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2022-12-31-accounts

NUNEATON MUSLIM SOCIETY

(CHARITY REGISTRATION NUMBER: 514390)

REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

0

NUNEATON MUSLIM SOCIETY

CONTENTS

Page
Administrative Details of the Charity 2
Report of the Trustees 3 to 6
Independent Examiners Report to the Trustee 7
Statement of Financial Activities – Masjid and Madrasah 8 to 9
Statement of Financial Activities – Bookshop and Kitab 10
Statement of Financial Activities - Burial 11
Balance Sheet 12
Notes to the Accounts 13 to 16

1

NUNEATON MUSLIM SOCIETY

ADMINISTRATIVE DETAILS OF THE CHARITY

TRUSTEES The following Trustees and Holding Trustees were in place: The following Trustees and Holding Trustees were in place:
Mohammed Shafi Khalifa Interim President - appointed
05.07.2022
Mustafa Khalifa Secretary
Ismail Malik Assistant Secretary
Zahir Aadam Treasurer
Javid Jogiat Assistant Treasurer
Imtiaz Ahmedabadi
Yaseen Ahmedabadi Resigned 05.07.2022
Yunus Patel
Saeed Sheikh
HOLDING TRUSTEES Ibrahim Bham
Ahmed Ismail
Abbas Khalifa
Yusuf I Patel
PRINCIPAL OFFICE The Mosque
4 Frank Street, Nuneaton CV11 5RB
ACCOUNTANTS Sidat & Co Accountants
26 Abbeydore Grove, Monkston
Milton Keynes MK10 9HH
SOLICITORS Band Hatton Button Solicitors
52-55 Butts Road, Coventry CV1 3BH
BANKERS Lloyds Bank
17-23 Coventry Street, Nuneaton CV11 5RB
Virgin Money, Warwick House
Coton Road, Nuneaton CV11 5TL
HSBC
3a Queens Road, Nuneaton CV11 5JL

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NUNEATON MUSLIM SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

Alhamdulillah it gives me great pleasure in presenting the 2022 Report and Accounts for Nuneaton Muslim Society (“Society”).

I begin by thanking the Almighty for his guidance and strength during a year of challenges – a year in which we saw our President Yaseen Ahmedabadi resign in July 2022 and leaving a big void, and having to step in as an interim president to ensure continuity. His energy and enthusiasm for the betterment of Society and getting things done will be missed. We also lost various members of the Society that continuously provided support including Haji Mohammadi Mulla who sadly passed away in March 2022. He held the position as a Holding Trustee for almost a decade and ensured that the Board of Trustees were held to account when the need arose. We also lost Yasin Yusuf Sheikh who was an active volunteer member of the Society, and touched everyone’s heart and with lasting memory and legacy for our Society. May Allah (SWT) be pleased with all those who we have lost during the past year and grant them all the highest abode in Jannatul Firdous, Ameen.

On a positive note, we must also not forget by recognizing our sister, Abeda Vorajee for achieving a Member of the British Empire (MBE) for services to Community Integration and Interfaith Understanding in the 2022 Queen’s New Year’s Honours List. This is a remarkable and a big achievement and one that we should all be proud of. Abeda has worked hard alongside the Society by championing the cause of Muslim ladies in the community and is an embodiment and an inspiration to all our sisters. May she continue with the good work and encourage other sisters to play their part within the community.

The cost of living crisis is taking its toll both within the Society and the Muslim community (e.g. increase in utility bills, rising food cost), the impact of which is leading to mental health and depression. We can only hope and pray that this situation will start to ease off soon but must remain vigilant within the community to provide support where we can to these vulnerable people.

Our collaborative work with the community and partners has continued to grow from strength to strength. This work would not be possible without the selfless commitment of Committee Members, Trustees and our Volunteers.

The Board of Trustees have actively embraced modern digital technology including using cloud and moving away from manual records to digital records. The notable areas of change include the computerisation of accounting records. This has enabled improvements in management reporting, and also ready to meet the HMRC strategy of “Making Tax Digital”. All employees’ wages, salaries and suppliers are now paid through online banking thus ensuring full accountability. Debit and credit card machines are used for collecting membership, and donations for various appeals throughout the year. The introduction of these machines have resulted in a significant increase in Lillah donations for the Masjid to £22,537 (2021: £9,229), and Appeals funds to £31,071 (2021: £7,000).

We have also taken the opportunity to amalgamate three different sets of accounts into a single reporting of all three activities (i.e. Masjid and Madrasah, Bookshop and Kitab, and Burial account) whilst still retaining statement of financial activities for each area, and a consolidated balance sheet for all activities. This will give a better insight into management reporting.

As part of an investment program, the purchase of a property costing £193,517 inclusive of legal costs was completed in March 2022. Following repairs to the property to comply with the letting requirements, this property is now rented and is generating a rental income of £725 per calendar month.

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NUNEATON MUSLIM SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

Structure, Governance, Management

The Society is a registered charity under registration number 514390 and its governing document is the constitution. The primary objective of the society is that of advancement of Islam, and to cater for the provision of the religious aspects of Islam. The Executive Committee (referred to as "Trustees") comprise ten Members and four Holding Trustees who are elected every two years and four years respectively.

The Trustees have the sole responsibility for running the society per the constitution whereas the Holding Trustees have no such authority. The function of the holding Trustees is to oversee the legal title of the Society's property including land and properties and to intervene in the event of an impasse between the Executive Committee and its Members.

Appropriate Disclosure Barring Service (DBS) checks are made for all those who work with children or other vulnerable groups within the Masjid or the Community Centre on behalf of the Society. All committee members and Madrasah staff have completed a safeguarding course and continue to develop themselves further, ensuring our children receive the best education in a safe and secure environment.

Objectives and activities

Our aims

The objects of the charity are set out in the Constitution as follows:

Our objectives

Our objectives are set to reflect our faith and community aims. Our Trustees review our objectives and activities to ensure they continue to reflect our aims. In carrying out this review the Trustees have considered the Charity Commission’s general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit. Our long-term ambition is to build the self-confidence of local Muslims in their faith, and through our community facilities and activities help make our area a peaceful, vibrant and harmonious community.

Use of volunteers

Volunteers are an important resource in both our faith and community work. Volunteers are involved in most of our faith and community activities and are regularly giving their time. All our Trustees also give their time freely. We encourage all Members of our mosque to be involved in voluntary activities and to share their skills with others.

Activities and achievements

How our activities deliver public benefit

The charity carries out a wide range of activities in pursuance of its charitable aims. The Trustees consider that these activities, summarised below, provide benefit both to those who worship at the Mosque and to the wider community of Nuneaton.

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NUNEATON MUSLIM SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

The Society has around 412 members and the Mosque is open to all (including non-members) for daily Namaaz prayers, Friday prayers, Taraweeh prayers during Ramadan, and Eid prayers. These prayers are well attended by not only the people of Nuneaton but also from the surrounding areas.

Madrasah classes for religious education and Hifz classes for memorisation of the Holy Quran are also in place with around 232 madrasah students, and 12 Hifz students attending the daily classes.

Throughout the year, various programmes and events were organised for the community to educate in Islamic teachings. These were publicised through public announcements, social media and delivered by highly respected scholars.

During the month of Ramadan, the Mosques remained open for Taraweeh prayers, and various educational and religious talks were organised. The Society was fortunate to have Maulana Vanker and Maulana Motala together with his wife gracing their visit from South Africa. They provided inspirational and topical talks throughout the month including programmes specifically for the sisters. It was encouraging to see the Mosque being the focal and vibrant point throughout the holy month.

Sadly, one Imam tendered its resignation in May 2022, and a recruitment for the new Imam is still ongoing.

Funeral facilities are provided in line with the teachings of Islam together with the provision of ghusl (i.e. cleaning the deceased’s body before burial), and Janazah prayer facilities. A feasibility study of moving the burial facility into an external dedicated space is still ongoing.

The Society is an active member of the faith community forums and regularly shares ideas and understanding of various faiths. It also maintained regular dialogues with key partners including local authorities and police departments.

The plans to refurbish the Community Centre are still ongoing with further updated plans being submitted for an outline planning permission as a result of findings from the Topographical Survey.

As part of the improvement program, the fire alarm system in the Mosque was upgraded for £10,120 of which £7,624 was financed by donations received from the members. A replacement commercial dryer was also installed for £4,900. The issue of outstanding carpet payment was resolved with a full and final settlement of £4,500 against an accrued liability of £18,000 thus releasing around £13,500 of cost against repairs and renewals.

Further improvement works need to be carried out to the Mosque roof including the Dome. Appropriate consultation is being performed with specialist contractors to obtain an understanding of the extent of the work required and the cost.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three months' expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of the reserve has been maintained throughout the year.

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NUNEATON MUSLIM SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

Principal funding sources

The charity’s main source of income is giving.

The incoming resources from generated funds of all three activities amounted to £208,761 (2021: £186,617) representing an overall increase of around 12%. The increase is mostly attributed to Lillah donations and income from five flats, and a house rental income.

Throughout the year, various appeal funds and specific donations amounted to £31,071 (2021: £7,000). These are set out in the accounting Note 7 (Restricted Funds), and included major disaster appeals for Afghanistan Earthquake and Pakistan Flood Relief.

Gift aid recovery in the year amounted to £7,503 (2021: £3,577).

Finally, as always, I thank every one of you for your Duaas and support. The events of the year have been challenging and required many difficult decisions. It is through the sheer mercy of Allah (SWT) and your assistance that we have been able to continue serving our community.

May Allah (SWT) reward you all abundantly, Ameen.

...........................................................................................................

For and on behalf of the Nuneaton Muslim Society Mohammed Shafi Khalifa (Interim President)

Approved by the Trustees on 23 May 2023

6

NUNEATON MUSLIM SOCIETY

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF NUNEATON MUSLIM SOCIETY

I report on the accounts of the Nuneaton Muslim Society for the year ended 31 December 2022, which are set out on pages 8 to 16.

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. In accordance with the requirements of the Charities Act 2011 (“the Act”).

It is my responsibility to:

Basis of examiner’s statement

My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters.

Independent examiner’s statement

I have completed my examination. In connection with my examination, I have no concerns and confirm that no material matters have come to my attention in connection with the examination:

I Sidat Sidat & Co Accountants

26 Abbeydore Grove, Monkston Milton Keynes MK10 9HH

23 May 2023

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NUNEATON MUSLIM SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES – MASJID AND MADRASAH FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestric- Restricted Total Total Funds
ted Funds Funds Funds 2022 2021
£ £ £ £
Income from
Incoming resources from generated funds
Incoming resources from charitable activities
Membership fees 14,448 - 14,448 17,226
Madrasah fees 63,527 - 63,527 68,958
Voluntary income:
Friday Lillah donation 16,620 - 16,620 17,875
Lillah donation 22,537 - 22,537 9,229
Eid day collection 3,215 - 3,215 1,374
House Box collection 360 - 360 255
Tabligh Jamaat donation 450 - 450 339
Nikah fees 118 - 118 251
Repairs – fire alarm system upgrade donation - 7,624 7,624 -
Imtehan/graduation prizes donation - 4,399 4,399 -
Investment income:
Bank deposit interest received 29 - 29 50
Activities for generating funds:
Rental income – Flats and house 33,503 - 33,503 22,090
Rental income – Community centre and
utensils 7,831 - 7,831 6,773
Other incoming resources:
Gift aid tax recovery 7,503 - 7,503 3,577
-------------- -------------- -------------- --------------
Total incoming resources 170,141 12,023 182,164 147,997
======== ======== ======== ========

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NUNEATON MUSLIM SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES – MASJID AND MADRASAH FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

Unrestric- Restricted Total Total Funds
ted Funds Funds Funds 2022 2021
£ £ £ £
Total incoming resources 170,141 12,023 182,164 147,997
======== ======== ======== ========
Expenditure on
Cost of generating funds
Gas 9,143 - 9,143 8,809
Electricity 8,097 - 8,097 3,133
Council tax 434 - 434 (126)
Repairs and maintenance 2,509 7,624 10,133 9,662
Insurance 2,714 - 2,714 4,136
Water charges 1,671 - 1,671 3,587
Cleaning, gardening and laundry 1,268 - 1,268 217
Depreciation 923 - 923 1,042
-------------- -------------- -------------- --------------
26,759 7,624 34,383 30,460
-------------- -------------- -------------- --------------
Support costs:
Imam’s salary, employers' NIC and pension 23,570 - 23,570 29,629
Madrasah expenses 69,571 - 69,571 58,882
Furlough claims - - - (644)
Ramadan expenses 8,400 - 8,400 2,091
Imtehan/ graduation prizes 159 4,399 4,558 1,260
Telephone - - - 156
Printing, postage and stationery 312 - 312 836
Computer and software subscription 1,320 - 1,320 -
Professional fees – Community Centre Project 5,748 - 5,748 -
Property letting agent commission 1,400 - 1,400 -
Miscellaneous expenses 75 - 75 4,029
Bank charges 72 - 72 -
-------------- -------------- -------------- --------------
110,627 4,399 115,026 96,239
-------------- -------------- -------------- --------------
Total resources expended 137,386 12,023 149,409 126,699
======== ======== ======== ========
Net income/(deficiency) resources 32,755 - 32,755 21,298
Other incoming resources
Appeal funds and specific donations received - 31,071 31,071 7,000
Appeal funds and specific donations re-donated - (29,756) (29,756) (4,798)
-------------- -------------- -------------- --------------
Net movement in funds £ 32,755 £ 1,315 £ 34,070 £ 23,500
======== ======== ======== ========

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NUNEATON MUSLIM SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES – BOOKSHOP & KITAB FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
£ £ £ £
Turnover
Sales 12,428 16,718
Cost of sales
Opening stock at 1 January 2022 1,552 475
Purchases 23,637 15,775
-------------- --------------
25,189 16,250
Closing stock at 31 December 2022 (14,206) (1,552)
-------------- --------------
(10,983) (14,698)
-------------- --------------
1,445 2,020
Less expenses - -
-------------- --------------
Net surplus / (deficiency) £ 1,445 £ 2,020
======== ========

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NUNEATON MUSLIM SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES – BURIAL FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2022 2021
£ £ £ £
Income
Burial charges 3,875 4,257
Cemetery fee recharged 22,068 28,567
Lillah donation received 249 6
-------------- --------------
26,192 32,830
Expenses
Cemetery fee charges by NBBC 22,068 28,787
Purchase of coffins and kafan materials 2,251 3,155
External burial services 385 -
Funeral car insurance and road tax 877 1,245
Depreciation – funeral car 1,295 1,726
-------------- --------------
(26,876) (34,913)
-------------- --------------
Net surplus / (deficiency) £ (684) £ (2,083)
======== ========

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NUNEATON MUSLIM SOCIETY

BALANCE SHEET AS AT 31 DECEMBER 2022

Note 2022 2021
£ £ £ £
Fixed assets 6 1,493,311 1,296,390
Current assets
Stocks 14,206 -
Prepayments - 6,225
Cash at bank 74.932 205,228
-------------- --------------
Total current assets 89,138 211,453
Liabilities
Creditors falling due within one year
Accruals (14,775) (22,862)
-------------- --------------
74,363 188,591
-------------- --------------
Net assets £ 1,567,674 £ 1,484,981
======== ========
The funds of the charity
Unrestricted funds 7 1,566,359 1,484,981
Restricted funds 7 1,315 -
-------------- --------------
Total charity funds £ 1,567,674 £ 1,484,981
======== ========

………………………………………………………

Mohammed Shafi Khalifa (Interim President)

……………………………………………...

Mustafa Khalifa (Secretary)

……………………………………………...

Zahir Aadam (Treasurer)

Approved by the Board of Trustees on 23 May 2023

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NUNEATON MUSLIM SOCIETY

1. Statement of Trustees' responsibilities

The charity trustees are responsible for preparing an annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees for the purposes of charity law who served during the year and up to the date of this report are set out in the Administrative Details of the Charity on page 2.

2. Accounting policies

(a) Basis of preparation

The financial statements have been prepared under the historic cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2015), and applicable UK Accounting Standards and the Charities Act 2011.

(b) Funds structure

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have set aside resources for a specific purpose.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or the terms of a specific appeal.

(c) Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

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NUNEATON MUSLIM SOCIETY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

(d) Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

(e) Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised and at historic cost. Fixed assets are stated at cost less accumulated depreciation. The freehold property is valued at historic cost and it is not depreciated, as the properties are considered to have a useful life as a building of greater than 50 years and so any depreciation charge is considered immaterial.

Depreciation is charged as follows:

Funeral car - 25% written down value Fixtures, fittings and equipment - 20% written down value Utensils & cutlery - 20% written down value

3. Trustees remuneration

No trustee received remuneration.

4. Staff costs

Staff costs totalling £93,141 (2021: £87,867) related to payments made to 20 employees (2021: 18). No amounts were reimbursed specifically for travelling expenses.

5. Fees for independent examination of the accounts

No fees were paid for the independent examination of the accounts.

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NUNEATON MUSLIM SOCIETY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)

6. Fixed assets: tangible assets

Freehold Fixtures,
Land & Fittings & Funeral Utensils
Buildings Equipment Car & Cutlery Total
£ £ £ £ £
Cost
At 1 January 2022 1,292,219 63,931 - 2,559 1,358,709
Transfers - - 17.456 - 17,456
Additions 193,517 443 - - 193,960
-------------- -------------- -------------- -------------- --------------
At 31 December 2022 1,485,736 64,374 17,456 2,559 1,570,125
======== ======== ======== ======== ========
Depreciation
At 1 January 2022 - 59,765 - 2,554 62,319
Transfers - - 12,277 - 12,277
Charge for the year - 922 1,295 1 2,218
-------------- -------------- -------------- -------------- --------------
At 31 December 2022 - 60,687 13,572 2,555 76,814
======== ======== ======== ======== ========
Net Book Value
At 31 December 2022 £ 1,485,736 £ 3,687 £ 3,884 £ 4 £ 1,493,311
======== ======== ======== ======== ========
At 31 December 2021 £ 1,292,219 £ 4,166 £ - £ 5 £ 1,296,390
======== ======== ======== ======== ========

The Title Deeds for the freehold land and buildings are held in the name of “The Trustees of Nuneaton Muslim Society”.

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NUNEATON MUSLIM SOCIETY

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

(continued)

7. Analysis of charitable funds

Transfer
reserves
Analysis of Fund Balance bookshop Incoming Resources
Movements b/fwd & burial resources expended Transfers Funds c/fwd
£ £ £ £ £ £
Unrestricted funds:
Masjid and madrasah 1,484,981 - 170,141 (137,386) - 1,517,736
Bookshop and kitab - 26,940 12,428 (10,983) - 28,385
Burial - 20,922 26,192 (26,876) - 20,238
-------------- -------------- -------------- -------------- -------------- --------------
£ 1,484,981 £ 47,862 £ 208,761 £ (175,245) £ - £ 1,566,359
======== ======== ======== ======== ======== ========
Transfer
reserves
Analysis of Fund Balance bookshop Incoming Resources
Movements b/fwd & burial resources expended Transfers Funds c/fwd
£ £ £ £ £ £
Restricted funds:
Afghanistan Earthquake - - 7,174 (7,248) 74 -
Pakistan Flood Relief - - 14,928 (15,000) 72 -
TransContinental - - 2,000 (2,158) 158 -
Mazahir Uloom -
Saharanpur - - 836 (955) 119 -
Darul Uloom Deoband - - 986 (1,054) 68 -
Maulana Anwar Allam - - 426 (1,454) 1,028 -
Darul Uloom Gango - - 443 (443) - -
Qurbani - - 40 (40) - -
Zakat and Fitra - - 4,238 (1,404) (1,519) 1,315
-------------- -------------- -------------- -------------- -------------- --------------
£ - £ - £ 31,071 £ (29,756) £ - £ 1,315
======== ======== ======== ======== ======== ========
Total £ 1,484,981 £ 47,862 £ 239,832 £ (205,001) £ - £ 1,567,674
======== ======== ======== ======== ======== ========

16