Docusign Envelope ID.. DOD16E04oe2E_4429_95AB_D4EFDEF712E8 Company r¢gistration nuLnb¢r: 01397038 Charity registration number; 508300 Heritage Trust For The North West (A ¢ompany limil¢d by guarant¢¢) ArJL)ual Rep()rt and Fin￿1¢1a1 Statements for the ye￿ Bnd¢d 31 2024 R&wclilYe & Co Limited Unil l Barons Court Gra¢¢way$ Whitehills Busin¢ss Park Blackpool Lancashlrc ry4 SGP Docuslgn Envèlope ID,, DOO16E04-062E442￿o5A￿.￿4EFDEF7l2E6 Heritage Trust For The North West Contents Reference end Administrativ¢ D¢tilL15 Strategi¢ Report 2to3 Trustees, Report 4t07 Independent Auditors, Report 8toll Consolidated Statement ofFitMncial Activities 12to 13 Consolidated Balance Sh¢¢t 14 Balance Sheet 15 Consolidated Stat¢llLertt of Casb Flows 16 Stsiement of Cash Flows 17 Notes to the Financial Statements 18tt)47 Docuslgn Envelope ID.. Doo16ED4062E-442￿9sAB-D4EF0EF712E$ Heritage Trust For The North West Reference and Administrative Details Ch*irman Mr John Tirn¢r Chief Extcutlv¢ Officer Ms Blixabeth Moss Mr Michael Robert Guy Charity Registration Number 508300 CompADy Registration Number 01397038 Reglgtered Offi¢e Parli Hill Barroivford Nelson L&n¢aghire BB9 6JQ Auditor Rawcliffe & Co Limited Unit l Barons Court Graceways Whitehi115 Busincs8 Parl< Blackpool Lan¢ashire FY4 SGP Page I Docusign Envelope ID.. 0001eE04.062E.4429.95AB.D4EFDEF712E6 Heritage Trust For The North West Strategic Report for tbe Year Ended 31 March 2024 Th¢ Iruste¢3, who are dire¢torn for the purp05e3 of company taw, present th¢ir 5trat¢gio report for the year ended 31 March 2024, in compliance with s414C of the Companies Act 2006. Achievements and performance As A charitable trust responsibl¢ for the own¢rship andlor opeialiofta] management of over 20 h¢r11￿2 PTOP¢rties we work ¢lo$¢ly with p8rtn¢r or8atEiSations, fiind¢rs and stakeholders to m&xtmis¢ piiblic benefit. We are financially r¢lianl on ¢amed in¢om¢, as w¢ll as ¢haritable income, This is sourced from r¢lail, Catering. rental, visitoi. attraction5 and event￿ as well as grallls and donations. Our visitor allractions, such as L>tham Hftll and Pendle 14eritage CeJLtre, have bundreds of thous8JLds of visitors anuually. These sites greatly benefii the health and well-being of the vi3jtors and voluntsers support thein. To opErate these Properties we rely on staff working in various disciplines, includillg ME￿￿geIllent, ¢at¢rin8 and bospilality with voluTrteers supporting grounds maint¢twi¢e, st¢wardin8, ¢ons¢rvation gnd many otheT areas. HTNW has a proud history of h¢rits8e restoration projects and has emerged from the re¢ellt challenging years 'Rtl] a renewed energy and (ktern]ination, under new leaderstLiP. The strategi¢ focus has been and will remain on sustainable growth for the foreseeable futuie, With stronger found&tions w¢ will be able to better weather tulure storn]s. New accoiuLling £llid busine55 management procedures and policies are starting to provide the llllended benebls tmd difficult decisions on redundancies and property sales h&ve proven to be prudenL Money saved has been reinvested in the remaining properties lwd debt r¢duclion has been a key area of focLiS. The hlevemenls of HTNW tn this ar¢& d¢s¢rYe particular Lnenlion. At its peak in 2022 total debt was over £2m. Tbese accounts demonstrat a redu¢tion by approxiMat¢ly a third as at April 2024 and at the time ofpublication io De¢ember 2024 ttjey have fallen further by over a Iialf. This significant SllCCC53, ￿ollg with the expected fall ill intw¢st rg41es in 2025, will r¢leas¢ further funds for r¢llivestmenl over time. Two notable examples of this reinvesttnent at Lylham H￿1 Nvcrc the completion of a new Lnodern diainage sysieni, lo cope with ihe demands orsuch a popu￿. site, and thc opening of the resttored G&te Holis¢ as holiday cci)mmodation, The later has pi'oved extstmely popular and SL}ccess￿l in terms of bookings and ¢arned income. Pendle Heritage Ccntre continued its development into a more div¢rse and profitable attractLOII welcoming a wider range of visitors, tenants and i￿s. (hher properties too had all increase in occupatioii and use gLich as Higherford Mill. We are incredibly gralefid for tthe many voluntseIs, friends, groups and fwiders tliat lThve supported our work. aeross all ot our sites. Flnancial rcvicw Pollcy reserves Il Is It]e policy of the charity to in&int'ain unreslricled funds, which are fi'e¢ Teserves ot t.he charily, at levels which equate to an excess of its prujcbled needs for the forthcorning inonth£ thereby providing sufficient futsds tD cover inanagement, administration and supp)rt cosfs and ¢nable th¢ ongoing developrn¢nt of proje¢ts. The trusl¢es b¢li¢ve th¢ net asset position is suffi¢i¢nt ts satisfy such requ￿ernents. altlLough thcsc Icvels of free reserves are reviewed YeEiilarly. Page 2 Docuslgn Envelope ID: D0016E04-082E4429-95AB-D4EFDEF712E6 Heritage Trust For The North West Strategic Report for the Ye&r Ended 31 Ivlarch 2024 FHnds in deficit During the year ended 31st M￿ch 2024 (he iiicoming r¢sourc¢s amounted to £1,797,586 (wbich iepres¢nl¢d a decrease of £139.359 compared to the previous year) while resourc¢s exp¢nded a]noLinted to £1.978,753 (wbi¢h represented a dc¢r¢ase of £350 compared to the wevious year). The n¢t result for the ye&r was a deficit of £181,167 (2023 deficit £42.158). Im￿rtantlY, the Trustees note that althougli on the faee of it ibis1088 could be & cause for conc¢nL it WAS in tact trxpecled and even iTLtended. The financial year 2023124 was one of substantial change for IIINW as th¢ organisatioll, its staffing and ils pro￿rtY porfolio was restruclured alld rationalised. This was done in OTder to provide for a much more sustainable thture 8nd build the foulld&tions for long term growttL In particulai., tbe fa¢lors in 2023124 Ihat played a part in these losses include the following: l. Rationalis&tion of the extensive property portfolio with & nurnber of non ¢ss¢nlial lossmakit)g properties sold which resulted in one oft legal and other professional fees on all ihose sales. 2. The paytrtent of one oft TedUt￿ancY costs for a nLmiber of staff diat left the organisatioii, 3. A change of awounlants &nd auditors, both of whom were still f8miliarising thernselves with ￿rNw processes and fir)*n¢ial history. 4. The impleryLentatlDn of a new accountancy systern, ttansitioning fully from SAGE lo XBRO. 5. Writing off historic illaccurate amoiints that had been held in oiir &ccouNts for projects that w¢re now not goiii8 to h&ppeii. 6. Th¢ absence of a Chief Executive for three months ot the year and one off costs associated with the reGyuilm¢nt of the new one. 7. Development of cosi centres to enable a more fin3nci8Lly sustainable nianagement of our proptty portfolio. 8. Debt reduction priorilis¢d. 9. High inter¢sl, indation, insiwance at￿ energy costs. IQ, Losses due to closwe and reop¢nin8 aft¢r restriicturillg Pendle FIeritagc c¢t￿¢. I l. Poor weather atTccting visitor nwnbers and incom¢. 12, Covid recovery completed this y¢ar. Tlie su¢¢ess of this restructuring stratcgy 15 air¢ady evident to the Trustees and thc Chief Executive in the fjnancial manageM￿t information &v&il&ble to 2024125. In short 2023124 marked the turiiing point in H'FNW financtal p¢rfornian¢e. Principal riskn and uncertNlities Ecok70mic coo't of Ilving crigij The UK is ¢xperiencllW an e￿nomiC and cost of livillg crisis. The tnlgtecs continue to examin¢ tthe major strategic. business and operational risks M,hich Ibe chatty fa¢¢s at cotjfirm t￿￿t systems have been cstablishcd lo ensure It]al regular reports are produced and thut necessaiy st¢P3 can be tsken to address issu¢s arising. The Iruslers have id￿ltifIed Lhe major risks lo whlch the charity 18 expos¢d &id procedur¢s lo maTLage those risks have been put inplace. The strategic rewrt was approved by the trustees of die ch8Jity on 3 .lanuary 2025 and signed on its behalfby.. by.. Mr StephetL M&'k' Williams Trustre Pag¢ 3 Docuslgn Env&lop8 ID.. D0016E044%2E4429_Q5AB_D4EFDEF712E6 Heritage Trust For The Lyorth West Trustees, Report The tn￿te¢s, who are dir¢¢tors for th¢ purposes of ¢ompany law. present the annual report tog¢lher with the financial Stat￿￿entS and auditors, report ot the charitable company for tlie year ended 31 March 2024, Objectiv¢s Activitieb Objects und ulnis The principal activities of the cornpany are to promote (￿d preserve for the E¢nefit of the Feople of ti]e North West ot England Emd of the nation at large, wh&tever of the English bistoi'ical, architectural, nELtuial, social or scientific heritage which may exist in or near to the afoi'¢said regioij, and to advance Ibe education and the cultural deiieloprnent of th¢ publiG in th¢5¢ tnattcrs, and to und¢rtake sucb otlier eh8ritabl¢ a¢iliviti¢s as may b¢nefLI the imhabitanls of oi visitors lo tbe area. The ¢ompatty hos ￿s0 established v￿louS tr&ding a¢ilivilies d¢sigt)#d to etJhan¢e and subsidi8¢ the charitable activities of the trust. PNblle benefl¢ The truslces are confident that the charity offers services of real t￿d practical us¢ to th¢ locaj population. The trustees confirm that they have coinplied with the requiremerLts of s¢¢t&on 17 of the Charities Act 2011 to have due regard lo the public benefjl guidan¢¢ publish¢d by th¢ Charity Cottwiission for Eng]and Wales. Use of voluKleers The wmpally rolies otL voIuJLtary help foi ttL&ny of it3 activities. Trust¢es and Offieers The trustees and officers scrving duyillg the year and 8incc the year end were &s follows.. Trusl'ees.. Mr Stephen Mark Williams h(s Laurie Peolce Mr Johnfurn¢r MT Mark Fi'all¢is Whitlock L41undell CbairniaTh.' Mr John Turnei Chief Exccutivc OffLcer'. s Elizabeth Moss Mr Michael Robert Guy (&pp)inted 28 Februwy 2024) Struelurey governanei and management Nrtlure ofgovernlpig document The company was incorporated wider the Companies Act on 3 1st October 1978 und¢r the nam¢ L811¢oshire Herilagc Trust Limited. The company is a priva￿ company limited by guarante¢ and not having a share ¢&Ypila], exemptd by the Secr¢laLy of State froTr] the r¢quii'¢m¢nt to usc th¢ word limit'￿, ill its namc. ThB liability of ¢￿h member is limitcd to an amouiit not ¢xcecding £1. The company was registered as a charity on 14th December 1978 urLdcr the PLOViSiOiiS of the Cliarities ActE (Charity number.. 508300). Page 4 Docu8ign Envelope ID.. D0016E04-062E4429-95AB-D4EFDEF712E6 Heritage Trust For The North West Trusteesl Report RecTuilm¢nl und lwpointmenl oftruslees Triistees are appointtd to reflccl tILC skills i'equired lo support tbe Board and its range of a¢tivities. Recruitment is eithci through advertising or by individual cont&ct. Induction 1ndir(4ining ollruslees A full orientstion is offered on the servi¢es provided and lh¢ rol¢s &nd re5ponsibitities of a tt'LL8te¢, includin8 their legal obligations under charity and ¢ompany law. All appointees are informed of the ¢ont¢nl of th¢ eniorandum Articles of Association and lh¢ ¢ommile¢ and decisioii- making processe8 of th¢ charity. OrguNlsational st￿¢tUre The Board c￿'rentlY consists of the trustees and is reSp￿1$1b1¢ for key policy decisions and the ¢ffe¢liv¢ governance of the or8anisalion overall. The Board n]¢¢ts on a regular basis bLt as a miuimum four titnes per year. Relallonshlps wlth related parties Subyidi4ry companies Heritage Trust for the North West owns IOOO/t) of two trading 5ub5idiarie5' L.H.T. Entsrprises LirThited 8iid Coiiscrvatiou Services N.W. Limited. Other companies Previously exerted intluence over & further two companies; Grealcr Manchester Builthng Preservation Tyust Limited and Cumbria Building PKserv&tion Trust Limited. BraJ]ehes Hey8h8m Heritage Association continues to SUPPQrt th¢ cotnpany's efforts to maintaii? a Heritag¢ Centre in Heysham Village. H¢ytham H¢ritag¢ Association is considei'ed a kn'8JLch of the moin cbarity but is an Individu￿ ¢nlity th&t liolds a scparta¢ bank account. The lund5 Ot'Heysham Heritage Association are not ill¢luded within the accounts as they are i￿]￿aterIal. Majoyr ri¥ks tsf rlsks Economic oppd cost ofliving crisis The UK 15 experÈencing economic and Lost ofiiving cri81S. trust¢¢s coi)tinue to cxamin¢ the majoy strategic, biisincss operational risks whi¢h th¢ ¢hairty taces ejid conflrn) that sYSt￿nS have betn established to ensLire that regul￿ repotts ar¢ pr0dl￿ed and that iiecessary steps an be iakeii to dddress any issu¢s ￿]Sing. The trustees hav¢ identified the major risl(s to whi¢h th¢ ￿￿'Ity is exposed and procediires to manage tbo8¢ risl(s Ii&v¢ been put in place. Financial instruments ObJectIv￿ ftndpollcies The group's activities exwse it to a iiumber of fin&n¢ial i'isks including credlt risk, cash flow risk and liquidity risk. The us¢ of fin&n¢ial derivatives is governed by the Eroup's policies approved by the board of ts'ustee which provide written principles on the use of financial derivatives to manage these riskg. The group does not use derii'ative fingmcial instruments for speculative purptsses. Pag¢ 5 Docusign Envelope ID., D0016E04.082E.442S.95AB_D4EFDEF712E6 Herltage Trnst For The North West Trustees, Report Cashflow rtsk The group's activities expose it primarily to the finaii¢ial risks of changes in forei￿7 currency exchange rates interest ra£e8. The group us¢s for¢ign exc&aDge forward ¢ontrLcts and interest ratc swap contsa¢ts to h¢dge these exposures. Interest bearing assets ￿]d li&biliti¢s ar¢ beld at fLYed rate to ¢ttsure certainly of cash flows. Credit VAsk The group's principal fir￿￿e]a[ assets are bÉu)k bajances and Cas￿ trade and other re¢¢ivables, investments. The group's credit risk is primarily atti'ibulabl¢ to its trade Teceivables. Tho amounts presented Ln tbe balance sheet are net of ￿lOWanCeS for doubtFul rec4ivabl¢s. An alloW￿l¢e for impairm¢nt is made where there is an Ldentified loss event whicli, ba8¢d on previous experienc4 is ¢vidence of a reduction in th¢ r¢¢ov¢rability of the cash flows. The credit risk on liquid funds and d¢rivative fmancial in8lrLimeThts is limited because the count•'P8rties are banks witli high credit-ratings assigned by int¢rnational CLedil-r&liDg agenGi¢s. The group has llo significant concenti'ation of credit ri3k with ¢xpsure spread over a Large niimber of counterparties and customcrs. LiqMidiÈy risk In order to maintain liquidity to ensure that suffi¢i¢nt fun(ts are available for ongoing OP¢Tations and future dov¢lopment4 the group uses & mixture ofiong-lerm wid shoit-lern debt finAUC¢. Fiirther detaiLs regarding liquidity risk can be foulld the Statetnent of ac¢oullting poticies in the fLnaii¢ial statements. Page 6 Docusign Envelope ID.. D0016E04_062E.4429.95AB_D4EFDEF712E6 Heritage Trust For The North West Trustees, Report Sta¢ement Df trustees, re$ponsibiliti65 The truste¢s (who are also the directors of Heritage Tiust For The North West for Lhe purposes of company l&w} ar¢ responsible toi. p￿Par1Thg the trustrees, report and the financiaj slalem¢iits in accordance with appli¢abl¢ law and United I(illgdorn Ac¢ounting Standards IUnit¢d Kingdom Generally A¢c¢pted Accounting Pra¢li¢e). incliiding FRS 102 "Th¢ Financial Reporting Standard applicabl¢ in th¢ UK and Republic of Ireland" Cotnpany lawr requires th¢ trustees lo prepare financial statements for each financial year, Under company law the trustees must not approve th¢ f￿an¢1&1 statements unless thcy are satisfied that they giv¢ a tru¢ and fair view of the state of affairs of the parent Ghai'itable company aiid thc group and of the incorning resources and applic&lion of resources, including its it)¢otne and expenditurc, of tlie ¢harilAble group for that p¢riod. In preparing these f￿an¢la1 stalen]ents, the trust¢es ale requii'ed to: select suit&ble accounting poli¢i¢s and apply diern coiisistently> observe th¢ methods and priii¢Lpl¢s ill the Charities SORP; make jLidgeinenls and esti￿ateS that aTe iea50nable and prud￿1¢ state whether applicable 8Q￿u￿tIng stalldard5, CO￿prIS1ng FRS 102 bave been followed, subject to any material departures disclosed and explained in Ilie fjnancial slalemellts- and prepare the financial stalemenls on the going ci)ncern basis unl¢ss il is inappropri&te to presume th¥4t th¢ parent charitable coinpany will Lonlinue in busilless. The truslces sr¢ responsible for kecping proper accounting records that call disclose with r¢asonable accuracy at gny time the financial position of the parent charitable wmpally aDd the group and enable tb¢m lo enSi￿e that d]¢ fu￿1¢1&1 statsments comply with the Companies Act 2006. They aw also responsible for safeguarding the È&qets ot the parent charitable cotnpthny ¥nd the group and h¢n¢e for tdting reasonable steps for th¢ prevention and detection of fraud and other ii'regul¥titics. The trust¢¢8 are respollsible for the maintenance integrity ot the corpoTale and IinanLial Infor￿atiOn included on tb¢ thlritable companys wcbsit¢. Legts5atioii governlng the preparation and dissemination of fillanciol staten]ents mtL), differ from legislation in other jurisdictions. Di$¢losure ofinformation to auditor Each trLiStee1Tr8 18ken steps tILat they oughi to have lakell as a tsusLEe ill order lo make Ih¢m$¢lv¢s awELre of any relevant aLid5t inforniation and to establis'h that the charity's auditor is aware of that tnfoLts]ation. The trustees onfirm ihat the￿ is no relevant intom)atioll that they Iinow ot and of which tbey know the auditor LS Ullowar¢. The annual report was approved by the trusiees of Ilie charity on 3 Januury 2025 and signed on xts behalf by., . &sF2d2¢F.PE￿4D￿............. Mr Stephen Mark Williams Thistee Pagc 7 Docusign Envelope ID.. 9FB78D03-A74A4B5E-80E7-1AD72DD74F08 Herltage Trust For The North West Independent Auditor'8 Report to the Members Df Herltage Trust For The North West Oplnlon We h&ve audited tke fIn￿Gi￿l 3t¢toments of Hen'tage Trust For The North West (the Ich￿l￿ble paront company,) alld at8 subsidL4ri¢8 (th¢'group') for thts year #ndtha 31 2024, which oomprise the Con801idated Statement of Financial Activities, Consolidated B￿allee She¢t, , Balan¢¢ ShoeÈ Consolldated Statoment of C&8h Flow8, Statement of Cash Flows Rnd Notes to the Financial Statement8, including a summ&ry of 8ignifieAnt accountllg policies, Thc fin&n¢ial roportyng framework that h48 been applled In tbelr prepuatioll is ULited Iangdon Accounting Standard8, ¢omprisin£ CharLties SORP - FRS 102 Th¢ Flnan¢lal Repor(in¥ Standard pplicable In the LIIC and RepublLG Cyf Jrel&nd' and applioable law (Unifrd K3nsdom Generally Ancepted Accounting Praotioel. In our opiniort the fmallcial 8ts1omonts.' glve a true and fair view ot th¢ State of the gri)up's and parent ¢harity'8 a£FauT 88 at 31 March 2024 and of its hicoming re8Durces and application of rgsoutGe8, inoludin8 its in¢ome &ttd expelldltt￿e, for the year thlm endcl. have been properly prepared ill acoordanoc with Utiitsd Kllwdom Gellerally Accepted Accountillg Practice. have been prepared ltt uGcordall¢e wlth tb¢ rb4ulr#taents of th CorrApanirs Act 2006. Basis for opinion We eonduct&l our audit in a¢cord8thce witb I￿￿ti￿lIonaI Standards Oll Auditing (UK) (ISAS (Ul)) alld applioable law. Our re8pDnstl)llitiQ8 undof thos# 8tHndards #r¢ fvrth¢r thttibed in the auditor Te8poll8ibilities for Ibe audtt of the finallcial 8taternent8 Section of our i'q)OTt. We are Indepet￿￿llt Of tb¢ wup AtL Uaoonlall¢¢ with the Ethioat requlremonts that are Televallt to audit of the financial statements in the tSK, includinB the FIiC'I Etbical Stattdard, und we have ￿lfIlled ow, otkntr Qtbical I¢JpoJ]sibilities in aocordawe with I'equirellLents, We believe that the audit evid¢ttce we have obtsined 18 sufficiettt And appropriate to provld¢ tL basis £ot our opinioll, Conclusions ¥¢lutillg Éo conLern In authting ¢he fu￿ncial statements, we have concluded that tb¢ trustses iise of the golng concern ba818 Of. acwunting iti tb¢ proparatioll of thè thmtsolal &tsten)ents 18 appropiiate, Based on the work we have perfonn¢d, w¢ have llot idelltifigd any matsial uncert&inties relAtitlB to events oi, Conditio￿ that, individually or G*llectivglyp may casi slgnifioallt doubt on tL]e ￿l￿p,8 F¢bility to colltinue as a going concem for a period ofat Lc&8t Iwelv¢ mootks frojn when the OTlginal Ell#ll¢l#l $l4tom¢nts tyere authori8ed for issur. Our responsibilities and the r&4ponsibiJities of the Imslees witlL respect to gowg cotw¢rn are d¢8cnbed in the rcl¢v&tsl sectiolls of thLS Teport. Other AllformAtloll The tr￿lee$ are respon￿bIe for the other information. The Dther itth&ts'on compri80J$ tILe Infomiation included in the aonual repor4 other than tke finanoial stats]nents and oui. auditor's rq)0rt thereon, Our opiuion ott the fll18ncial 8tatements do￿ not COV6r the Dth6r infoimation anl except lo the extent othenv18e explioitly stated ill our w¢ do not expre8s any fomi of a£8ur8ttoe ¢oll¢lusxon thereoh. Page 8 Docusign Envelope ID.. 9FB78D03.A74A-4B5E4OE7-1AD72DD74F08 Heritage Trust For The North West Independent Auditorls Report to the Members of Herltuge TIu8t For The North West In eottneotiott our audit of the financial statsments, our respon8ibillty is to rrad th¢ otber informatlon And, in doing go, consider wheth¢r the other itifonn4tion 16 mat¢rially incon8iStent with the tln&aoial 8tat¢m¢nts or our l b¢ matsrially rlli8St&¢ed, If we identify Such material ia¢on8A$t¢n¢ies or apprnt material m158tstsment8, we are required to detettnth¢ wb¢tlLor thero 15 1 mater￿1 mi88tatettteiit IL the flnancial 8tat¢roents oi. a matsnal MI￿tatement of the othw itifomiatiott. If, based on tkn work we have perfonneQ wt concliide that there is a muterlal mi8slatelnent of this other infonnatiott, we 8re r¢quirgd to report th3t We have nothing to teport in Twlcdge widerstanditig of the group alld the p8mlt ohATitsble ¢ompany Its enviiunmellt obtsilled in the course of the audit, we &4v¢ not identiiaed mat¢rial ntiis61atement8 in the Str&tsgic R¢port and th¢ Tnwt¢u' Report, We have llOtlLu￿ lo rep¢)rt im tesp¢Gt of the fojlowing m&tterB wher¢ th¢ Companlr8 knt 20Q6 reqiiir¢B UB to report to you if, ill Jur oplnlo adeqLUtc a¢rounfing Motds have not beell k#pt by the paront charil&ble ￿p1￿y, or rotu1￿8 adequate for our audithave not been irceived branches llOtVi8iled by us, or the parent charitable Compauy financial 8l'qt¢mellts are not in agreemetrt with the acoovnfing records and oortuill th'8r108urcs oEtN8tees remuneratiou Specifi￿ by l&w are not mad¢; or WB bave not i'eoeived ￿] the infortnstion explanations w¢ J'equIrg gor QLir audit, Re8pon51bllitles of tru5tee8 As explain￿ moye ￿llY In the Slatem¢ttt of tru8tee8' responsAbllltie8 (Set out on page 7), th¢ truslees ar¢ responsLble for the prepur&tion of the fmanci&l slÉ2temsnts and for being 8ati8fLed Lbat they give & 4nd fair ryew, olld for such internal control as the trustees detsrmins is nec6ssary to enable the preparation of financial tements that are fre¢ from matsrAal mi83tatemall( whether d4iE to fraud or error. In preparlng the fm4n¢ial sLatsment8, th truBte¢8 are re8ponslble for a88essing the ch8fitJPJ ttbility to coniinug H8 a Eolllg coueern, di$clo8itkg. a8 applioable, matter8 related to going oonoern &tKI using the going ¢ortcern b&8is of accounting unle88 the IN8tces cither intond to liquldale tho ¢lwAty or to ¢¢ase opgrations, w have llo re4lL81i¢ temats've Ixt to do 80. Alldltor responslbJlltle8 for the audit of tho fmanclal 8tuteJll¢nt& Our objeotives are to obtain reasonable aSS￿a￿ce about whether the finanGial 8tatett]eiils as a whole are ftee from matetial misstatsn￿ll¢ wheth¢r di￿ to fraud or error. wid to igSU¢ auditor's report that inoludes oiir opiniorA. Rea80nable a581￿an¢¢ i& & high level of a88iiTance, but is not & guar8nt¢e that an al￿tt condu¢tsd In &¢¢ordweè with ISA8 (UK) will ilways detect a materia] Lni8st&t¢ment ￿ell it ¢xists, Thllsstat#ments ¢tUL aris from fraud ot error and ire tt0118idered n)at¢rial if, individually or In the aggregale, they could TeELsonably bo exp¢¢ted to inEluenee the eGonomio de£i8iOll8 of users taken on tJLe basis of these fll]anoial statements. Pago 9 Docusign Envelopa ID.. 9FB78D03.A74A4B5E-80E7-1AD72DD74F08 Herltage Trust For The North West Jndependent Auditorls Report to the Members of llerltage Trust For The North West The eKtent to which our PTDcedures are capable of deteoting I￿eBUI￿ritIeS, incIudins fraud 18 det&lled bglov. Our appi'oaoh 1¢ identifying and assessing the ills1(8 of mater￿I mi88lateklleAt in r88pe¢t of irreBularltl¢s, lttoluding ftiud attd non-compliance witkn laws rogulation8, wa8 as £ollow8: the engagement p&rtJer eD8ur¢d that the un8ag¢ment tsam GOlleCti￿lY had thu appropriate oonpetence, capabilitios and ski118 to Identify or recognise non-compliance with V4ppliGable laws and r¢gulatAons' we identified th¢18w8 and reBulations applltsabl¢ to the cotnpany through di5¢1188iOL8 wiib director8 and other managem8tt1 and frorrt our commeroi8J latowledga and ¢xperi¢nce of the ¢otuput¢r ¢ompon¢nt nianufaoknring d supply 8ectOT,' • Wo focused oll 8po¢lfic law8 ond ￿gUlatiO￿6 which w¢ Considered roay have a d￿e0t m8terial effgct th¢ financial 6tstem&its or tho opThtion8 o£the Gompally, in¢luding relevallt lesisl&tlDrt 8uoh a8 thè Compat)ie8 AGt 2006, laxotlon legislation, dat& pmt¢¢tioJ, anti-brlbery. eJnploym¢nt, ellv1mj￿llentaI and health and safety legi81atioTh,' • we asSe￿¢d Éke gAlent OE complity￿e with the laws and rogulatlDll8 identth'ed abov6 thtDugh tyf&ittg ¢ttqwirie of managoment and xn8peGting legal corKspondcnc¢; • idelltified law8 and re8iilations were conllnunicated within the audit te&tn regularly Alld the team remained Ilert to in8tallc¢s of non-aompliance throughoirt the audit. We &88BS5¢d the 8U8COPtibility (If the companys financial statemont8 to material mis8tatom¢nÈ ittgliiditig obtaining all under8tandAng of how fraud Jlllght oocur, by: • mllking ￿quIrIeS of Mallagern￿t as to where thoy corAsld¢red thero was 8u8ceplibili¢y to fraud, their Imowledge of actual, 8U8PWted and allb(*ed fraud. alld I coJ]8id¢ring tho Internal contro18 iti plaoe lo mitigate risks of fr&ud non.cotnplian¢¢ lllw8 attd regulatiom, To Add￿38 the risk of fraud tbrough management blas and override of colltrols, w6: ' p6rfomied anaLyti¢ul pro¢edure8 to identlfy any Ullusual or unexpeoted Telationship8,' • tsst¢djournaA entrlw to identify unuwal tr&nsactions,' a88e88ed Nkntberiudgements alld a8sumpLioll8 m8de in detsrtnltiing the Ro¢outttinB egiitnat¢8 set out in Note 2 W¢T¢ indi¢&tive of potential bi&B,' arALt * inv¢stigat¢d the rationale b¢biLd 81gnJflcattt oruttiwual transaction8, In re8pon8¢1o the ris1< of irregularitles attd non-compliance with laws and re￿￿￿ti0}n￿, we thiglled procedw85 whioh included, biit weip not limited to: 4 ugr¢¢ing ffft&nGial 5tatsm¢ot disolo8ures to underlying supporting dooutn¢nt&tLOn' re&ding th¢ minutes of m¥etillg8 of rhose charged with govertsan¢¢' • enqllirlng ofmanagement a8 to 80tu&l and potentiLI IiuEation and Claims. end ' Ieviewillg corre8pffli(lenoe with HMRC, relevant regulators and ths ￿MpAnY'S legal advt8or8, There qre ijthereat linitatlon8 in our audit procedureE4 de8¢ribed abDVd. Th¢ mor# romov¢d that laws and regulations are from finallcial tr&n3aCtions. the less likely it is tljat we would becoine aW￿.e of non-compllanae. Auditing standatrd8 limii the mdit procedu￿S reqliired to identify non-compliallce with laws and regulations to enquiry of the dir¢¢tors and other rn&nasoMant alld the inspection of regulatory and legal oorrespondence, if MatsrAMI mi88tal¢tnents that ￿18¢ du¢ to fraud b¢ b￿agr to dotect thall those (bat ari8¢ fTum error as thoy may ittvolve dejiberate oonoealment or ¢ollu8iOll. Page 10 Docuslgn Envfrlope ID.. 9FB78DO>A74A.4B5E￿OE7-lAD72DD74F08 HerltAge Trust For The North West Independent Audltor's Report to the Memb¢rJ of Herltage Trust For The North Wost Use of OUL report This report is made solety to the olwitable parellt compan￿8 ￿stee8, a8 a boty, ui ac¢ordallce with Chapter 3 of Part 16 of the CotttPHtiiQS Aot 2006, Our audit woikhas been Uj￿ertekell so tbat we mlght 8tate to the group'8 truste¢s th086 matters w¢ are required to state to theLll la att aldltor's rq)ort and for other pwpo$e, To the fulle8t oxtertt pellnitteA by law, we do not a¢cept or a8sume re8p0tt81biIity to ￿YOne other than tkn oharltabl parent ¢ompany and its tru8te68 as a bodyi for our audAt work, for thi8 report, or for the oph]ion8 we hav¢ fomied. Do¢u8lun8d by.. 8ten Sh¢ar¢r FCA (Senloi Statutory Audltor) For and on bghalfof RawGliffe & Co Limited, Ststutory Auditor Unit l BatOJ8 Court Whitehi118 Busina￿ Park Blaolq)Ix)I Lalloa8hire FY4 5GP 29 January 2025 Page 11 Docuslgn Envelope ID.. DOOI 6E044J62E-4429-95AB-D4EFDEF712E8 Heritage Trust For The North West Congolidated Statement of Flnanelal Activities for the Year Ended 31 March 2024 (Including Consolidated Income and Expenditure Account and Statemellt of Total Reeognised Gains and IAJsses) Ilnr¢strict¢d fund$ Total 2024 Restricted funds Note Income and Ei ndowments from.. Donations ￿]d legacies Charitable aotiviti¢3 Other trading a¢ttvil'ies Other income (1,358) 2,000 1,742,874 43.491 2,200 42,133 4.200 1,742,874 499 Total iThwme 1751396 1797.586 Expenditure on: Raising funds ChaTitVAble &ctiviti¢s Other expenditure (594,833) 1303) 1,321,195 (594,833) (3031 1,383 617 62.4221 Total expenditure. 1916 331 1978 753 Net. expenditure 164,935 181,167 Net n]oveInont itL funds (164,935) (16,232) (181,167) Reconclllation of funds Total funds bTought forward 1.546,341 640,777 2187 118 Totsl fwids carried forwald 26 1.381406 Unre8trictsd funds 624 545 2,005351 Total 2023 Restrictod funds Note IncDme and Lndowincnts from: Donations Jnd legacies Charitabltt aL4ivities Other trading activitses OLher income 13,349 2,817 1,749,245 104.510 55,381 117,859 58,198 1,749,245 Tolal income 1,777,054 159,891 1936 945 Expenditure OTh: R&ising funds Charilable activitie8 Other expenditure (568,712) (48,9671 (23,527) 112 870) {617,679) (23,527) 337 897 1,225,027) Total expenditure 1793 739 185 364 1979 103 Net &Ypendiliire 125 473 Net movement in funds (16,685) (25,473) 142,158) The noles oll pages 18 to 47 torm an integral pgrt ofthese finaTLcial staten]enls. Page 12 Do¢uslgn Envelope ID.. D0016E04-062E-4429-95AB-D4EFDEF712E6 Heritage Trust For The North West Consolidated Statement of Finaneial Aetivities for the Year Ended 31 Mareh 2024 (Including Consolidated Income and .Expenditure Accoiint and StAtem¢nt of Total Reeognised Cains and Losses) Unrestylcted funds Tfrtal 2023 Restricted futtdg Note Reeoncillatlon of thnds Total fullds broiight forward 1,563 026 666 250 2 229 276 Total fuiids carried forward 26 1,546 341 640 777 2 187 118 All ofthe group's actlVLties deriv¢ bom continuing operations during th¢ aknv¢ two periods. The fillids b￿akdO￿lY[ for 2023 is shown in note 26. Th¢ notes on pages 18 to 47 form 8n llite￿￿ P￿.1 of th¢s¢ financial statements. Pag¢ 13 DO￿$1pA Envelope ID.. DQo18EO4￿82E4429-95A&-[j4EF0EF7l2E6 Heritage Trust For The North West (Registration number: 01397038) Consolidated Balance Sheet as at 31 March 2024 2024 2023 Note Flx¢d a55¢1s Tangible assets Heritage assets Inv¢stments 14 34.763 932.007 2 258 492 3 225 262 43,893 1,077,721 2,658,492 3 780 106 Is Current assets Stocks Debtors Cash at bank and in 17 18 19 9.130 39,747 196 558 245,435 13,664 178,361 188,679 380,704 Creditors: Amounts fallinE due withln one year 20 349,668 552,522 Net currejjl liabi]ities 171818 Total Iissets1¢s8 curr¢nt liabilitie3 3,121,029 3,608,288 Creditors: Amounts f&lllng due after more than on¢ ye4r 21 (1,115,078) (1,394,251) Provisions 22 26,919 N¢¢ assets 2005951 2 187 118 ri unds of thc group: R¢$tri¢t¢d income t'unds Re51ri¢l¢d fun(ts 609,755 640,777 Unr¢stri¢t¢d iueomc fullds Unrestricted funds R¢valLwiion reseive 1,249,555 146,641 1,282,008 264 333 Total unrestrictEd fund5 1396,196 1546 341 Ttstal funds 26 2,005 951 2 187 118 'rhe fllthncial statements on pages 12 to 47 wer¢ approv¢d by the ￿lSteeS, and authoristd for issue on 3 Jani￿ry 2025 and Signed on their behalf by.. Slgned by,, ?.42PEHE94,4DD.-........... Mr Si¢phen Mark WillÉ&ms Trustee The notes on pagcs 18 10 47 foim an inlegral ptwt of these finalle1￿ statements, Page 14 Docuslgn Env8lop& ID.. D0016EO4062E-442g-95AB-D4EFDEF712E6 Heritage Trust For The North West (Registration number: 01397038) Balance Sheet as at 31 March 2024 2024 2023 Note Fixed asset5 Tangible Asset's Heritage assets Investments 14 15 6,798 932,007 2 258,993 3,197,798 7,966 1,077,721 2,658,993 3,744,680 Current assets Debtors c￿ at bank and in hand 18 19 204,507 163 148 367,655 316,834 179 871 496,705 Cr¢dltors: Amoun¢9 f&lllng due wlthln one year 20 401314 604 484 Net current liabilities 33,659 107779 Total a55ets less current liAbiiities 3,164,139 3,636,901 Credltory: Amountg lalling due aft¢r more than one year 21 (1,094,868) {1,359.495) ProvlsSon$ (26 919 Net assets 2,069.271 2,250.487 Funds of the eharity: Restricted inLome fullds Restrict¢d fiJnd3 549.202 565.326 Unre51rif t¢d incornt funds UnLestrictod fuuds R¢valuation r¢s¢rve 1,373,428 146 641 1,420,828 Total iinr¢stri¢ted flind5 1520 069 1685 161 Total fiinds 26 2 069 271 2 250 487 The fLnanci41 sialemenls on pages 12 to 47 were upproved by the trustees, and authori5ed for i5$u¢ on 3 JanLiary 2025 and sigThed on their behalf by.. S￿￿edb¥.. ¥q2AF86944EO,.,,,,.,,,... Mr Stephcii MaTk Williatns Trustee Tho not¢S QTL pag¢s 18 to 47 forfft an integiLI pwt ofthese financial stateLnenls. Page 15 Docu8tgn Env￿0p& ID.. D0016E04.Oe2E-4429-9SA&D4EFDEF712E6 Heritage Trust Ifor The North West Consolidated Statement of Cash Flowj for the Year Ended 31 March 2024 2024 2023 Note Cash flow$ from opor&ting activities Net cash expenditure (181,167) {42,158) Adjustments to e#9h flo)vs from non-ca$h itcms Depre¢ialion Revaluation of inY¢stments Los5 on disposal of r￿ed assets held for the group's owt] use 11.022 105,428 13,765 224,820 (24,431) 291,231 Working e&pital adjustments Decyeasel(lnorea￿) in stocks Deciease in dobtOLS IDecrease)lincrease in ¢r¢ditors Decrease in provisions 17 18 4,534 138,614 {56,094) 26,919 (1,164) 41,809 12,057 20 22 N¢t Cgsh flow￿ from operating a¢tivities 343 933 Cash flows from investing activi¢ie8 Purcb￿C of tangl& )1¢ fix¢d assets Sale ot invcstxuents 14 (1,892) 400 000 (1,549) N¢t Cash flows frotn illvesling aGlivili¢s 398,108 (1,549) CAsh flows from financing activities Repayment of lo￿15 and borrowAngs 20 425 933 322 175 Net increase in Ca5￿ and cash eqiiivalent8 7,879 20.209 Casli arLd cash cquival¢nts at l April 188679 168 470 Cash and Cash ¢quival¢nt8 at 31 March 196,558 188 679 All of the cash flows are derived from continuing operations during tlie above two periods. Tbe notes on pages 18 to 47 forni an intcgral part of th¢se financial 8t&femenls. Page 16 Docusign Envelope ID= D0016E04-f162E442g-95AB-D4EFDEF712E6 Heritage Trust For The North West Statement of Cosh Flows for the Year Ellded 31 March 2024 2024 2023 Not£ Cash flows from operating 8¢tivitie8 N¢t cash expenditure Adjustments to cash flow8 frorn non-¢ash items Dcpreciation Revaluation of investmet]Is Loss on disposaL of fjxed assets h¢ld for tbe charity's OWfL US¢ (181,213) (42.105) 1,700 105,425 40,286 (33,802) 1,720 224.815 94,804 279,234 Worliing capital adjustmeDIs Decrea￿ in debtors (Decrease)lincrease in creditors tkcrease in provisions 18 20 112,327 (56,4101 io,ooi 74,138 Net cash flows fft)m operating activities 363,373 Cash floiv$ from investing Activitie Purchase of lat)gible fixed t)ssels Sale of investments (532) 400,0(K Net Ca8h flows fri>m investxllg a¢tivities 399,468 C85h floTrvs from fjnanriog actii'ities Repaymeiit ot loans and borrowings Net (decreas¢)linor¢8se in Lash and casli eqUIv￿￿nts Cash and cash equivalents at l April 20 41.1,387 307.881 (16,723) 55.492 179,871 124 379 Cash and casb equivalellls at 31 March 163 148 179.871 All ot tb¢ ¢a5h flows are derived from continiiiiig op¢rations duriiig tbe llbove two periods. Th¢ not¢s on pages 18 10 47 forLn an integral of Iliese finan¢lal stat¢m¢nts. Page 17 Docusign Envelope ID., DOOI 6E04-062E-4429-9SAB-D4EFDEF712E6 Heritage Trust For The North West Notes to the Financlal Statements for the Year Ended 31 March 2024 I Charity sl¥tUS The charity is limited by guarantee, incorporated iii , 8nd ci)nsequently does not have share capilal. Each of the triistees is liable lo contribiit¢ an urnount not ex¢eedin8 £1 towards the assets of the charity in the event of liquidation. The address of its registered office is.. P8rk Hill Barrowford Nelsoii Lancashire BB9 6JQ These fmancial statements were &iithorised for isgue by tlie tsustees on 3 j￿ll￿ry 2025, 2 AeeountiThg PDIi¢i¢$ Summary of signifi¢&nt MecollntlnE policies and Iiey 4c¢ounllnE estlma¢es The ￿'1￿¢1paI accounting policies applied in the preparatlon of these f]nancial statements are set out below. These poli¢ies have been conslstently applied to all the years PTeseiited, UTdess otherwise stated. Statement of eompllance The financial statemellts have been prep&r¢d itj a¥¢orOance with AcL7)untiiig and R¥porting by Charities.. St&terncnt of Recominended Pracli¢e (applicable to chariti¢s pr¢paring their aecoLinls ill accordon¢e with Lhe Financial Reporting Standard applicable in the UK and R¢public of Ireland (TRS 102)) (issued in October 2019) (Charitics SORP IFRS 102)), the Financial Reporting sta￿dard appli¢able in the UK and Republic of Ireland (FRS 102) and IlTrc Companies Act 2006, Bagiy of prcparntion Heritage Trust b'or The North West th¢ d¢f￿ltiOn of a public beuBfil entity under FRS 102. Assets and liabilities are initially recognised &1 hi51orxcal ¢03t or trans8ct.ioii vahe unlcss otherwise ststed in the relevant 8GCOUllting policy notes. Ba8is of ¢onsolidation The consolidated fiTranria] slatemellts coJ]solidatE the fit]ancial stat¢m¢nts of the ¢barity ￿]d 118 subsidiary undertakings draMryL UP to 31 Mar¢h 2024. No sl&tsmenl of fJnan¢ial ￿tIvitieS j5 pi05¢nt￿ for th# Cl￿ritY as pertnitted by section 408 of the Compani¢s Act 2006. The charity mad¢ 81053 &Aer lax for tho finanGial ye8r of £298,905 (2023-108s of £42,158). Pag¢ 18 Do¢u8lun Envélope ID,. D0o16ED44)62E.442￿S5AB-D4EFDEF7l2E6 Heritage Trllst For The North West Notes to the Financial Statements for the Year Ended 31 March 2024 A subsidiaiy is an entity controlled by the charity. Control is &chieved where th¢ charity has th¢ pow¢r to 8overn tlie ftnancia] and operating poli¢i¢s of an entity so ￿ to obt&in ben¢fits from its activities. The r¥sults of subsidiaries acquired or disposed of duriiig th¢ year ￿'e included irL the statement of tLnancial aLtLVLti¢s from the etfective date ot &CqUi55tion or up to the effective dats of disposd, as appropiiate. Where necessayy, adjustments are rn￿e to the fLnarLcial statements of subsidiaries to bring their accowiting policies into line with those used by Ibe 8roiip, Tlie purchase method of a¢countin8 is vs¢d to account for busin¢ss combitiations that i'¢suli in th¢ acqiiisition of subsidiaries by the groiip. The Cost of a busin¢ss combination 1$ m¢asi1r￿ 8s the fair value of the assets siv¢n. equity instrLllneiits issued and liabiliti¢s incurr¢d or assiun¢d at the dale of excha￿ge, plus costs dir¢¢ily attributable to tlie business ¢oinbination. Identifiable a53el3 acquired and liabilities and cOnt￿gent liabilities assumed in a business cOmb￿all0n are measiired initially at their fair y￿UeS al the aLquisition d&te. Any excess of the cost of the busir]ess combinatiorL oveT Ibe wuirer's interest in the nel fair value of the identifiable as5els, li8bililies ￿]d ¢onting¢nl li&bilitie8 ree1)￿]18ed is recorded as goodwill. InleTr¢ompany Iransactions. balances and iinreaJL8¢d gains on transactions b¢tsveen the charity and its subsidiaries, whi¢h are reLat¢dparties, are elimin8t¢d ITL full, Intra-group losses are also eliminated biit n]ay indi¢gt¢ an iLnpainnent that requires r¢¢ognition in the onsolidatcd fTttancial stateinents. Accoimting policies of siibsidiarie8 have been ctTrnsed where necessary t'o ensure consistency with the policies adoptsd by the gmup. Non-conli'olling int£resLg in the nct a85cts of cons01idated subsidiaries are identified separately fron] the group'5 equity therein. Non.conlrollinE interest8 consist of tlic amount of thogc interests at the date OE the originll I business combination aTLd the non-controlling shareholder's share of changes in equity sinee the dale of the combination. Totsl comprehensive income is attributcd to non-controlling interest8 even it this results in the non-controlling interests having a deficit balance. GoinE concern The financi￿ slatemenls hav¢ IK¢t] prepared on a going con¢erll l)asis. The trustses asses8 wheLher the use of going con¢¢rn is appropriatc i,e. whether theK we any material uncertainties rclatcd to tvellts or ¢onditions tt]&t may cast signiti¢ant doubt on the ability of the charity lo ¢DnLiniie as a going concern. The trustccy make this agsessmlling int¢r¢$ls ￿ appropri&te). Ot'her exchange differeTLees are recognised iii th¢ Statement of Fi￿￿ciaL Activities lli th¢ EKriod in which tl]ey arisc except for.. l} exchattg¢ diffei'¢nees on Iransaclions ent¢red int() Lo hedge certain foreign curr¢ii¢y risks (s¢e above). 2} ¢XLhange d1fte1.￿1£C8 arising on gains or losses on non.monetary items which are reco8nis¢d in other cotnpr6hcn5iv¢ in¢ome' 3) in the case of the consolidated hnancial statements, exchAng¢ differences on monetary itrms receivable Irom oi. payable to a foreign op¢xalitsn IDr which scttlcment is neither planned nor likely to occur (Ih¢r¢fore forming part of the net investment in th¢ foreigll operation), Nvhich are re¢ognised in other Lomprehensiv¢ in¢oine and reported under equity, UDd stru¢lure Unrestricled income fund5 ar# general funds that aLe available for use at Ihe trustees discj'etioll in furthmce of th¢ objectives ofthe group. Restricted inconio funds ar¥ those donafrd for us¢ in a particular area or for speclfic purposes, the use of whic is re5tLicled lo Iliat area or purw)se. Pag¢ 22 Docuslgll Envelope ID,, D0o16E044)62E-442W95A￿D4EFDEF712E6 Herltage Trust For The North West Notes to the Financial Statements for the Year Ended 31 March 2024 Penslons and other post retlrement obllgations Th¢ group operat¢$ & defllied coiitributioll pension sch¢tne whi¢h 1$ & pension plan wider which fLxed coiitribulions are paid into a pension fund and th¢ groiip has no legal or constructive obligation to pay further contributions ¢v¢ii if the fund does not hold sufficient assets to pay all employees the L￿tter1ts relating to employ¢e s¢rvice in the curr¢nl and prior periods, Contributions to defin¢d conlributton plans are recognised in the Statement of Fitsancial ActlVLties wheii they are diie, If colltsibution payments exceed Ibe contribution due for scryicc, the excess is Tecognised as a prepaymet]l. Financilll in$trum¢ntg Cthssificatio Fiiiancial ass¢t$ and fjnancial liabilities ar¢ Te¢oglll8ed when the group becotnes a party to the contsactnal PTOViSiOllS of the instrument. Fin￿01￿[ liabilities and equity inslrumertts are classified according to the SLthstan& of the ¢i)ntra¢tual arr3￿geMents entered into. An equity instru]nellt is any coDtr&ct that evidences a Tesidual interest in the assets of the groLiP after deduGling all of its liabiiities. Recognlilon (thdmeusurcment All financial ass¢ls and liabiliti￿ aro initially m¢a3ured at trons8rtiou price (tncludmg ts'ansaclion costs), except for tbose financial ass¢ts ¢I￿S]f[¢d a3 al fair valll¢ tbrough profit or 1085, whi¢h are initially measured at fail. vaLue (which is noi'tnally the tTansaction ￿.1¢¢ excluding tranS￿tiOn costs), unless Ilie ￿Yang¢mellt constitutes a financing tsaiisaction. If arrangement constiliites a financing transaction, the fiiiancial asset or financial liability is mea8ur¢d at the present valiie of Ilie future payments discounted at a marlnc yew on initial recognition alld which meet the abov¢ Gollditions are measured at the undiscoiinted amount of t￿¢ Cash or other consideration expected to be paid 01 recciv¢(L n¢t impairjnent. With th¢ exception of som¢ h¢d8ing instruments, otller debi insirumenls not mecting these wnditions 8 tneasured at fair valu¢ through profil or10sS. Commitments to make and I¢￿1v¢ loans which Jlleet the ¢onditions mentiotLcd above ￿.¢ measl￿d at cost (which m&y be nil) less impairLnont, Inveslments Inveslmenls in non.convertible preference shares and noD-puttablc oidiiiary or preference shares {where share5 are publiLly traded or th¢ir fair value is reliably measurable) are measurcd al fair value through profit or loss. Where fair value caniiot b¢ measured reliably. investments are measured at cost less impairmeiit. Inv¢stments in subsidiaries and associatcs are m¢wired at cost less itnpairm¢nt. For investrnents in subsidiaLies acqutr¢d for consideration including the issue ol shares qualifyiiig for m¢iger reLie£, cost is m¢asLir¢d by ferenc¢ to the non]iiiaL valuc of the shares issued plus fair value ol other coiisideration. Any premiwn is ignored, Page 24 Doujslgn Envalopè ID.. D0016E04-062E4429-95AB-D4EFDEF712E6 Heritage Trust For The North West Iyotes to the Financial Statements for the Year Ended 31 March 2024 DerIV￿¥verwrnD¢10[Ill￿trU￿e￿ts The group uses derivative financial instruments to r¢du¢¢ ¢xposure to foreign ex¢lthLige risk and irtler¢st rate moveJD¢t]ts. The 8roup does not bold or issue derivative finoncial instruments for speculative purposes. Deriv&livcs ax¢ initially recognised at fair va]ue at the date a deriv&tiv¢ eonlr&cl is eniered into and ￿e subsequerLtly remeasurod to their fair value at each Teporling date. The r¢suliing gkiin or Ioss L8 recognised in statement of financial a¢tivitie8 immediately unless the derivative is designated and ¢ff¢ctive as a hedging instNm¢nt, in which event thc timing of the recognition iti sfatetnettt of financi￿ ￿tivitieS d¢p¢nds on the llature of th¢ lJedg¢ rel￿'lonsblp. Fllir value measurement The best ¢vid¢n¢¢ of fair value is a quot¢d price for &n identical asset in aTL active marl]re restricted. Page 36 Do¢usign Envelope ID.. D0016E04002E-4420-05AB-D4EFDEF712E6 Heritage Trnst For The North West Notes to the Financial Statements for the Year Ended 31 March 2024 20 Creditors: Amounts falling due Trvithin one year Group Ch&rity 2024 2023 2024 2023 BatJLc loans Trade ci¢dito Other loans Due to 8roiip undertakings Other taxttion and socia] seeurty (hher credito A¢crua15 40,707 90,807 1,579 78,379 137,495 110,667 26,107 1,837 1,579 19S,642 58,606 114,043 63,779 41,206 110,667 372,643 (101,379) 111,418 67,972 121,249 73,302 112.949 349 668 552 522 401314 604 484 Creditors di￿ within one year includes the following liabilities on which security has b¢¢n given: Group ChArlty 2024 2023 2024 2023 Ban1( loans 78,379 21 Creditors: amount5 falling du¢ aftcr ont year Group Charity 2024 2023 2024 2023 Bgllk loalls 1,115,078 1,394,251 1094 868 1359 495 Creditors amounts falling diie &ft¢r more Ihim one year includes the follomqng liabilities on which security has been given., Group Charity 2024 2023 2024 2023 Bank lo}￿ 1113 0711 1394251 1094 868 1359,495 Pagc 37 DoBusiun Envelopè ID.. D0016E04-062E.442g.95AS-D4EFDEF712E6 Heritage Trust For The North West Notes to the Ilingnclal Statements for the Year Ei nded 31 March 2024 22 Provisions Croup Other provislon Total At l April 2023 Inctease from oihei. transfers (26,919) (26,919) At 31 March 2024 Pi'ovisioii for tlie rnaintenance of Pendle Heritage Centte. Charity Otber provision Total AL l April 2023 Increase from other tsansfers (26.919) (26,919) At 31 Maroh2024 13 Penilon And other schcnies Defined contribution pensi4)n sLhem¢ The group operates & delined Contribution pellsioll s¢h¢￿e. The pensior cost ¢haTg¢ for th¢ year repLesents conli'ibutions payablc by the group to tILe scheme and amowitcd to £lJ,605 (2023- £13,398). Page 38 Docu81on Envelop& ID.. D0016E04-062E4429-95A8-D4EFDEF712E6 Heritage Trust For The North We8t Notes to the Financial Statements for the Year Ended 31 March 2024 24 Reserves Group Unreslritted revaluadon rcserve TDtAI Al l April 2023 TransfeT of surplus thnds (264,333) 117,692 (264,333) 117,692 At 31 March 2024 146,641 146.641 Group Unrestrictcd revaluation reserve Total At l April 2023 (264,333) (264,333 Charity Unre&trict¢d revaluatio resf rye Total At l April 2023 Transfer of surplus fLukds At 31 March 2024 (264,333) 117692 (264,333) 117692 146,641 146,641) Charity Unrestricted revaluation r¢serYe Tot%1 At l April 2022 264 333 264333 Page 39 DDCU81gn Envelopè ID.. D0016E04.D62E442g.95AB-D4EFDEF712E6 Heritage Trust For Tbe North West Not&8 to the Flllaneial Statements for the Year Ended 31 IVIar¢h 2024 25 Commitments Chority Other financial eommltmenl8 Duritlg th¢ y¢ar th¢ ¢ompany had th¢ following operating lease ¢ommitments: Lythan] FIall- leased at £1 per annum over 99 years. Tlie lease expires on 3 Isl December 2097, and Park Hill.. leased al £1 per anllutn over 90 years. Tbe lease expires on 3 1st March 2081, Due to the historic nalure of the buildiiigs the trustees do not believe it is possibl¢ to establish & marketabl¢ T¢Utal vaILie for th¢ prop¢rties, The total amount of other tllllncial commilments not provided in th¢ tinan¢xal statements was £Nil12023 - £Nil). Page 40 rry cry rry * In rry i iii li; ro cry rn try cn 09 rn Cry rry cn Docusign Envelope ID". D0016E04-062E4429-95AB-D4EFDEF712E6 Herfitage Trust For The North West Notes to the Financial Statements for the Year nded 31 March 2024 27 Analysis of nel asget$ between fulld$ Group Unrestricted fund$ Gener&1 Total funds 4t 31 larch 2024 Reslrieted funds Tall8ible fjxed assets H¢ritsge assets FIX￿ asset investments CurLent assets Current liabllities Creditors oY¢r l y¢tU' 34,763 387,101 2,258,492 180,586 (349,668) 1 115078 34,763 932,007 2,258,492 245.435 {349,668) 1115,078 544,906 64,849 Total llel assets 1396 196 609 755 2 005 951 Totol funds at 31 March 2023 Unrestricted funds General Designated R¢Ntri¢ted funds Tangibl¢ fixed assets Heritage as3et3 Fix¢d asset investmeols Current assets Curreni liabilities Creditors over l yeHr Provisions 43,893 643,418 2,658,492 174,231 (552,523) (1,394,2il) 43,893 1,077,721 2,658,492 380,704 (552,5231 (1,394,251) 26919J 434,303 206,473 Totsl net assets 1,573,260 (26,919) 640,776 2,187,117 P¥kge 45 Docuslgn Envelop8 ID.. DOD16EO4062E4429-S5AB-D4EFDEF712E6 Heritage Trnst For The North West Notes to the Financial Statements for the Year Ended 31 March 2024 Charity Unr¢8tYictsd funds General Total fund5 at 31 March 2024 Restricted funds TaEJgible fixed ass¢ts Heritage assets Fixed asset investments Current assets Current liabilities Creditors over l year 6,798 447,654 2,258,993 302,806 (401,314) 1094 868 6,798 932,007 2,2J8,993 367,655 (401,314) 1094 868 484,353 64,849 Totsl net assets 1520 069 549 202 2 069271 Total funds at 31 March 2023 Unrebtricted fuTEd5 General De8ignAted Restricted funds Tgngible fixed assels Heritsge assets Fixed assel investtnents Current assets Curi'ent liabiLities Creditors over l year Provisions 7,966 718,869 2,658,993 290,232 {604,485) (1,359,495) 7,966 1,077,721 2,658,993 496,705 (604,4851 (I,i59,4951 358,852 206,473 Total nct as8¢ts 1,711080 565,325 2,250,486 28 Analysi8 0fn¢t fund8 Group Financing e#sb At 31 M*rch flo 1024 At l Aprtl 2023 Cash at bank iu hand 188.679 196 558 N¢t debt 188 679 196 558 FinnnciDg cash At 31 March flows 2023 At l April 2022 CRsh at bank and in h￿id 168,470 188 679 NeL debt 168 470 188 679 .Page 46 Docusign Envelope ID.. D0016E04.D62E4429_95AB.D4EFDEF712E6 Heritage Trust For The North West Notes to the fi inancial Statements for the Year Ended 31 March 2024 29 RelAled PArty IrAllSA¢tions Group During ibe year th¢ group made tbe following related paty trallsactions,. L.H.T. ETrterpri8e8 Limited (L.H.T, Enterprises Limited remwn¢d a wholly owned subsidiary of the Teporting company.) During the year Heritage Tiust for th¢ North W¢st ¢Lther received income or paid for expenses offt behalf of its Subsidiary. Duriug the year i&e siibsidiary company also ¢ith¢r rc¢eiv¢d in¢om¢ or paid for ¢xpenses on behalf of Heritage Trust for the North West. In additioii L.14.T. Enterprises Limitcd mad¢ profit distributions lo its pa￿nt und¢rtsking undeT a seryice level agreeiD¢nt totslling £152,140 [2023.. £234,167).. At the balance sheet d&te the arnounl due to L.H.T. Enterprises LimitEd was £195,642 (2023 - £372,643). Conservation Services N.W. Limited (Conservation Service5 N.W. Ltmiled r¢m8its¢d a wholly owned subsidi8ry of tlie reporting company.) During th¢ year Heritage Trust for the Nortlj W¢$1 ¢ither received itLeOtne or paid for eXp￿)seS on Ixhalf of its subsid1￿, Dwillg the year the Subsidiary COmp￿}Y also ¢tther r¢c¢iv¢d income or paid for expenses on behalf of Heritag¢ Trust for the North West. Coll5ervatioii SeTVi¢¢S N.W. Limit¢d made profjt distributions to its parelll uiidertal