial Head of Retail & Operations Resigned l January 2024 Operations and Commercial Director Appointed 12 February 2024 Marketing Director Appointed 12 February 2024 J Gurr J Turner Page 3 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No- 501841 Year ended 310ecember 2023 REPORT OF THE TRUSTEES (continued) Method of appointment. induction and training of Trustees The Board appoint new Trustees as and when they see fit in order to maintain an appropriate range of skills and experiences amongst the member5. NewTrustees undergo an extensive Induction Programme and briefing sessions on the organisation, its aims and objectives. They are provided with a copy of the constitution, roles and responsibilities of being a Trustee at Twycross Zoo, the most current Annual Report and Financial Statements, management accounts, the current business plan, management structures, policies relating to health & safety. equal opportunities, animal collection plan, economic impact assessment and development assessment. Throughout the year, Trustees meet with the CEO and the Executsve/Management team for regular updates regarding the performance and strategic delivery of the Zoo. In addition, Trustees attend events held during the year which gives them the opportunity to meet with management within the organisation as well as visitors to the zoo. Indemnity Insurance The Trust maintains indemnity insurance on behalf of its Trustees. Organisational Structure The Board of Trustees meet on a quarterly basis and call special General Meetings as and when these are required. In addition, the Chairman visits the Zoo regularly to review activities within the Zoo and also meets with the CEO on a regular basis. Oversight is provided by a structure of Committees delegated by the main Board. These Committees include Finance and Audit & Risk and an Ethical Review committee which both meet quarterly and a HR Organisation and Remuneration Committee which meets bi-annually. The Finance Comrntttee reviews current financial performance and ensures that future plans are properly costed and adequate funding is identified prior to being presented to the Board. The Finance Committee agrees the meeting frequency and dates in advance based on the needs of the organisation. This has resulted in meetings being held on a quarterly basis since 2019 and the Finance Committee members receiving management information on a monthly basis. During the prior year there was a reorganisation with the departure of the CEO and Chief Operating Officer with the Vice Chair of the Board of Trustees resigning from their position in May 2022 to become interim CEO in June 2022. The Finance Director also departed their role in July 2022, with a successor in place immediately. During the year a new permanent CEOjoined the executive from June 2023. At year end the ExecutiveTeam was made up of the CEO, Finance Director and Director of conse￿ation. Subsequent to the year end a new permanent Operations and Commercial Director and Marketing Director joined the executive from February 2024. The Executive Team was charged with management of daily operations and with proposing policy to the Board of Trustees. This process was managed bv quarterly Board meetings with Trustees which are formally minuted. Pay policy for staff Ordinarily all Trustees give their time freely, with the exception of out of pocket expenses. However, in the prior year David Meek received £4,900 for services over and above his normal Trustee duties before progressing to an executive role and taking over as interim CEO. Helen Mitchell also received £700 for one off services over and above her normal Trustee duties. The pay of staff is reviewed annually and subject to financial performance, an increase may be awarded. In view of the nature of the charity, methodology and benchmarking is gained from inside and outside the industry and similar roles are also used to assess pay and rewards. These include: benchmarking against pay levels in other similar organisations market rate analysis conducted where similar roles operate. Where necessary a market addition is paid but limited to the highest benchmarked salary for a comparable role. All staff are paid at least the National Minimum Wage appropriate to their age with pay rates adjusted in line with relevant legislation during the year. Page 4 Twycross Zoo - East Mid land Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES (continued) STRATEGIC REPORT PRINCIPAL OBJECTIVES AND AcfiviTIES The charitvs principal charttable objectives include the enhancement of animal welfare, conservation, education, research, and recreation for the visiting public. The group also carries out retail and catering activities to generate additional incomethrough its subsidiary company. Zoo Park (Twycrossl Limited. The Trust owns and manages Zoological Gardens at Norton-Juxta-Twycross in LeI￿stershIre covering an area of some 95 acres. The Trust's aims and objectives are: Life sciences - Practice professional standard5 of animal care and welfare and develop environmental enrichment programmes to give the animals a fulfilled lrfe. both physically and mentally. 2. Conservation - Incorporate the animals, wherever possible, into regional and global breeding programmes to aid specie5 conservation. Support sound genetic management and co-operative policies to maintain the genetic diversity of species in its care and support appropriate field programmes and reintroduction projects. Education- Develop formal and informal education programmes for all sectors of society regarding wildlife and its conservation (biodiversityl. 4. Re5e3rch - Encourage the scientific study of animals in areas that further animal welfare and conservation. Financial Resilience - Generate an income to fulfil the above and for the provision of facilities in the Zoo for the recreation and enjoyment. education and cultural enrichment of its visitors. The key developments and achievements in each of these areas is detailed in the following pages. l. Life Sciences With regardsto the zoo site, 2023 focused on a number of welfare related upgrades to existing enclosures. for example improved heating and lighting for multiple species, improvement of flooring substrates for the giraffe, addition of an outdoor offshow area for flamingos during avian influenza restrictions, replacement of viewing windows for gorillas, and addition of tiger climbing platforms and visual barriers for other species. As a member of EAZA, the European Association of Zoos and Aquaria, Twycross Zoo participated in forty-seven coordinated breeding programmes within Europe during the year and as such several species produced offspring. The following is a selection of births and hatchings during 2023. rnany of which are part of coordinated EAZA Ex-situ Programmes IEEPS); four emperor tamarins. nine Humboldt penguins, one vicuna, one verreaux5 eagle owl. one pileated gibbon. The Zoo's continued participation in worldwide managed species programmes, including EEPS IEAZA Ex-situ Programmesl and ISBS {International Studbooks) ensures the continued genetic health of the animals and populations. The Zoo coordinates the EEPS forthe black howler monkey, Ecuadorian Amazon parrot and pileated gibbon, and actively participates in many others including for Eastern black rhino, Sumatran tigers, and the bonobo, one of the four great apes and kept only by Twycross Zoo in the UK. Page 5 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No.- 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES (continued) Twycross Zoo's commitment to species management is evident in the Zoo's continued representation at both national and international level through its involvement in key working groups and committees focusing on species management and welfare. We continue to be members of European and international organisations. including the British and Irish Association ofzoosand Aquariums IBIAZAI, the European Association of Zoos and Aquaria (EAZAI, the World Association of Zoos and Aquariums {WAZAI and the International Union for Conservation of Nature IIUCNI. Staff at Twycross Zoo represent a wide array or expertise and specialisms, and between them currently hold overthirty external roles within BIAZA / EAZA / WAZA and the IUCN. Including the Director of Conservation, as Chair of the EAZA Population ManagementAdvisory Group, board memberof the Global Conservation Network, and memberof the BIAZA Field Conservation Committee, the Senior Curator a5 a member of the Gibbon Taxonomic Advisory Group and BIAZA Great Ape Welfare Group and the Veterinary Services Manager, as Chair of the 81AZA Veterinary Focus group and Veterinary Advisor forthe BIAZA Mammal Working Group. Conservotion This year saw the launch of Twycross Zoo's first ever external facing conservation strategy and an increase in our conservation expendtture, recognisingthe important role Twycross Zoo plays as a large charitable 200 and conservation organisation. Our Conservation Strategy 2023-2030 focuses on six key pillars underpinned by conservation research, education and training: l. Support the maintenance of healthy ex-situ populations of managed 5pecie5, Wlth a focus on threatened primates and species with a conservation breeding role. 2. Build conservation resources and capacity in house and in animal range countries to support the preservation of wild populations and their habitats. 3. Deliver conservation education to promote positive behaviour change for wildlife conservation. 4. Enhance the value of zoos for wildlife conservation by Influencing relevant national policy and securing the future and impact of conseNation zoos. 5. Conserve UK native wildlife and habitats on our site and beyond and support key UK environmental initiatives. 6. Become a sustainable organisation and minimize our contribution to global climate change. The year also saw the launch of our Biodiversity Action Plan IBAPI for the Twycross Zoo Nature Reserve, including own pledge for 30% of our land to be managed for native biodiverstty by 2030, to align with the UK government's targets. Other work on native species included support for the reintroduction of dormouse into Derbyshire, and feasibility and assessment regarding the suitability of woodland areas in Worcestershire for reintroduction of the nationally extinct Kentish glory moth. We continued our contribution to Butterflyconservation's UK Butterfly Monitoringscheme through data collection on our butterfly transect within the Twycross Zoo Nature Reserve. Alongside our UK conservation work, in 2023 we worked with many global partners, to conduct important conservation action to preserve endangered species and habitats, some examples of achievements in 2023 include: Friends of Bonobos, Democratic Republic of Congo Over 27,000 people reached through awareness-raising activities, including radio shows, school visits, and community sessions. Borneo Nature Foundation. Indonesia 0 76 environmental education sessions and five field trips delivered across eight different schools, reaching a total of 243 students. Page 6 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES (continued) Ape Action Africa, Cameroon o Camera traps deployed in Ngoandou Forest to su￿eY wild chimpanzee population. Amazona Lilacina Foundation, Ecuador 1,760 people were reached by education and outreach activities, across 11 schools and three community centers. Education Twycross Zoo has had an established cOnse￿ation education programme for several decades. The Zoo's education delivery is based on informal and formal education. Informal public educational talks are delivered via a series of multiple daily talks focussing on a range of different species and conservation issues. In 2023, over 73,000 visitors attended these talks. Our formal sessions include workshops delivered in the onsite Study Centre, and tours around the zoo, all based on the National Curriculum. These are delivered to schoo15, colleges and universities, ranging from Early Years, through the curriculum key stages up to Masterfs Level programrnes and in 2023 14,384 students participated. There is a long-standing partnership between the University of Nottingham and the Twycross Zoo veterinary department of over ten years and the Zoo is heavily involved in the clinical training of final year veterinary students. Twycross Zoo hosts students that take the final year elective of Zoo, Wildlife and Exotic Animal Medicine. Veterinary students have the opportunity to apply methods used during their course in a practical setting, including collecting data and conducting animal welfare audits. To complement the relationship with the UniversFty of Nottingham School of Veterinary Medicine and Science,Twycross Zoo also 5UPPOrts the veterinary nurse programme of Nottingham Trent University. Launched in 2018 this relationship continues to strengthen with Twycross Zoo providing clinical training and placements for veterinary nurse students. Twycross Zoo is currently working with various Midlands based universities to develop new courses and eXperIen￿S for students as part of the National Science and Conservation Centre INSCCI development. These courses include both undergraduate and postgraduate opportunities and will start to be deliVe￿d over the next few years. Research In 2022 Twycross Zoo participated in thirty-eight research projects across a wide range of scientific disciplines including veterinary science, conservation genetics, conservation science. ape cognition and animal behaviour and welfare. Of these projects, thirteen were at bachelorfs degree level, 6 at masterfs level. and 8 at PhD or post doc level. A focus has been on increasing projects have been at mastees level and above. which increases the likelihood of further acknowledgement5 for Twycross Zoo in peer reviewed journal publications. In 2023 Twycross Zoo staff authored and co-authored 5 scientific publications, I magazine article, and supported 30 conference submission5 {11 poster presentations and 19 oral presentations). Twycross Zoo is committed to driving research to help achieve our conservation and organisational goals. These include studies that will enhance wetfare or husbandry practices for our animals or help optimise conservation education/visitor engagement. We will also engage university partners in projects focused on helping us achieve our sustainability objectives and assessing native species at the Twycross Zoo Nature Reserve and within the wider zoo site. Page 7 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES {continued) Financial See 0150 Finonciol Review Section The Zoo traded well during the year. continuing its improving trend since the Covid-19 pandemic. Against a challenging economic backdrop the Zoo saw visitor numbers increase to 589k from 571k in the previous year while also driving an increase in spend per head. During the year the Zoo changed its primary offering to be an annual ticket product, rather than a day ticket, which improves the value proposition for the customer and has had the added benefit of improving the number of customers eletting to gift aid. This annual ticket was launched at the end of June and has been well received in the market. While the cash generated in the year has been stron& accounting revenue recognition rules mean that the ticket revenue is being earned over a 12 month period which has had the impact of reducing profitability during 2023 as tickets sold during the year are partly earned during the following year. The table below demonstrates the short term accounting impact of deferring this revenue. With ticket income deferred Without ticket income deferred 2023 2023 2022 £'ooo Total incoming resources 11,965 14,397 13,812 Net outgoing resources {4,155) (1,7231 11,124} Adjusting to remove the deferral of the annual ticket, income would have been £14.4m, up 4.2% which, against a challenging economic environment, is considered a positive trend. With regards to costs, the Zoo has focused on the welfare of both the animals on site and the team operating it with both staff and site management costs up year on year. Marketing costs have been held largely flat to reflect that the new ticket offering was such a strong proposition to the customer. Overall, EBITDA remained flat again year on year once adjusted to remove the impact of deferring annual ticket income, remaining at £l.Im12022- £1.Im). Overall, income including Government Support was £12.Om {2022". £13.8rn1. The net deficit is £4,155k12022: deficit of £1,124kl. The Total Funds decreased in the year by £4,163k12022: decrease of £978kl to £21.3m12022: £25.5ml. PUBLIC BENEFIT The Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public guidance published by the Charity Commission, including its supplementary guidance on fee charging. The launch of Twycross Zoo's Conservation Strategy 2023-2030 refreshed and reinforced Twycross Zoo's commitment to improving conservation and sustainability for the benefit of our planet that we share with other animals. The six pillars outlined above under the Conservation header demonstrate the breadth of commitments being made by the charity across a range of important global issues. The Biodiversity Action Plan is further evidence of the Zoos commitment to biodiversity specifically around the globe. Page 8 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES {continued) Internal Operations The Charity owns the whole of the issued share capital of Zoo Park (Twycross) Limited whose activities include the management of retail shops, cafeterias and conference facilities within the Himalaya building as well as additional retail and cafeteria5 facilities around the Zoo. The aim of the subsidiary is to generate funds to donate to the financial viability of the chartty. The subsidiary company pays rent to the charity in respect of the building5 and assets utilised by the shops and cafeteria5. The Retail Strategy continued to deliver a sound retail product offer. Increased visitor numbers compared to 2022 drove a strong revenue number which was almost flat with the previous year. The new annual ticket offering has driven an uplift in catering revenue year on year with repeat visitors continuing to utilise the catering outlets, while retail has seen a slight reduction as repeat customers are not as likely to visit the onsite shops. A full retail range review has been performed for 2024 to ensure the offering can be evolved and changed during the year to ensure variety for repeat visitors. Catering is delivered in partnership with a catering specialist. Retail and Catering turnover totalled £4.3m (2022: £4.4ml and profit £0.4m (2022: £0.7m). The Charity does not perfonn any material fundraising activities. Key Performance Indicators Key Performance Indicators are set to monitorand measure progress and achievements throughoutthe year. The Zoo's executive team monitors and reviews on a regular basis the charl￿S key performance indicators against budget and prior year performance which include:_ Admissions Revenue EBITDA Retail spend Catering spend Total visitors Education visits Memberships Regular monitoring of the KPI'S ensured the Zoo was able to achieve its financial, education and charitable objectives throughout the year. FINANCIAL REVIEW The Zoo generated positive EBITDA of £l.Im, adjustingto remove the deferral of annual ticket income. This trading cash inflow was used to fund financing costs of £1.3m in addition to capital investments of £l.Om resulting in an overall cash reduction in year of £1.2m. The annual Financial Statements for the year to 31 December 2023 are set out at pages 19 to 46. The Trustees, financial objectives are to make a surplus each year. In 2023, a deficit was made of£l4,155k}12022'. deficit of £(1,124kll. Capital Expenditure Capital investment in the Zoo's habitat and visitor experience is a strategic priortty of the Trustees. Fixed asset additions were £1,023k12022: £2,510k}. No major habitat developments were undertaken, although some minor improvements were performed on existing facilities. Income and Expenditure Admissions and related incorne was £7.6m12022: £9.3ml a decrease of 18% (2022: increase 35%), however adjusting this to remove the ticket revenue deferral shows a 7.5% increase to £IO.Om. refletting a strong summer. Donations and Page 9 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES (continued) Legacies received were £79k12022: £75kl. Retail and catering income decreased by 2% to £4,312k {2022: £4.386kl primarily linked to the change in ticket offering. Total Expenditure increasedto £16.Im12022: £14.9ml reflecting a full year of the depreciation of The Gruffalo Discovery Land, as well as the aforementioned additional spend on staff and site improvements. Zoo Park (Twycross) Limited The Zoo's trading subsidiary, Zoo Park {Twycr0551 Limited provides retail and catering facilities across the srte reported 3 turnover of £4.3m12022: £4.4m). The surplus of £381k12022: £723k) was 47% less than 2022 and is included in the Group surplus. Going Concern The Group has net cur.rent liabilities of £2.260k (2022". net current assets of £1.391kl. This is in large part due to deferred income as a result of the annual ticket. without which net current assets would be £44k. In determining whether the Group's annual financial statements can be prepared on a going concern basis. the Trustees have considered the Group's business activities, together with the factors likely to affett its future development, performance and position, including the impact of the cost of living crisis and high inf lation rate5 in the UK. The review also includes the financial position of the Company and the wider Group that the Company is part of, their short term and long-term cash flows, liquidity position and borrowing facilities. The goin8 concern assessment covers a period to the end of September 2025, representing more than 12 months from the date of signing the accounts. The base case projections are based upon a reforecast of the budget for 2024 and 2025 which have been approved by the Board of Trustees. The key factors considered by the Trustees in making the assessment of going concern were as follows: Prudent financial planning assumptions to ensure resources are directed towards critical activities. For example, potential upsides from activity such as donations made to the Group and from other one-off activities which are planned are excluded from the budget. Building on the positive trading experien￿ following the change in pricing and marketing strategies in Summer 2023 with yields continuing to improve. The implications that social and economic conditions may have the Group's revenues and profits driven by the cost of living crisis and high cost inflation. The uncertainty over future changes in the Bank of England interest rates, to which the interest on the £5.7m loan facility with an extended termination date of December 2039 and the £4.3m Coronavirus Business Interruption Loan ICBILI is bound. The Group breached one of their banking covenants in the first two quarters of 2023 which was notified to the bank. Following detailed discussions around the reasons for breach and the Group business plan, the bank waived these breaches. Given a challenging start to 2023 and the accounting implications of the new annual ticket the Group's banking partner agreed to reset the profitability based covenant such that it is next tested at 30 September 2024. to allow for a full 12 months of earnings of the new ticket. The minimum cash covenant was increased to account for higher levels of Bank of England base rates and the Group committed to testing the cashflow based covenant on a quarterly basis to provide further comfort around cash control. The changes are a further demonstration of the bank5 continued support for the Group. Page 10 Twycross Zoo - East Midland Zoological Society Limited Co No.. 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES (continued) During the first quarter of 2024 the Group breached the minimum cash level covenant for a short period as a result of a specific working capital phasing challenge. The bank were notified in advance and the Group actively managed cash during the period. The bank waived their rights under the breach. Based on budgets forthe period to December 2024 and the reforecast performed as part of this going concern assessment, 311 covenants are met and no further breaches are forecast. However, as a result of the continued cost of living crisis there continues to be increased uncertainty regarding the potential impact that this may have on visitor numbers and ultimate future cashflows. In the case of an adverse movement in footfall against budget there are a number of operating costs, particularly given the make-up of the Group's cost base, which can be flexed accordingly and, as was demonstrated during 2020 and 2021 there are number of other cost reduction mechanisms which management can apply which can be used to further reduce costs during a prolonged downturn. A reverse stress test has been perforrned which demonstrates that standard visitor number reductions of 1.2% can be borne without breaching the Group's covenants during the going concern assessment period. As part of the ordinary running of the business, a number of semi variable costs can be flexed and capital spend can be reduced in response to any downturn in visitor numbers to mitigate the impact of an income fall, increasing the fall which can be withstood to 1.5%. In the event of a more severe downturn, there are more significant actions which management could take reposttion the Group's cost base. The Trustees have assessed the financial position of the organisation, the forecasts described above and the mitigating actions available. The Trustees acknowledge that due to the continued risks with current economic uncertainty, as well further potential future downturns in the current economic climate, both of which are outside of management control, there is a plausible. adverse scenario that would be result in a case of non-compliance with banking covenants and that this constitutes a material uncertainty which may cast significant doubt on the Group's and CompanVs ability to continue as a Going Concern. However. given the existing mitigating factors and potential upsides to the budgets the Trustees are confident that the Group and Company can continue in operational existence to the end September 2025. The Trustees continue to adopt the going concern basis for the preparation of these financial statements and in preparing the financial statements they do not include any adjustments that would be required if they were prepared on a basis other than going concern. PLANS FOR THE FUTURE The launch of Twycross Zoo's Conservation Strategy 2023-2030 coincided with the appointment of a new permanent CEO and an overall refresh of the Zoos longterm strategy. A new executive team has been established during early 2024 with the appointment of a new Marketing Directorand Operations and Commercial Directorwhich, alongwith thewider Zoo team, has established a strategy which focuses on the Zoos animals, people, and guests. A significant review of the operational KPIS has been performed and the whole Zoo tearn is now aligned in one set of goals which both grow the Zoo in terms of revenue and cash generation, while also focusing on how these additional funds should be used to improve and broaden our conservation efforts while improving both customer satisfaction and staff welfare. Design and planning work is now well underway on the development of the National Science and Conservation Centre following a successful bid for Government levelling up funding which is due for completion in 2025. Page 11 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES (continued) RISK MANAGEMENT The Zoo has a formal risk management strategy in place to assess business risks acr055 the organisation. The Zoo continually reviews the major risks that it faces and has developed systems to monitor and control these risks to mitigate any impact they may have on the Zoo in the future. The principal risks and uncertainties facing the Zoo's ongoing success are: Risk Descrfption Impact I Consequence Mttlgaii( Downturn in the UK and l or Visitor number ieductKJn Ensure as many costs as wssiblÈ ¢an be flexed with visitor global economy adversely Loss of revenue numbers affectiro the UK tourist and leisurè industry Lack of finanang fa¢ililies Engage wilh a strcw targeted mathets.ng campaign Unable to invesl in Z(w)'s de¥ek)pr￿ Exploit Ihe drive lime markets progfamme Keep the Zoo exhibits refreshed Unable lo maintaTrn the currerbt Zrx) site Piowde Walue added- for Ihe ticket Frfi¢e Unable to maintsin 8ninal coll&iion Lose CO￿ staff . z￿ closure ts enffyced The Zoo does not retaln Zoo licence Maintain wuwe(I stsndards a5 d￿lated by the Zoo Licensing Carryort regular (le5ktop corn￿1an￿ revivws Ca vlar trainin Maintain an adequaie set level of working capital. Cash reserves forecasis are set aside to enable cash fli managetnent. Carry(AJl regularcash for￿sting of available cash lo (leierynine uale level5. Regular reviews ofcovenants Carri￿1 out anLI reported to Board and Committee Regular reviews of cash for￿S￿ng reported to Crynmittee Regular Debt ￿vieWS Carried out Profil proleclion [￿an moniloied Maintain strong worting relalK)nships with key banking partner tho n lines of communication Contract wth a "Clit￿81. partner to provide compliance assuran Ensure ad￿￿3t￿ H&S polrEs in pla￿ which a￿ imptemented Regular and approwiate H&S training for staff There are insu￿lent cash funds available lo cash flow the Zoo's business plan . The Zoo could be declared banknjpt ty unpaid credit Cash breached Covenants . ReputatiC￿al daM￿e wrth fund￿$ Not able lo ddrverlhe Zoo Devd0￿ent plan impacliro negalwety revenue Breach of Health & Safety slalulory regulations The Zoo Iwxe is revoked by the Lwal Aulhortty Investl9ation and Healih & Safety EX￿l￿e The Z(K) irturs Criminal charges and fina￿la1 IT infrastrt￿tu￿ is not adequale Io suptX)rt trle business 0￿ration There is a breakdown of ￿ equipm￿1 due lo age and l or inadequacy of the e4uiwnenl Breach of IT security of Ihe dats hekj and I loss of data Loss of revenue Reputational damage EngAJre sound and capable IT infraslruciure and supt)ort Ub"li5e irt-hoLtse aTrJ Outsour￿ Soluti￿ for growth and elivery Long lemi plann￿9 lo ￿place / upjrade solutions Take limety and regular system back-ups I replications appropriate to the data and operation PoI￿Y fordata Stora￿wh￿h is adhered lo including an"off-site- opi¢on. Freqtsenl "patching" with 'provider iwed. paiching to guard againsl unauthorised access D￿ÈlOp "reS￿lence. into the system to en￿￿ business conlinuty. Carry¢yJt annual SCqMThJ exercises to ensu￿ currenl IT irfrastructure is ad uate Review Board skill sets annually lo ensure appropriatenes$ and fft to strategic objectives carry￿11 regular Btsard trainFng in key Strategic a￿S Ensure iegular govemance updates Ensu￿ strateg￿ team have al leasl an annual strategy day to and develo strat lans and direclK)n Board Member5 and Exec Islralegic Team) will not have suff￿le￿I skill or experience to manage Ihe organisalion's affairs. D￿Slor$ made whrth are not thwght ihrough w¢th high quality rYJor damage the gani%alion's su5tainabilty and ￿pUla1￿. Twycross Zoo was issued with a full clean zoo licence by Hinkley and Bosworth Borough Council on 1st August 2024 and remains in force until 20th September 2030. Page 12 Twycross Zoo - East Mid land Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 REPORT OF THE TRUSTEES (continued) RELATIONSHIPS WITH OTHER CHARITABLE BODIES The Trust maintains active links and co-operates with other Zoos and animal wetfare bodies throughout the world in the furtherance of the Charity's aims and objectives. These include BIAZA {British and Irish Association of Zoos and Aquariums), EAZA {European Association of Zoos and Aquaria), WAZA (World Association of Zoos and Aquariums), IUCN {International Union for Conservation of Nature) and CPSG {Conservation Planning Specialist Group). RESERVES POLICY The Trustees aim to maintain free reserve5 in unrestrictedfunds at a level which equatesto approximatelythree months of unrestricted spending expenditure. The Trustees consider that this level has been met and will provide sufficient funds to respond to short term funding requirements and to ensure that support costs are covered. This aim has been maintained throughout the year. The balance held as unrestricted funds at 31 December 2023 was £17.8m (2022: £22.4ml, of which £1.2m12022: £1.2ml are regarded as free non-designated reserves, after allowing for funds designated for fixed assets and conservation welfare and the revaluation reserve. Restricted reseries are £3.5m12022: £3m). It is acknowledged by the organisation that it needsto maintain cash reservesthat cover operating costs for a minimum of 3 months, estimated at £1.5m. Cash and bank reserves at 31 December 2023 were £1.3m12022: £2.5ml which was a little less than needed forthe expetted level, howeverthis was driven by a short term working capital challenge which was known about, managed and resolved during the first quarter of 2024. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees has confirmed that they have taken all the steps that they ought to have taken as company directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. The Trustees, Report including the Strategic Report was approved on behalf of the board by: Rt Hon G W Hoon Chairman Date Iq{• Page 13 Twycross Zoo - East Mid land Zoological Society Limited Co No: 1060956 Registered Charity No- 501841 Year ended 310ecember 2023 STATEMENT OF TRUSTEES RESPONSIBILITIES The Trustees (who are also directors of Twycross Zoo-East Midlands Zoological Society Limited for the purposes of company lawl are responsible for preparing the annual report and the financial statements in accordance with applicable United Kingdom law and regulations. Company law requires the Trustees to prepare financia5 staternents for each financial year. Underthat lawthe directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl, including Financial Reporting Standard FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {"FRS 102,1. Under company law the Trustees must not approve the financial statements unle55 they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or Ioss of the group and the company for that period. In preparing these financial statements the Trustees are ￿qUired to- select suitable accounting policies in accordance Section 10 of FRS 102 and then apply them consistently; observe the methods and principles in the Charities SORP. make judgements and accounting estimates that are reasonable and prudent: present information, including accounting policies, in a manner that provides relevant. reliable, comparable and understandable information; provide additional disclosures when compliance with the specific requirements in FRS 102 is insufficient to enable usersto understand the impact of particulartransartions, other events and conditions on the group and company financial p051tion and financial performance; state whether applicable UK Accounting Standards. including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statement5. and prepare the financial statements on the going con￿rn basis unless it is appropriate to presume that the company and/ or the group will not continue in business. The Trustees are responsible for keeping adequate accounting records that are sufFicient to show and explain the charitable company's and group's transartions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the company and the group financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent charitable company and group and hence for taking reasonable steps for the prevention and detettion of fraud and other irregulartties. Under applicable law and regulations, the Trustees are also responsible for preparing a Trustees, report, that complies with that law and those regulations. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Page 14 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No.. 501841 Year ended 31 December 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TWYCROSS ZOO ZOOLOGICAL SOCIETY LIMITED EAST MIDLANDS Opinion We have audited the financial statements of Twycross Zoo- East Midlands Zoological Society Limited I'the parent charitll forthe year ended 31 December 2023 which comprise of the Consolidated Statement of Financial Activities, the Consolidated Group and Company Balance Sheets. the Consolidated Statement 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 Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Iunited Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and fairview of the state of the group's and the parent charitrfs affairs as at 31 December 2023 and of its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan￿ with International Standards on Auditing (UK) IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statement5 in the UK, including the FRC'S Ethical standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We draw attention to the Accounting Policies in the financial statements. which indicates that the Group's trading position and compliance with lender covenants may cast significant doubt on Group's ability to continue as a going concern. As stated in the Accounting Policies, these events or conditions, along with the other matters as set forth in thi5 note to the financial statements, indicate that a rnaterial uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. In auditing the financial statements, we have concluded that the directors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 15 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No.. 501841 Year ended 31 December 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TWYCROSS ZOO ZOOLOGICAL SOCIETY LIMITED {Continued) EAST MIDLANDS Other information The other information comprises the information included in the Trustees report. otherthan the financial statements and our auditorfs report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are ￿qUired to report that fact. We have nothingto report in this regard. Opinions on other matter5 p￿SCrIbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Report which includes the Strategic Report and Directors, Report prepared for the purposes of company law. for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Strategic Report and Directors, Report included within the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exeption In light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audr(, we have not identified material misstatements in the Strategic Report or Direttors, Report included within the Trustees. Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate and proper accounting records have not been kept, or returns adequate for our audst have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disc105ures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Page 16 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TWYCR05S ZOO ZOOLOGICAL SOCIETY LIMITED {Continued) EAST MIDLANDS Responsibilities of Trustees As explained more fully in the trustees, responsibilities statement set out on page 14, the trustees {who are also the directors of the parent charitable company for the purposes of company lawl are responsible forthe preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group and the parent charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS {UKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the group and the parent charity and its activities, we considered that noncompliance with the following laws and regulations might have a rnaterial effect on the financial statements: Charities Act 2011, the Charities Statement of Recommended Practice, employment regulation and health and safety regulation. anti-money laundering regulations. To help us identify instances of non-compliance with these laws and regulations. and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to- Inquiring of management and, where appropriate, those charged wtth governance, as to whether the group and the parent charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations. Inspecting correspondence, rf any, with relevant licensing or regulatory authorities; Communicating identified laws and regulations tothe engagement team and remaining alert to arsy indications of non-compliance throughout our audit: and Consideringthe risk of acts by the group and the parent charity which were contrary to applicable laws and regulation5. including fraud. Page 17 David Hoose (Sep 30, 2024 12:08 GMT+1) Sep 30, 2024 Twycross Zoo - East Mid land Zoological Society Limited Co No: 1060956 Registered Charity No- 501841 Year ended 31 December 2023 CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES (Incorporating Consolidated Income and Expenditure Account) for the year ended 31 December 2023 2023 2022 Notes Unrestricted Restricted Endowment Totsl Total INCOMING RESOURCES £'ooo £'ooo FROM GENERATED FUNDS Voluntary Donations & Gifts CHARITABLE ACTIVITIES Life Science, Education and Conservation Welfare Activities For Generating Funds Retail & Caterin8 Government Business Support Grants Interest Received TOTAL INCOMING RESOURCES 79 79 75 7,031 537 7,568 9,309 4.312 4,312 4,386 38 11,428 537 11.965 13,812 RESOURCES EXPENDED COST OF GENERATING FUNDS Retail & Catering CHARITABLE ACTIVITY Life Science, Education and Conservation Welfare 415 13.4191 13, 4191 13.1201 (12.5321 1931 112.6251 111,7541 GOVERNANCE COSTS 1761 116,027) 1761 {16,120} 1621 114,9361 TOTAL RESOURCES EXPENDED {931 NET (OUTGOINGIIINCOMING RESOURCES 14,599} 14,1551 11,1241 OTHER RECOGNISED GAINS Artuarial gain on revaluation of pension liability {81 181 146 NET MOVEMENT IN FUNDS FUND BALANCES BROUGHT FORWARD AT I JANUARY 14,6071 14,163} 19781 18119 22,389 3.038 loo 25,527 26,505 FUND BALANCES CARRIED FORWARD AT 31 DECEMBER 18119 17,782 3,482 loo 21,364 25,527 Income and net income for the year arise from the Group's continuing operations. No separate Statement of Total Recognised Gains and Losses has been presented as all such gains and losses have been dealt with in the Consolidated Statement of Financial Activities. Page 19 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 CONSOLIDATED GROUP AND COMPANY BALANCE SHEEr As at 31 December 2023 Group Companv Notes 2023 2022 2023 eooo 2022 £'ooo FIXED ASSETS Intangible Assets Tangible Assets Investments li 12 30 12 30 12 33.847 34.726 33,847 73 34.726 73 13 33.859 34,756 33,932 34,829 CURRENT A55ETS Stocks 14 235 322 Debtors 15 682 515 906 1,078 1,615 Cash at Bank & In Hand 1.306 2,462 673 2.223 3,299 1,580 2.697 CREDITORS- Amounts falling due within one year 16 14.4831 11.9081 14.367} 11,8331 NET CURRENT ASSETS 12,2601 1.391 12,7861 864 TOTAL ASSETS LESS CURRENT LIABILITIES 31.599 36.147 31,145 35,693 CREDITORS- Amounts falling due after more than one year Pension Creditor 17 {9,9631 {10,3671 19,9631 110,3671 25 12731 12531 1273) 12531 110,236) 110,6201 110,236) 110,6201 NET ASSETS 21,364 25.527 20,909 25,073 FUNDS Endowment Fund 18 i( loo 100 loo Restricted Funds 18 3.481 3,038 3,482 3,038 UNREsfRicfED FUNDS Designated Other 18 12,238 1.204 4,340 21,364 16.498 1.204 4.687 12,238 750 16,498 750 18 Revaluation Reserve 18 4,340 20.909 4,687 25,073 19 25,527 The standalone Company deficit, in the current and prior year, was equal to that of the Group. The financial statements on pages 19 to 46 have been approved bythe board and authorised for issue on and are signed on its behalf by: Rt Hon G W Hoon- Chairman u 4,,- fr[912o¥ Page 20 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 31 December 2023 Notes 2023 2022 CASHFLOWS FROM OPERATING AcfiviTIES £'ooo £'ooD NET CASH PROVIDED BY OPERATING ACTIVITIES 22 1.053 855 1,053 855 CASH FLOWS FROM INVESTING AcfiviTIES Cash paid to acquire intangible and tan8ible fixed 355ets 11.023) 12,5351 11,0231 12,5351 CASH FLOWS FROM FINANCING AcfiviTIES Net cash inflows from new bank borrowing5 Interest paid Repayments of bank borrowings and repayment of principal amounts of finance leases and capital creditors {8121 14681 13741 12841 NET CASH PROVIDED (USED INIIBY FINANCING ACTIVITIES 11.1861 17521 Decrease in cash and cash equivalents 22 11,1561 12,4321 Cash and cash equivalents at I" January 2.462 4,894 CASH AND CASH EQUIVALENTS AT THE 315t DECEMBER 22 1.306 2,462 Page 21 Twycross Zoo - East Midland Zoological Society Limited Co No.. 1060956 Registered Charity No: 501841 Year ended 31 December 2023 ACCOUNTING POLICIES BASIS OF ACCOUNTING Twycross Zoo- East Midland Zoological Society Limited is a charitable company and a public benefit entity. Therefore, other than the revaluation of the zoo's land and buildings. the financial statements have been prepared under the historical cost accounting rules. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes and are in accordance with applicable accounting standards, 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 IFRS 1021 (effective l January 2015) (Charities SORP {FRS 1021}, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, and the Companies Act 2Crf)6. As permitted by section 408 of the Companies Act 2006 the incorne and expenditure account of the parent company has not been separately presented in the financial statements. The financial statements are presented in thousands 1£). BASIS OF CONSOLIDATION The group financial statements consolidate the financial statements of the company and its subsidiary undertaking on a line by line basi5 using acquisition accountin& eliminating intercompany balances and transactions. The financial statements are presented in the form of Group financial statements. GOING CONCERN The Group has net current liabilities of £2,260k (2022- net current assets of £1,391kl. This is in large part due to deferred income as a result of the annual ticket, without which net current assets would be £44k. In determining whether the Group's annual financial statements can be prepared on a going concern basis, the Trustees have considered the Group's business activities, together with the factors likely to affect its future development. performance and position, including the impact of the cost of living crisis and high inflation rates in the UK. The review also includes the financial position of the Company and the wider Group that the Company is part of, their short term and long-term cash flow5, liquidity position and borrowing facilities. The going concern assessment covers a period to the end of September 2025. representing more than 12 months from the date of signing the accounts. The base case projections are based upon a reforeca5t of the budget for 2024 and 2025 which have been approved by the Board of Trustees. The key factors considered by the Trustees in making the assessrnent of going concern were as follows: Prudent financial planning assumptions to ensure resources are directed towards critical activities. For example, potential upsides from activity such as donations made to the Group and from other on&off activities which are planned are excluded from the budget. Building on the positive trading experience following the change in pricing and marketing strategies in Summer 2023 with yields continuing to improve. The implications that social and economic conditions may have the Group's revenues and profits driven by the cost of living crisis and high cost inflation. The uncertainty over future changes in the Bank of England interest rates, to which the interest on the £5.7m loan facility with an extended termination date of December 2039 and the £4.3m Coronavirus Business Interruption Loan ICBILI is bound. The Group breached one of their banking covenants in the first two quarters of 2023 which was notified to the bank. Following detailed discussions around the reasons for breach and the Group business plan, the bank waived these breaches. Given a challenging start to 2023 and the accounting implications of the new annual ticket the Group's banking partner agreed to reset the profitability based covenant such that it is next tested at 30 September 2024, to allow for a full 12 months of earnings of the new ticket. The minimum cash covenant was increased to account for higher levels of Bank of England base rates and the Group committed to testing the cashflow based covenant on a quarterly basis to provide further comfort around cash control. The changes are a further demonstration of the banks continued support for the Group. Page 22 Twycross Zoo - East Midland Zoological Society Limited Co No.. 1060956 Registered Charity No: 501841 Year ended 31 December 2023 ACCOUNTING POLICIES (continued) During the first quarter of 2024 the Group breached the minirnum cash level covenant for a short period as a result of a specific working capital phasing challenge. The bank were notified in advance and the Group actively managed cash during the period. The bank waived their rights under the breach. Based on budgets for the period to December 2024 and the reforecast performed as part of this going concern assessment, all covenants are met and no further breaches are forecast. However, as a result of the continued cost of living crisis there continues to be increased uncertainty regarding the potential impact that this may have on visitor numbers and ultimate future cashflows. In the case of an adverse movement in footfall against budget there are a number of operating costs, particularly given the make-up of the Group's Cost base, which can be flexed accordingly and, as was demonstrated during 2020 and 2021 there are a number of other cost reduction mechanisms which management can apply which can be used to further reduce costs during a prolonged downturn. A reverse stress test has been performed which demonstrates that standard visitor number reductions of 1.2% can be borne without breaching the Group's covenants during the going concern assessment period. As part of the ordinary running of the business, a number of semi variable costs can be flexed and capital spend can be reduced in response to any downturn in visitor numbers to mitlEate the impact of an income fall, increasing the fall which can be withstood to 1.5%. In the event of a more severe downturn, there are more significant actions which management could take reposition the Group's cost base. The Trustee5 have assessed the financial position of the organisation, the forecasts described above and the mitigating actions available. The Trustees acknowledge that due to the continued risks with current economic uncertainty, as well further potential future downturns in the cUr￿nt economic climate, both of which are outside of management control, there is a plausible, adverse scenario that would be resuEt in a case of non-compliance with banking covenants and that this constitutes a material uncertainty which may cast significant doubt on the Group's and Company's ability to continue as a Going Concern. However, giventhe existing mitigating factors and potential upsides to the budgets the Trustees are confident that the Group and Company can continue in operational existence to the end September 2025. The Trustees continue to adopt the going concern basis for the preparation of these financial statements and in preparing the financial statements they do not include any adjustment5 that would be required if they were prepared on a basis other than going concern. INCOME Income is recognised when the charity has entitlement to the funds; any performance conditions attached to the itemlsl of income have been met; it is probable that the income will be re￿Ived. and the amount can be measured reliably. Income from government and other grants. including financial support through Coronavirus Business Interruption Loans and the Coronavirus Job Retention Scheme, whether 'capital' grants or 'revenue' grants, is recognised when the charity ha5 entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably. Income from gate admissions is recognised at point of entry. Income from the sale of annual passes is deferred and recogni5ed evenly over the period that the pass is valid. Income from legacies is recognised at the point of receipt. DONATED SERVICES AND FACILITIES Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated rtern have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP {FRS 1021, the general volunteer time is not recognised and refer to the trustees, annual report for more information about their contribution. Page 23 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 ACCOUNTING POLICIES (continued) On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market. a corresponding amount is then recognised in expenditure in the period of receipt. FUND ACCOUNTING Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set asidè to use for specific purpose. Restritted funds are donations which the donor has specified are to be 501ely used for particular areas of the Charity's work or for specific artistic projects being undertaken by the Charity. EXPENDITURE Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is included in the Statement of Financial ActÉvities on an accruals basis net of value added tax. Expenditure is classified under the following activity headings: Costs of raising funds are those costs incurred in the trading activities of the retail and catering functions. Expenditure on charitable activities includes Costs associated with animals, education and conservation and includes both the direct costs and sVPPOrt costs relating to these activities. Support costs include central functions that assist the work of the chartty but do not direttly undertake charitable activities. Support costs include back office costs. finance, personnel, payroll and governance costs which support the Zoo's activities. Support costs have been allocated to activity cost categories on a basis consistent with the use of resour￿5. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. INTANGIBLE FIXED ASSETS AND AMORTISATION Intangible fixed assets are stated at historical cost less accumulated amortisation. Amortisation is provided to write off the cost less the estimated residual value of intangible fixed assets over their estimated useful lives as follows: IT softwar 10%- 33% per annum TANGIBLE FIXED ASSETS AND DEPRECIATION The zoo's land and buildings has been revalued at adjusted depreciation replacement cost as at 31 December 2021, excluding assets under construction. The revaluation was conducted in accordance with FRS102 guidance in order to reflect more accurately the value of Land and Buildings assets owned by Twycross Zoo. The net difference between the written down value and the revaluation as each point in time has been recorded within the revaluation reserve. The difference between the depreciation based on the revalued carrying value and the depreciation based on the original cost is released from the revaluation reserve to other unrestricted funds each year. All other f ixed assets are held at historical cost. Page 24 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 ACCOUNTING POLICIES (continued) Depreciation of fixed assets are charged by equal annual instalments commencingwith theyearof acquisition at rates estimated to write off their cost. Assets in the course of construttion are disclosed separately at a value equal to costs incurred to date. Once completed. they are reclassified and depreciated usingthe Group's depreciation policy below. No residual values are typically considered. Zoo's freehold land and buildings revalued as at 31112/2021 Tools, plant and equipment Furniture and equipment Motor vehicle IT equipment Variable dependant on component's life -10%- 20% per annum -10%- 25% per annum -10%- 20% per annum -33%- 50% per annum Assets in the course of construction are transferred to the relevant asset category on the date of completion and depreciated from that date. IMPAIRMENT The carrying amounts of assets are reassessed when impairment indicators are present. An impairment loss would be recogni5ed tothe extent the carryingamount of an asset exceeds its estimated recoverable amount. The estimated recoverable amount is reviewed at subsequent balance sheet dates where further information is available. STOCKS Stocks are valued at the lower of cost and net realisable value. Net realisable value is based upon estimated selling price less costs of disposals. DEBTORS Trade and otherdebtors are recognised at the settlement amount due afteranytrade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. CASH AT BANKAND IN HAND Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. CREDITORS AND PROVISIONS Creditors and provisions are recognised where the charity has a present obligation re5uEting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at theirsettlement amount after allowing for any trade discounts due. FINANCIAL INSTRUMENTS The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are inttially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ZOO ANIMALS Most of the Zoo's animals are part of international breeding programmes and are.on loan" and as such, are not owned by Twycross Zoo. No valuation is made of the animal collettion at the end of each year. Where appropriate. purchases and sales appear in the financial statements as revenue items in the year in which they arise. Page 25 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 ACCOUNTING POUCIES (continued) LEASED ASSETS Where asset5 are financed by leasing agreements that give rights approximating to ownership I'finance leases"}, the assets are treated as though they had been purchased outright. The amount capitalised is the present value of the minimum lease payments during the lease term. The corresponding leasing commitments are shown as obligations to the lessor. Lease payments are treated as consisting of capital and interest elements and the interest is charged to the Statement of Financial Attivities (SOFA} based upon the effective interest method. TAXATION The charity is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or Section 252 of the Taxation and Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Its trading company usually donates the whole of its taxable profrts to the Society each year, and tax relief is granted on the transfer if it is completed in compliance with current tax legislation. RETIREMENT BENEFITS The Charity runs a stakeholder pension scheme. The amount charged in respect of pension costs is the employerfs contributions payable for the year. The pension scheme is a defined contribution scheme. The Company has put arrangements in placevia an Employer Financed Retirement Benefttsscheme {EFRBSI foran ex-employÈe with a pension entitlement contained within their employment contract. The Companvs obligations under this EFRBS will not be funded, however they will constitute liabilities of the Company payable when due and therefore are disclosed in the CompanVs accounts. INVESTMENTS Investments in the compan￿$, accounts relate to holdings in its subsidiary and are carried at cost. RECOGNITION OF LIABILITIES Liabilities are recognised when there is a legal or constructive obligation. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS Estimates and judgements are based on historical experien￿ and other factors, including expectation5 of future events that are believed to be reasonable under the circumstances. The zoo's land and buildings are revalued at adjusted depreciation replacement cost which relies upon estirnates around both the value of land in the current market as well as estimates around cost to replace the building assets held. These valuations are based on valuations performed by an independent valuation expert and ultimately approved by the Trustees. As all tangible f ixed assets are carried at either cost less depreciation or revaluation less depreciation, there is also a critical estimate associated with the useful economic lives associated with those assets. The estimation of useful lives is based on certain indicators such as historical experience with similar assets as well as anticipation of future events, which may impact the lives. such as changes in technology. The useful lives will also depend on the future performance of the assets as well as managemenys judgement of the period over which economic benefits will be derived from the assets. Page 26 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 ACCOUNTING POLICIES {continued) The Company provides catering in partnership with a third party provider and as such is required to considerwhether it is principal or agent in the transaction. Having considered the various factors set out in FRS 102 Section 23 Revenue, the Company is considered to be acting as principal for transactions under the contract with the third party- This is primarily driven by the fart that the Company is exposed to 82.5% of the result and is therefore exposed to most of the risks and rewards of the activity. Furthermore. as the end customer is not likely to consider themselves as purchasing from an agent it is likely any poor perfomiance on behalf of the third party would have a negative impact on the reputation of the Company, further exposing the Company to risks around performance. As a result of this judgment, caterinE is disclosed as income of £2.473k12023- £2,375k) and £2,055k {2023: £1,805} of costs. If the Company had concluded it was an agent these figures would be disclosed net. There would be no net impact on profitability of the balance sheet position. The defined benefit obligation is accounted for using a method that relies on actuarial assumptions to estimate the liability for inclusion in the financial statements. These actuarial assumptions include discount rates, inflation rate and mortality rates. Page 27 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTESTO THE ACCOUNTS I. COMPARATIVE SOFA CONSOUDATED STATEMENT OF FINANCIAL A￿1VITIEs (Incorporating Consolidated Income and Expenditure Account) for the year ending 31 December 2022 2022 Unrestricted £'ooo Restricted £'ooo Endowment £'ooo Total £'ooo INCOMING RESOURCES FROM GENERATED FUNDS Voluntary Donations & Gifts CHARITABLE ACTIVITIES Life Science, Education and Conservation Welfare 75 75 8.898 411 9.309 Activities For Generating Funds Retail & Catering 4,386 4.386 Government Business Support Grants 38 38 Investment Income TOTAL INCOMING RESOURCES RESOURCES EXPENDED 13,401 411 13,812 COST OF GENERATING FUNDS Retail & Catering CHARITABLE AcfiviTY Life Science, Education and Conservation Welfare {3,1201 13,1201 (11,655} 199) 111,7541 GOVERNANCE COSTS (62) 1621 TOTAL RESOURCES EXPENDED 114,837) 1991 114.936) NET INCOMING/IOUTGOING} RESOURCES (1.4361 312 (1,1241 Other recognised gains and losses Actuarial loss on revaluation of pension liabilty Gain on revaluation of fixed assets 146 146 NET MOVEMENT IN FUNDS 11,2901 312 {9781 FUND BALANCES BROUGHT FORWARD AT I JANUARY FUND BALANCES CARRIED FORWARD AT 31 DECEMBER 23,679 2. 726 ICM) 26,505 22.389 3,038 100 25,527 Page 28 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS {continued) 2. DONATIONS AND LEGACIES 2023 2022 £'ooo Donations & Gifts Legacies 16 29 63 46 79 75 3. CHARITABLE AcfiviTIES Life Scien￿. Education and Conservation Welfare 2023 2022 £'ooo Unrestricted Income Gate Admissions and Donations Gift Aid Membership and adoptions Educational visits 5,170 762 7,596 241 508 32 559 14 Other Income 407 7.031 8,898 Restricted Income Research and Conservation Grants 537 411 7,568 9,309 Page 29 Twycross Zoo - East Midland Zoological Society Limited Co No.. 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS {continued) R￿AlL AND CATERING Notes 2023 2022 £'ooo £'ooo Turnover 4,312 (2.9501 4,386 12,674) Cost of Sales Gross Profit 1,362 1,712 Administrative Expenses (9811 19891 Net Profit 381 723 Reconciliation to SOFA Cost of sales 2,950 2,674 Administrative Expenses 981 989 3,931 3,663 Less rent payable to parent 14911 15271 Less auditors renumeration analysed as governance costs 1211 1161 3,419 3,120 Turnover includes government support grants of Nil {2022 Nil}. Page 30 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 5. ANALYSIS OF TOTAL EXPENDITURE Lrfe Science, education and conservation welfare costs Retail & Catering Costs 2023 Total Costs 2022 Total Costs COSTS DIREcfLY ALLOCATED TO ACTIVITIES £'ooo Life Science 699 699 649 Building Expenses 2,310 2,310 2,154 Retail & Catering 2,950 2,950 2,674 Advertising & Pub5icity 1,163 1,163 1,347 Legal & Professional 193 194 433 2.951 4,365 7,316 7,257 SUPPORT COSTS ALLOCATED TO ACTIVITIES Staff Costs 449 3,775 4.224 3,656 Office Expenses 19 1,174 1,193 1,198 Irrecoverable Vat 570 570 493 Depreciation & amortisation 1,919 1.919 1,783 Finance Costs 822 822 487 468 8.260 8,728 7,617 2023 Totals 3,419 12,625 16,044 14,874 2022 Tot315 3.120 11,754 14,874 Page 31 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) NET INCOME 2023 2022 £'ooo Net income is stated after charging: Operating lease rentals plant and machinery Auditors, remuneration 58 42 for audit services for non-audit seNices- tax advice Depreciation of tangible fixed assets -leased assets -owned assets Amortisation of intangible assets 49 14 14 1.888 18 1,749 20 Cost of stock recognised as an expense 817 831 7. INTEREST EXPENDITURE 2023 2022 £'ooo Interest on bank loans and overdrafts Other bank, interest and finance lease charges Pension net interest expense (note 25) 764 437 35 43 12 811 487 Page 32 Twycross Zoo - East Midland Zoological Society Limited Co No.. 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 8. TAXATION 2023 2022 £'ooo Current tax: U K corporation tax on profits of period Factors affecting tax charge for the period The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Profit on ordinary activities of Zoo Park (Twycrossl Ltd 381 723 Tax at 25% on profit Effert of distribution of profits to parent charity under gift aid 95 137 {95) 11371 Corporation Tax Factors affecting tax charges in future years Following on from the Budget in March 2021 the tax rate is to rise to 25% from l April 2023. There are no current planned changes to the tax rate atthe time of signing. As the Company has no deferred tax balances there is not expected to be any impact of this change on the balance sheet. Page 33 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 9. DIREcfoRS AND EMPLOYEES DIRECTORS AND EMPLOYEES Group staff costs: 2023 2022 £'ooo Wages and salaries Social security Costs Pension costs 3,798 321 3,297 273 129 154 4,273 3.699 Higher paid employees Salary Range 2023 2022 £200,000 - £210,000 £140,999 - £150,000 £IOO,O(M)- £109.000 £90,000 - £99,999 £80,000- £89,999 £70,000 - £79,999 £60,000- £69,999 2022 . Highest paid employee includes gross pay of £88k, plus payments for loss of office of £119k. Pension and National Insurance Contributions of £56k12022: £124kl were paid in respect of all higher paid employees, of which £20k {2022.. £59kl relates to the highest paid employee. Average monthly number of employees, based on headcount, including directors. 2023 2022 Average monthly number of employees, based on head count including directors:_ Education Resources No. 23 21 Visitor services Retail 65 56 29 31 Keepers Vets 52 52 183 169 Page 34 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 10. TRusfEES Ordinarily all Trustees givetheirtime freely, with the exception of out of pocket expenses which wasthe case in 2023. However, in 2022 D. Meek received £4,9LK) for services over and above his normal Trustee duties before progressing to an executive role and takin8 over as interim CEO. H. Mitchell also received £700 in 2022 for one off services over and above her normal Trustee duties). No further remuneration was paid to the Trustees, and none are accruing benefits under pension schemes. During the year, three (2022: six) Trustees were reimbursed expenses of £685.85 {2022: £2,567}, relating to travel and accommodation costs. The key management personnel of the group comprise those having authority and responsibility, delegated to them by the Trustees, for plannin& directing and controlling the activities of the charity. Remuneration for key management personnel, including pension and employer's national insurance contributions amounted to £361k12022.' £806k}. IT Software £'o 11. INTANGIBLE ASSErs Total £'ooo Cost 1st January 2023 Additions 148 31st December 2023 148 148 Amortisation 1st January 2023 Charge for the year 118 118 18 18 31st December 2023 136 136 Net Book Value 31st December 2023 12 12 31st December 2022 30 30 Page 35 t > > o) iu T5 rLzs £ tD o £ ¢11 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 13. INVESTMENTS COMPANY 2023 2022 £'ooo £'ooo Investment in Subsidiary Company 73 73 The company owns 9,600 £1 ordinary shares in Zoo Park (Twycrossl Limited {"Zoo Park ) (company number 709915) being the whole of the issued share capital of that company. Zoo Park (Twycrossl Limited 15 incorporated in, and operates in, the Untted Kingdom, its registered office being the same as the parent company. Its principal activity is the provision of catering and leisure services. Zoo Park'5 turnoverfor the year is £4,312k {2022: £4,398k) and its expenditure is £3,931k12022: £3,675k}. The Trustees consider that the underlying value of Fts investment in the subsidiary company is not materially different to its cost of £73k. The subsidiary company has a payable of £Nil12022: £248k>, under gift aid to the parent company. The subsidiary company's retained profit for the financial year is £nil {2022: £nil) and its capital and reseNes at 31 December 2023 are £527k12022: £527kl. 14. STOCKS Group Company 2023 2022 2023 2022 £'ooo Giftshop & Guides 235 318 Spares for Operations 235 322 Page 37 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No- 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 15. DEBTORS Group Company 2023 2022 £'ooo 2023 2022 £'ooo Amounts owed by subsidiary 359 663 Trade debtors 34 56 34 55 Other debtors 408 208 277 109 Prepayments & accrued income 240 251 236 251 682 515 906 1,078 Included within other debtors are VAT receivables of £33k12022". £99kl. 16. CREDITORS: Amounts falling due in less than one year Group Company 2023 £'ooo 2023 2022 2022 £'(M)O £'ooo CBIL loan 109 78 109 78 Bank loans Finance leases Trade creditor5 Other taxation & social security Accruals & deferred income 160 158 29 160 158 29 298 524 303 475 71 68 71 68 1,076 126 3,485 129 1,146 126 3.418 129 Capital creditor 4.483 1,908 4,367 1,833 Included within tax and social security are pension contributions of £3k {2022." £lk). Included within accruals is deferred income relating to the sales of annual membership passes. The value of memberships included in income earned from charitable activities duringthe current year is £480k12022: £640kl and the amount deferred is £133k {2022: £461KI. Deferred income from annual ticket sales is £2,464k12022: £Nill. Page 38 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 17. CREDITORS: Amount5 falling due in more than one year Group Company 2023 2022 2023 £'ooo 2022 £'ooo CBIL LOAN Finance Lease Obligations Bank Loans Capital Creditor 4,114 4,221 4,114 4,221 5,218 631 9,963 5,378 760 10,367 5,218 631 9,963 5.378 760 10.367 Bank loans relate5 to £5,700k borrowed from Metro bank in 2019 at a rate of 3% above the Bank of England base rate. The 3verage rate of interest on this loan during the year was 7.54%12022: 4.16%}. In 2019 interest payments of £88k were suspended and added to the principal borrowed. Monthly capital repayments commenced in June 2022 with final payrnent due in 2039. In March 2021 the company borrowed £4,300k from Metro Bank with capital repayment commencing in March 2023 at a rate of 3.50QA above the Bank of England base rate. The interest on this loan was covered by a COVID Business Interruption Support Grant for the first 12 months. The amount of grant received in the year was £Nil 12022: £38kl. The final payment will be made in 2027. The average rate of interest on this loan during the year was 8.04% {2022.' 3.73%). Capital creditors relate to the debenture against the tiger enclosure held by Wates Property Services Limited. This financing arrangement was entered into in July 2019. with the final payment due in June 2029. The average interest rate on capital creditors during the year was 3.0% (2022. 3.0%) The Group breached one of their banking covenants in the first two quarters of 2023 which was notified tothe bank. The bank reseNe their rights under the existing agreements, however, given a challenging start to 2023 and the accounting implications of the new annual ticket the Group's banking partner has agreed to reset the profitability based covenant such that tt is next tested at 30 September 2024, to allow for a full 12 months of earnings of the new ticket. The minimum cash covenant was increased to account for higher levels of Bank of England base rates and the Group committed to testing the cashflow based covenant on a quarterly basis to provide further comfort around cash control. The changes are a further demonstration of the banks continued support for the Group. During the first quarter of 2024 the Group breached the minimum cash level covenant for a short period as a result of a specific working capital phasing challenge. The bank were notified in advance and the Group actively managed cash during the period. The bank waived their rights under the breach. MATURITY OF LOANS & BORROWINGS AND CAPITAL CREDITORS Group Company 2023 £'(K)O 2022 2023 2022 £.￿0 £'ooo Under one year Between two and five years Over five years 398 362 398 5,475 4,488 10,361 362 5,475 4,488 10.361 5,515 4,841 10,721 5.515 4,841 10,721 Page 39 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continuedl 18. FUNDS ENDOWMENT FUND £'ooo 100 l January 2023 and 31 December 2023 UNRESTRICTED FUNDS Group Company 2023 £'o( 2022 2023 2022 £'ooo Designated Funds ljanuary 16,498 17,441 16.498 17,441 Transfer from Designated funds to Other Unrestricted Funds (4,260) (943) 14,2601 1943} 31 December 12,238 16.498 12.238 16,498 Fixed Assets 10,871 15.131 10.871 15,131 Conservation Welfare 1.367 1,367 1,367 1.367 12,238 16,498 12,238 16,498 The ConseNation Welfare Fund is to provide grants to wildlife conservation andlor welfare projects. During 2019, the Trustees implemented a policy to establish a designated fund relatingto tangible fixed assets. Establishing this designated fund reflects the Group's net assets are largely attributed to capitalised tangible fixed assets, which do not provide free funds which are available for use. The policy requires that an amount which equates to approximately three months of unrestricted spending expendtture is maintained in free reserves and is not designated. The carrying value of tangible fixed assets at 31 December 2023 was £33,847k {2022: £34,716kl, see note 12. A reconciliation between total funds and the significant components of net assets is provided in note 20. During 2023 £4,260k have been transferred to"Other Unrestricted Funds" from "Designated Funds" 12022: £1,292k transferred to "Other Unrestricted Funds from "Designated Funds"), resulting in total "Other Unrestricted Funds" of £1,204k and £750k for the Group and Company respectively 12022- £1,204k and £750kl. Page 40 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) Note 18 (Continued) Revaluation Reserve Group Company 2023 £'otK) 2022 2023 2022 £'ooo ljanuary 4,687 5,034 4,687 5,034 Revaluation during the year Annual Transfer from Revaluation Reserve to Other Unrestricted Funds {347) (347) 1347) 1347) 31 December 4,340 4,687 4,340 4,687 Other Unrestricted Funds Group Company 2023 2022 2023 2022 £'ocrf) £'ooo l January 1,204 1,204 750 750 Net surplus for the year Actuarial Gain on revaluation of pension liability Transfer from Revaluation Reserve 14,599) (1,436) 14,5991 {1,4361 {8) 146 {81 146 347 347 347 347 Transfer from Designated Funds- Fixed Asset5 4.260 943 4,260 943 31 December 1,204 1,204 750 750 Total unrestricted funds 17.782 22,389 17.328 21,935 Page 41 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) Note 18 (Continued) RESTRICTED FUNDS Group Company 2023 2022 2023 £'ooo 2022 £'ooo 1st January 3,038 2,726 3,038 2,726 Income in the year 537 411 537 411 Expended in the year (93) 1991 (931 1991 31st December 3,482 3,038 3,482 3,038 1st January 2023 31st December 2023 £'ooo Income £'ooo Expenditure £'ooo Himalaya 2.125 75 2.050 Changing Places Grant 49 47 LLEP SME Growth Fund 460 14 446 International Zoo Management Project National Science and Conservation Centre INSCCI 403 535 938 Other 3,038 538 94 3,482 Page 42 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) Note 18 (Continued) Himalaya Twycross Zoo was awarded a grant of £3,OOOk by the East Midlands Development Agency towards the construction of a new visitor welcome centre. 'Himalaya' is a landmark project for the East Midlands region. The value of the building is held in Fixed Assets and the fund is amortised over the buildings estimated useful life. Changing Places Grant Fund The Changing Places Grant Fund was provided to fund some specific capital expendtture incurred during 2018 and is being amortised over its useful life. LLEP SME Growth Fund The Zoo Development Fund represents amounts received from Leicester and Leicestershire Enterprise Partnershipto supportthe Trustees, master plan to develop the zoo infrastrutture, The funds were expended on fixed assets during the 2015 financial year. The fund is amortised over the estimated useful life of the assets. International Zoo Management Projert This is an Erasmus+funded programme dedicated tothedevelopment of higher-leveltraining in international zoo management. The project brings together the zoo with the higher education sector to develop a structured training programme that blends the applied/experiential-based knowledge of the zoo sector with the rigour of Higher Education-based pedago8y and research. The outcome will be a defined training curriculum incorporating three specific training modules that target International zoo welfare and management, International management of zoo-based conservation. and ethical and legal issues with international zoo management. National Science and Conservatton Centre Following a successful bid for government levelling up funding, Twycross Zoo has secured funds for the National Science and Conservation Centre. which is due for completion in 2025. Design and planning work is now underway for which £403k of funds were received within the year. 19. RECONCILIATION OF FUNDS Group Company 2023 2022 2023 £'ooo 2022 £'ooo (Deficit) for the year Actuarial gains on revaluation of pension liability {4,1551 (1.124) (4,155) 11,124) (81 146 {81 146 Gains on revaluation of fixed assets Openingfunds 25,527 26,505 25,073 26,051 Closing funds 21,364 25,527 20,909 25.073 Page 43 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 20. ANALYSIS OF NET ASSETS BEfwEEN FUNDS Unrestricted Funds Restricted funds £'ooo Endowment fund £'ooo Total £'ooo Intangible fixed assets (note 111 Tangible fixed assets {note 12) Cash at bank and in hand Other net current assets/lliabilities} Long term liabilities (note 17) 12 12 30.266 1,306 13,5661 110,2361 3,482 loo 33,848 1,306 13,5661 110,236) 17,782 3,482 loo 21.364 Restrirted funds Endowment fund Unrestricted Funds Total 2022 £'ooo Intangible fixed assets (note 11) Tangible f ixed assets (note 12} Cash at bank and in hand Other net current assets/(liabilitiesl Long term liabilities (note 171 30 30 31,588 2,462 {1.071) (10,620) 3,038 loo 34,726 2,462 11,0711 110,6201 22,389 3,038 loo 25,527 Page 44 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 21. GUARA￿rEEs AND OTHER FINANCIAL COMMITMENTS Operating lease obligations are shown below. 2023 2022 £'ooo Under I year Between 1-5 years 74 82 109 32 There were no other guarantees or financial commitments at 31 De￿mber 202312022: £nil). 22. CASHFLOW RECONCILIATION OF NET INCOME TO NET CASHFLOW FROM OPERATING A￿1VITIEs 2023 2022 £'ooo Net {outgoing} resources Depreciation & amortisation Amortisation of loan arrangement fees Interest expense Movement in stocks {4,1551 1,920 12 11,1241 1,783 12 812 487 88 (1671 2,543 11871 {1981 82 Movement in debtors Movement in creditors 1,053 855 22 (b) Analysis of movement in net debt Interest and finance Charges 31 December 2023 l January 2023 Cash Flows £'ooo £'ooo Cash and cash equivalents 2,462 11,156) 1,306 Loans 19,836) 999 1764) 19,6011 Finance lea5e5 {37) 35 13) 151 Capital creditors {886) 150 {24) 17601 Net Debt 18,297) 28 1791) {9,0601 Pa8e 45 Twycross Zoo - East Mid land Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 23. RELATED PARTY TRANSACTIONS The CharÈty owns the whole of the issued share capital of Zoo Park (Twycross) Limited { Zoo Park") Transactions with Zoo Park were as follows: 2023 £'ooo 2022 £'ooo Zoo Park profit gtft aided to parent 381 723 Intercompany rent and other recharges 491 527 Intercompany Purchases from Zoo Park 1121 As at 31 December 2023 Zoo Park (Twycross) Limited owed the parent company £358k12022: £663k). 24. CONTINGENCIES There are no contingent liabilities at the 31 De￿rnber 202312022: £ niS). Page 46 Twycross Zoo - East Midland Zoological Society Limited Co No: 1060956 Registered Charity No: 501841 Year ended 31 December 2023 NOTES TO THE ACCOUNTS (continued) 25. PENSION LIABILITIES The Company has put arrangements in place via an Employer Financed Retirement Beneflts Scheme IEFRBSI for an ex-employee with a pension entitlement contained within their employment contract. The Company's obligations under this EFRBS will not be funded. howeverthey will constitute liabilities of the Company payable when due and therefore are disc105ed in the Companrfs accounts. Principal actuarial assumptions at the balance sheet date Yearto 31 December 2023 2022 4.50% 4.80% nla nla n/a n/a S3PXA light table with future improvements in line with the CMI 2021 projection model were used with a long term trend rate (LThR) of 1.5% pa (2022: 2021 projection model, with LThR of 1.5%) Discount rate RPI price inflation CPI price inflation Mortality (pre and post-retirementl The amounts recognised in the statement of financial position EFRBS unfunded Liability £'ocK) £'ooo 273 253 The amounts recognised in the statement of financial activities £'ooo Net Interest Cost 12 The amounts recognised in the statement of other comprehensive income Actuarial gain/(loss) on EFRBS Unfunded Liability £'ooo £'ooo 18) 146 Increase in Liability 2022 £'ooo Sensitivity analysis 2023 Discount rate decreased by 0.1% Life expectancy increased by one year The above sensitivity analysis is based on isolated changes in each assumption whilst holding all other assumptions constant. In practice, that is unlikely to occur and there is likely to be some level of correlation between the movements in different assumptions. For the year ended 31 De￿mber 2023, the total amount of actuarial re-measurement gain recorded in Other Recognised Gains/{Lossesl lother comprehensive income) was 1£8lk {2022: £146kl. The net interest expense recognised in Total Expenditure was £12k12022: £7kl. Page 47