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2021-03-31-accounts

FURNITURE RESOURCE CENTRE LIMITED Furniture Resource Centre Limited Integrated Report 2020/21

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CONTENTS

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GLOSSARY

Our mission

To reduce and ultimately eradicate furniture poverty.

FRC Group

Throughout the document when we reference FRC Group, we mean the group of charities under the control of Furniture Resource Centre Limited and includes all our businesses.

End Furniture Poverty

Our campaign to raise awareness of furniture poverty and create practical solutions to get furniture to people who need it.

Our objectives are:

Our Values:

Furniture Resource Centre Limited

Sells furniture and accessories to turn a house into a home, business-to-business, to a customer base that includes housing associations, local authorities, charities and construction companies.

Providing quality, accredited, contract standard furniture in a range of products and finishes to suit different styles, requirements, timescale needs and budgets. Leading the way in furnishing multiple types of accommodation throughout the UK, from furnishing hostels, refugee, temporary, emergency and next steps accommodation, to furnished tenancies, student accommodation and individual domestic properties.

Buckingham Interiors

Provides design, supply, installation and delivery of furniture and interiors for sheltered living, independent living and extra care accommodations including full dementia schemes. Offering a bespoke full-service package delivering stylish, interior design led projects, and delivering the optimum solution to meet and exceed specific requirements.

Bulky Bob’s

Provides a bulky household waste collection service to local authorities, collecting unwanted items from homes and assessing them for reuse and recycling.

Bulky Bob’s Furniture World

Sells the good quality preloved furniture collected by the Bulky Bob’s collection teams.

Bulky Bob’s for Business

Offers IT equipment collections, office furniture collections and mattress cleaning and collection for reuse.

When we talk about 10 Essential Items, we mean:

The essential furniture items that every household should have access to in order to live a decent life.

Driving Change

Driving Change is our training and employment programme with an aim to help people secure higher-paid employment elsewhere when they have finished their training.

ViPs (Volunteers, Interns, Placements and Students)

ViP is our volunteering programme. Through this scheme, people can work towards their own goals or give to charity by volunteering their time and skills.

Social Value

Social Value is the quantification of the relative importance that people place on the changes they experience in their lives. At FRC Group we measure the social value we create in all of our furniture related activity. Our qualitative and quantitative statements which are audited are highlighted throughout this report with this symbol.

Data assured, this icon shows which data

points have been audited

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STRATEGIC EPORT li li 11

WELCOME AND ACKNOWLEDGMENTS

This is the eighth integrated report from FRC Group. It tracks our progress through the group’s 32nd year of service, a year we are immensely proud of. This report looks at the financial year of April 2020 – March 2021, a year which brought massive challenges and hurdles due to the COVID-19 pandemic. Our FRC Group team were strong, resilient and more determined than ever to continue to deliver a service that helped the people we exist to serve. It was a year of struggles and hardship for many – but also a year of success. We could not have achieved this without our people and forthat we are truly thankful.

Our approach to reporting this year has been different. Each year we aim to give a comprehensive view of all of our achievements in the year and also to acknowledge any areas that haven’t quite gone to plan. We strive to fully demonstrate the impacts of our operations and programmes, both intended and unintended, on all of our stakeholders and to highlight our targets for creating more impact in the following year.

This more focused approach to our reporting has been necessary, but it has also provided us with an opportunity to evaluate how we can take this way of thinking, and apply it to the measurement of our social value going forward. In 2021-22 we will be using this more targeted method of measurement to simplify our reporting, and allow us to focus less on the measurement and more on the management of our impact.

In response to business needs following the Covid-19 pandemic, our ability to produce such a detailed review as previous years in 2020-21 was impaired. Our report for 2019-20 was shorter, including less case studies and background information but our focus remained the same. It is greatly important to FRC Group that we continue to examine our performance, to understand the outcomes achieved for our stakeholders during the year and to use this information to improve, creating more impact in the areas that most benefit in the future.

Combining this methodology with the results of our study, The Value of Essential Furniture, carried out in conjunction with Liverpool City Council and More Than Outputs, we are provided with an updated measure that gives us real insight into how we and the organisations we work with are supporting those in need of essential items of furniture. This renewed insight will inform and improve our decision making as a social business and much better aligns these decisions with our core mission to end furniture poverty.

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areas that most benefit in the future.
THANK YOU
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OVERVIEW OF 2020/21

2020/21 is year none of us will ever forget, when the World Health Organisation (WHO) declared Covid-19 a pandemic. Since the first case of infection was reported in China in December 2019, millions of people across the world have died. Beginning as an unexplained, pneumonia-like illness, it brought most of the world to a near-standstill for the last year. However, at FRC Group, we refused to standstill and we also worked hard to keep our people safe and to support their welfare through the pandemic. We knew the impact that the pandemic would have on those people most in need of our services, and we worked tirelessly to ensure that where we could legally and safely operate, we did.

In this report, we look at our performance during a year that changed the world forever. Ending furniture poverty remains the beating heart of FRC Group. This year we have worked to raise awareness of furniture poverty, to educate people about the potential solutions and, ultimately, to ensure that everyone has access to the essential furniture and goods they need to lead a secure life.

Due to the Covid-19 pandemic, we struggled to be on plan with all of our stakeholder feedback programmes, but used feedback received in previous years to deliver our services, and to improve our offering.

A huge progression this year has been our ability to use the results of our study on The Value of Essential Furniture. This renewed insight has informed and improved our decision-making and social value measurement processes, all with the view to continue on the road to end furniture poverty.

Last year, in response to business needs following the Covid-19 pandemic, our ability to produce such a detailed review of the financial year 2019-20 was impaired and we produced a much a shorter report. However, feedback from our stakeholders who read the report, told us that the shorter report was easier to read and easier to understand our impact. Therefore, this year, we continue on our journey towards trying to provide a more succinct report which examines our performance, and to use this information to improve and create more impact in the future.

This year we:

Donated free furniture to people who need it to the financial value of £68,369 (2019-20: £79,283)

This includes

(2019-20: £55,775)

After the first lockdown, we reopened our store for Crisis donations and donated furniture to the value of £61,436 (2019-20: £78,560)

Gave discounted furniture to 1,832 customers through Bulky Bob’s Furniture World. (2019-20: 3204)

Total number preloved sales to BBFW customers Liverpool 2068 (2019-20: 4,141) Oldham 252 (2019-20: 197) North East 0 (2019-20: 0)

Delivered free furniture to 466 families in crisis situations (2019-20: 551).

We delivered 3 Free Furniture Community Events (2019-20: 0)

Delivered 99 items of free furniture through our new contract in North Tyneside (2019-20: 182)

Bulky Bob’s completed 42,484 collection requests on behalf of councils (2019-20: 56,744)

Reused & recycled 1486 tonnes of furniture, appliances and other bulky waste (excluding mattresses) (2019-20: 1,664)

Bulky Bob’s recycled in the region of 2501 mattresses (based on average weights) (2019-20: 8,335)

87.5 tonnes of mattresses were diverted from landfill (2019-20: 292)

During 2020/21 we UltraCleaned 538 mattresses. (2019-20: 931)

Of these:

191 were gifted to people in furniture poverty (2019-20: 200)

312 were sold at low cost to families living on low incomes (2019-20: 651) 34 were sold to distributors who sold them at low cost to their own customer living on low incomes (2019-20: 80)

Financial value of donated mattresses and bed bases £10,240 (2019-20: £11,050)

We sold a total of 158 low cost reuse PCs & laptops to schools and community groups. (2019-20: 0)

Through Furniture Resource Centre Limited we made 24,540 deliveries of furniture to people’s homes (2019-20: 22,121)

We distributed 55,308 items of essential furniture. (2019-20: Not recorded) We worked with 15 trainees (2019-20: 21) We worked with 5 kickstarters (2019-20: N/A) We worked with 1 apprentice (2019-20: 0)

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SOCIAL VALUE

Social Value is the quantification of the relative importance that people place on the changes they experience in their lives. At FRC Group we measure the social value we create in all of our furniture related activity.

BBFW Sales £665,500 FRC LWP BBFW Crisis £858,500 £370,500 £2,848,000 BBFW Free4all FRC Other £198,000 £345,000 Furnished BBFW LWP Tenancies £307,500 £102,500

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COMPANY INFORMATION AS OF 31 MARCH 2021

Registered Office

Company Number 2296329 (England and Wales)

Atlantic Way Brunswick Business Park Liverpool L3 4BE

Charity Number 700731

Directors

Bankers

N Wilson E Bichard L Dixon J Hines

NatWest Bank 2-8 Church Street Liverpool L1 3BG

J Nicholls J Vernon E Leach (Appointed 3 March 2021)

Auditors

Crowe U.K. LLP The Lexicon

Secretary

Mount Street Manchester M2 5NL

A Rowan

Chief Executive

Solicitors

S Doran

Brabners

Horton House Exchange Flags Liverpool L2 3YL

Strategic Decision-Making

Meeting Our Objectives

FRC Group’s Board of Trustees sets the strategic direction at an annual planning meeting that establishes the priorities for the year ahead.

To ensure that our work always delivers the right benefits for our stakeholders, we constantly monitor and assess activities and outcomes throughout the year.

The board is informed at its regular meetings of progress against these agreed strategic priorities.

This helps us both to focus on desired outcomes and consider whether as much social and financial value as possible is being created in all areas of our work.

When issues arise during the year that require the board’s agreement to a strategic-level response, they are discussed at the next scheduled board meeting or, if necessary, at a specially convened meeting.

Regular monitoring means we can continually improve outcomes by adjusting our ways of working and developing new approaches where necessary.

Our financial and social performance is reviewed each quarter at board meetings. This report summarises our annual results in the form of financial statements and quantitative and qualitative social value data.

The board has three sub-committees which meet as required: Finance, Measuring Social Value and Remuneration. These committees make recommendations to the full board in their areas of specialism.

We also record ‘responsiveness’ and detail the changes that have been made to policies, procedures, services or products in relation to feedback. Responsiveness is one of the cornerstones of accounting for social value and we record it to drive change.

Trustees

The directors of FRC Group’s charitable companies are their trustees for the purpose of charity law and throughout this report are collectively referred to as directors and are listed on page 14. The directors are appointed by the members at the Annual General Meeting but can be co-opted between AGMs by the board pending election. Before being co-opted, prospective trustees are invited to observe meetings to learn more about the charity and to meet the other trustees. During this induction process, the candidate meets the chair of trustees and the senior management team, and visits different parts of the business to meet staff. Trustee training takes place whenever training needs are identified.

For instance, recent training has covered the principles used to calculate the social value that FRC Group generates. A Scheme of Delegation agreed between the trustees and the senior management team details which decisions the senior management team are authorised to take and which must be referred to the trustees. Decisions can be taken by trustees by email if a decision is needed before the next scheduled trustee meeting. All of the directors give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are shown in note 10 to the accounts.

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OUR AIMS, OBJECTIVES AND ACHIEVEMENTS

FRC Group is a collection of social businesses run by Furniture Resource Centre Limited, a registered charity. The purposes of the charity are set out in the company’s memorandum of association as follows:

To relieve, either generally or individually, persons who are in conditions of need, hardship or distress by the provision of furniture and other household accessories calculated to reduce the need, hardship or distress of such persons.

To promote any charitable purpose for the To advance education and relieve need benefit of the public and in particular the by providing or assisting in the provision advancement of education and training, the relief of training and by providing guidance for such of poverty, distress and sickness and charitable people as are in need, calculated to enable them purposes connected with the improvement to earn their own living. of the environment.

In the day-to-day running of the organisation, we use these words to describe what we do:

FRC Group’s vision is of a society where people can obtain good quality, affordable furniture without experiencing the devastating impacts of furniture poverty – no bed to sleep on or unmanageable debts.

Our mission is to reduce and ultimately eradicate furniture poverty. We campaign to raise awareness of furniture poverty and create practical solutions to get furniture to people who need it. Our work also helps create sustainable employment and better futures for people.

To deliver on these objectives, FRC Group is made up of the following businesses / initiatives:

End Furniture Poverty, Furniture Resource Centre Limited, Buckingham Interiors, Bulky Bob’s for Business, Bulky Bob’s Furniture World, Bulky Bob’s Office and Commercial Waste Services and Reuse IT.

Statement of Public Benefit

FRC Group ensures that its aims and objectives are achieved through a variety of ways as detailed in the Creating Social Value section of this report on pages 30 to 44. This includes lobbying and campaigning for the eradication of furniture poverty, providing furniture packages to a variety of customers, giving furniture free of charge to people in need and also by the provision of a training programme for formerly long-term unemployed people or people on low income. The trustees therefore confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

Structure, Governance and Management Governing Document

Furniture Resource Centre Limited is a charitable company limited by guarantee and does not have any share capital. It was incorporated on 14 September 1988 and registered as a charity on 17 November 1988. The company is governed by its Memorandum and Articles of Association dated 8 August 2014.

Related Parties

Bulky Bob’s 2015 is a charity with Furniture Resource Centre Limited as its sole member. The assets, liabilities and trade of Bulky Bob’s Limited was transferred to Bulky Bob’s 2015 with effect from 1 April 2017 with the charity commencing trading from that date. Bulky Bob’s 2015 provides services, mainly to local authorities, for the collection and recycling of bulky household waste. Bulky Bob’s 2015 provides training and employment opportunities for people from long term unemployment and low paid jobs whilst protecting the environment through the reuse and recycling of collected items.

Bulky Bob’s Office and Commercial Waste, trading as Bulky Bob’s for Business commenced trading on 2 May 2017 and provides an office and commercial bulky furniture item, IT and mattress collection service, collecting, reusing and recycling waste items from businesses. Bulky Bob’s Office and Commercial Waste changed its name from FRC Developments on 15 June 2017. Bulky Bob’s Limited is a wholly owned subsidiary of Furniture Resource Centre Limited and provided bulky household waste collection services to local authority customers. The assets, liabilities and trade of Bulky Bob’s Limited were transferred to Bulky Bob’s 2015 on 1 April 2017 and Bulky Bob’s Limited ceased trading on that date.

Investment powers and policy

The company has the power to invest monies not immediately required in investments, securities or property as may be thought fit.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

The structure of FRC Group is as follows:

METHODOLOGY

Report covers FRC Group’s financial and Feedback from FRC Group’s 1 April 20 to social impacts from all parts stakeholders is also collected, 31 March 21. of organisation. although the collection of data was limited this year due to the Covid-19 pandemic. Full details of this stakeholder consultation starts on page 50. Report is published on The annual report is The financial elements of this FRC Group’s website independently audited report are compiled and written (frcgroup.co.uk) so that our performance in accordance with applicable measurement is supported law and United Kingdom by robust systems and Accounting Standards (United processes. The auditors Kingdom Generally Accepted of this report, Crowe U.K. Accounting Practice), and the LLP, have provided social elements are written in assurance. accordance with the principles of the AA1000 AS (2008): those of inclusivity, materiality and responsiveness.

To communicate clearly how performance in this report compares to targets and priorities agreed for the year, the following symbols are used:

Met or exceeded target.

Made some progress but needs Missed the mark and will to improve further. For numerical plan to improve performance. targets, this symbol indicates achievement of at least 90% of the performance target.

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SOCIAL VALUE REVIEW 2020-2021

We completed our study on the social value created when distributing the essential items of furniture.

Social value is the quantification of the relative importance that people place on the changes they experience in their lives. End Furniture Poverty had previously developed the definition of furniture poverty above to assist in defining what the ‘essential furniture’ items are that a household needs to have in order to be in furniture security.

This study allowed us to measure the social return on the investment on furniture items, to identify the most valuable outcomes and to design a simple monitoring system (or calculator) to measure the value created by providing essential furniture going forward.

Our research told us of the changes that happened as a result of receiving furniture. Recipients told us that they were:

The items on this list are:

• Had more freedom and increased independence • Were able to provide for the family • Had improved mental health • Worried less about money • Had improved relationships • Felt less isolated • Has improved physical health • Felt proud of Liverpool

In 2020-2021 we distributed 55,308 essential items of furniture to people and created a social value of £2,848,000.

Items Total
2020-21
Value
Created		 Total
2019-20
Value
Created		 Commentary
on differences		 2021-22
Target		 Plans to
achieve target
1. BBFW Sales £665,500 £1,308,500 Extended periods of store closure
due to Covid restrictions severely
impacted results.		 £1,752,500 Return to normal sales level
expected due to removal of
Covid-19 restrictions. Planned
increase in items made available
for sale from restoration activities.
2. BBFW Crisis £370,500 £509,000 Restrictions and social distancing
measures reduced our capacity to
safely administer similar volumes
of referrals.		 £586,000 Return to normal sales level
expected due to removal of
Covid-19 restrictions. Planned
increase in items made available
for sale from restoration activities.
3. BBFW Free4All £198,000 £0 No events took place in 2019-20. £59,000 One off in-store events due to
essential retail closures not
expected to repeat but smaller
scale events planned.
4. BBFW LWP £102,500 £176,500 Restrictions and social distancing
measures reduced our capacity
to follow up on, and safely
administer, similar volumes
of awards.		 £116,000 Increase on 20-21 expected due
to removal of Covid-19 restriction
but offset by expected reduced
awards.
5. FT (EFP) £0 Not
recorded		 N/A £0 Activity unpredictable, can take
many years to establish, so no
planned value in this category.
6. FT (Existing) £307,500 Not
recorded		 N/A £305,000 Maintain activity as in prior year,
no signifcant change expected.
7. FRC Other £345,000 Not
recorded		 N/A £418,000 Expected to increase slightly in
line with sales expectations but
no signifcant change.
8. FRC LWP £858,500 Not
recorded		 N/A £637,500 Reduction in awards anticipated
in 2021/22, following higher than
usual levels in previous year.
9. Buckingham
Interiors		 £0 N/A N/A £0 N/A
Total £2,848,000 £1,994,000 £3,874,500

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FRC Group Income 2020/21

FINANCIAL REVIEW 2020 –2021

Financial Performance

Reserves Policy

2020-21 saw a continuation of the growth experienced in recent years with total group income increasing for the fourth consecutive year and up 7.0% on 2019-20 to £13.17m. Expenditure increased by 7.5% compared to 2019-20, leaving a group net surplus of £301,188 (2019-20: £338,494).

The trustees have considered the level of free reserves (those funds not tied up in fixed assets and restricted funds) required by the group to be at least six months’ operational expenditure plus sufficient cash for future plans, which amounts to at least £3,800,000. In the trustees’ view, this level of reserves should provide adequate financial stability and enable the group to continue to meet its charitable objectives for the foreseeable future.

Whilst the Covid-19 pandemic has presented many challenges to organisations and individuals, the overall financial performance of the group has not been significantly impacted due to the essential nature of the majority of the group’s services, which have continued throughout the majority of 2020-21.

In arriving at this figure, the trustees have considered potential future changes in income streams and likely future cash flow requirements. The trustees will continue to monitor the Reserves Policy at least annually in trustee meetings. At 31 March 2021, consolidated free reserves of £2,321,652 were held, which is £1,478,348 short of the required consolidated total of £3,800,000. Restricted reserves amount to £8,810 and total reserves of £2,870,570.

Principal Funding Sources

The principal source of funding for the charity and group is the revenue generated from the sales of high-quality furniture, fittings and accessories to social landlords and local authorities. In addition to this, revenue is generated through contracts with local authorities for the collection of furniture, from the sale of ‘pre-loved’ furniture, from the sale of waste collection services and also through grant income.

Grants and Donations

The group continues to expand the social impact it creates through the effective use of the grants and donations it receives. During 2020-21, grants and donations were received from Made Smarter and the Government’s Kickstart training scheme along with Covid-19 Financial support from the Government’s Coronavirus Job Retention Scheme, Liverpool City Council and Wirral Council. In addition, a donation was also received towards our Bulky Bob’s Furniture World retail store. 1.7% of our income was from grants.

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£882,487
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£224,291
£11,759,024
£104,165
£100,030
£104,684
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Provision of furniture and furniture packages Provision of other recycling services Provision of bulky household waste collection and recycling services Donations and legacies (grants and donations received) Charity Shop Sales

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£404,076
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FRC Group Expenditure 2020/21

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£947,690
£82,364
£285,839
£368,153
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£10,783,371
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Provision of furniture and furniture packages Provision of other recycling services

Provision of bulky household waste collection and recycling services Other expenditure

Charity Shop Sales

People Development

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Plans for the future

We will continue to grow our customer base in Furniture Resource Centre, particularly through the provision of furniture to social landlords and Local Authorities and through large scale refurbishments of shared living environments. We are implementing SAP Business One as our core system to facilitate our business processes and this will further improve our efficiency and the high level of customer service already provided. Our aim is to remain the leading provider of furniture to furnished tenancy providers and to continue to grow our customer base as we continue to work towards our mission of ending furniture poverty. We are also working to introduce preloved furniture into our offer to customers who traditionally purchase new furniture.

At Bulky Bob’s Furniture World, our retail outlet, we will continue to provide a wide range of essential furniture at affordable prices to disadvantaged groups such as those on relatively low income. We will also strive to reach more people with free or affordable furniture through increasing our links with referral agencies and raising the profile of the store. Ways of making greater use of the good quality affordable furniture collected will continue to be investigated with more innovative processes introduced.

The Reuse-IT business in Bulky Bob’s for Business will continue to grow and provide affordable refurbished PCs to schools, charities and other organisations with 20% of PCs being given away free of charge to people who can’t afford a new PC.

We will continue to work with long-term unemployed people and people on relatively low income through our training programme so that our assistance continues to reach those most in need.

Risk

Each quarter, we fully review the commercial and social impact risks faced by the group. Each risk is rated and we consider what mitigating actions are available. Key residual risks to which the group is exposed are set out in the following table.

RISK MITIGATION
Retention of key contracts. Focus on world-class customer service
and value for money for customers.
Introduction of innovative ideas to contracts.
Growth of other contracts and businesses to possibly
take the place of any contracts not retained.
Negative impact of Brexit e.g. supplier price Dual sourcing of key stock items.
increases higher than anticipated or shortages
of certain stock items. Building up supplies.
Stock supply issues due to Covid-19 pandemic Dual sourcing of key stock items.
causing manufacturing and export delays.
Building up supplies of various stock lines to ensure
continuity of supply in the event of shortages.
Availability of pre-loved furniture. Identifcation of alternative sources
of pre-loved furniture.
Continued development of innovative ideas to refurbish
pre-loved furniture e.g. mattress cleaning machine.

The directors are satisfied that reasonable steps have been taken to identify all commercial and social impact risks to which the group is exposed and that action has been taken to mitigate these risks where necessary.

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Trends and Factors

The continuing economic downturn and the impact of the Covid-19 pandemic has left more people in furniture poverty – the inability to afford or access the basic household goods that establish a decent quality of life. To address this issue, FRC Group runs its End Furniture Poverty campaign which aims to research furniture poverty, increase understanding of this hidden but widespread issue and encourage organisations to adopt practical solutions to furniture poverty. The goal is to ensure that everyone in society can afford or access the furniture they need for a decent quality of life.

The continuing economic downturn has also resulted in a reduction in the budgets of various customers despite increases in demand for furniture caused by the Covid-19 pandemic. As a result, the demand for more cost-effective furniture has increased, which the group is addressing through continued innovation in finding ways to offer good quality refurbished furniture at a more affordable price.

The long economic downturn and Covid-19 pandemic has put more people in less well-paid work than they might have aspired to in the past. This trend has been a key motivation behind FRC Group’s Driving Change programme, which offers salaried employment and training to the long-term unemployed and those in low-paid or otherwise insecure jobs. Its aim is to equip people to move on to more secure, higher paid work and give those relatively disadvantaged people an opportunity to move out of poverty.

Research and Development

FRC Group continues to investigate new and innovative ways of re-using furniture items collected. This has included developing the world’s first bespoke mattress cleaning machine, which cleans structurally sound mattresses to a high standard, ready for reuse. This machine was launched in 2020-21 and can clean mattresses that may otherwise have been broken down for recycling before they’re sold in our Bulky Bob’s Furniture World store and in other retail outlets.

Work is continuing in identifying further innovative ways of reusing furniture in order to maximise the reuse of the pre-loved furniture items collected in Ending Furniture Poverty.

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CODE OF GOVERNANCE STATEMENT

The board continue to work towards fully adopting the Charity Commission Code of Governance with those areas for improvement identified following an internal review and also an external review in December 2020. The following is a summary of those areas of compliance against the Code along with areas for improvement.

Organisational Purpose

Integrity

The charity produces an annual impact report which is audited under the AA1000AS framework and is included in the annual integrated report. In addition, the charity quantifies the social value generated from its activities in order to ensure that this is as intended. The governing document was last reviewed in 2014 and is timetabled or review again during 2021/22. Work is ongoing in relation to the sustainability of the charity’s income base.

The board ensures that the charity operates ethically and with integrity at all times, are keen to use the Charity Commission Code of Governance as a tool to assist with improving governance in the charity and have also adopted the Nolan Principles as a code of conduct. The board manage conflicts of interest well and have agreed a formal Conflict of Interest Policy. In addition, a register of interests is maintained for all trustees and senior staff.

Decision Making, Risk and Control

Leadership

A Scheme of Delegation has been agreed between the board, committees and senior staff, which was last reviewed in 2021. Key policies and procedures are to be circulated to the board annually along with recommendations for changes. The board actively monitors performance against a range of targets and a risk matrix is maintained, which is reviewed by trustees at least twice a year. A meeting takes place each year between at least one trustee and the auditors with no staff present in order to obtain honest feedback following the conclusion of the annual financial audit.

The charity has a very strong values culture with the board regularly seeing evidence as to how well this values culture is integrated in the group. Board discussions focus on strategic issues with the role of the board being a ‘critical friend’ when providing feedback to staff, with staff encouraged to bring issues to the board for discussion. The board has a good understanding of current group structure and why this is important, having previously received expert advice from a charity lawyer. Terms of reference for all committees were updated in 2021 along with job descriptions for the role of chair and trustee. Whilst regular meetings take place between the Chair and CEO, formal appraisals are also being introduced. Attendance of trustees at the various meetings is monitored and is good with all trustees attending a majority of the meetings.

Openness and Accountability

Board Effectiveness

The board meets five times a year with further committee meetings also taking place. Each board meeting has a theme with the themes being finance (discussing and agreeing the annual financial and social value budget), people, social value and commercial. Other agenda items are discussed at these meetings but the theme allows for greater time to discuss that particular topic. The fifth annual board meeting has a varied agenda, which is agreed in advance. Ways of monitoring the effectiveness of the board are to be discussed. Discussions take place with potential new trustees in order to ensure that they understand the time commitment necessary and they are then invited to attend two meetings as an observer before being invited to join the board if they wish to. A third of trustees retire by rotation every three years and there is no maximum length of office although this is currently being reviewed with a maximum length of office being considered for introduction. A programme of learning and development for trustees is not currently in place but is to be discussed with a suitable programme then implemented.

Stakeholders have been identified with their feedback sought as part of the production of the annual impact report. This feedback is reviewed by the board and ways of increasing this range of feedback are to be investigated. The salaries of all staff are agreed by the Remuneration Committee and are set using a CIPD job evaluation tool and Salary Search by Croner – the UK’s most comprehensive online salary database to benchmark roles.

Fundraising

The charity did not actively fundraise from individuals during the year but did engage with charitable funding organisations and the Government for the receipt of charitable grants. The charity has not signed up for any voluntary fundraising standard or schemes and no complaints regarding fundraising were received.

Appointment of Auditor

The directors decided to appoint a new auditor for the year ended 31 March 2021 onwards and so Crowe U.K. LLP were appointed as auditor following a tender process.

Diversity

A skills matrix has been produced which identified gaps for trustees in certain areas. Suitable trustees have been recruited with applications for trustees from diverse backgrounds encouraged. The board do not currently have any specific diversity objectives but this is to be considered by the board.

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Creating Social Value

CREATING SOCIAL VALUE

In the next section of this report you can read in more detail progress on each of our objectives.

To understand and highlight the reality of living in furniture poverty

End Furniture Poverty has two main objectives, to understand and highlight the reality of living in furniture poverty, and to lobby and campaign for the eradication of furniture poverty. The two objectives are closely intertwined with in-depth research forming the backbone of our work, raising awareness of the issue and promoting practical solutions which we then use as part of our lobbying and campaigning activity.

No Place like Home

Our major research project for 2020/21 was an examination of the provision of furniture in social housing. The project helped to refine our understanding of the reality of living in Furniture Poverty, and to better understand the barriers to social landlords providing more furnished tenancies. Our research reveals that only 2% of social rented properties are let as furnished or partly furnished (i.e. floor coverings/ curtains) in comparison to 29% of private rented properties.

Key Findings

The social housing sector houses some of the poorest and most vulnerable people in our society, a situation compounded by austerity and the pandemic.

Furniture provision can have a positive impact on tenants’ lives. We found that living without furniture and appliances has a negative impact on tenants’ mental, social, and financial wellbeing.

Tenants and social landlords currently rely on a highly uneven patchwork of options for acquiring furniture, which includes local welfare assistance, high cost credit, and friends and family.

Barriers to the creation of furnished tenancies, include a lack of awareness and understanding of relevant policy, a perceived ‘poverty trap’, financial pressures facing the sector, and the need to convince their respective management structures that providing furniture is financially viable.

Furniture provision is likely to increase tenancy sustainability as it remediates the harmful effects of living without the essential items of furniture and appliances.

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Creating Social Value

Local Welfare Assistance Research

Our research into the provision of furniture in social housing revealed that less than 2% of social housing properties are let as furnished, and it also revealed that there is currently an inadequate patchwork of support. In light of this, we took the decision to delay our planned review of the Essential Items list and bring forward a research project looking at the provision of furniture through Local Welfare Assistance Schemes, (LWAS), a vital lifeline of support for people living in Furniture Poverty.

Our analysis of the data revealed that 25 local authorities in England have closed their LWAS schemes leaving one in five people unable to access crisis support. Several more local authorities also no longer offer furniture through their LWAS which means one in four people in England cannot access furniture through a LWAS. We also discovered that some upper tier local authorities were telling us, and previous researchers, that crisis schemes were being provided by their district councils. However, because we had approached every local authority, we were able to demonstrate that this is not the case, further highlighting the gaps in support.

Performance against targets 2020–2021

Review essential items list.

Publish Furnished Tenancies Research.

Publish Social Return on Investment analysis on the 10 essential items.

Explore the provision of furniture for hard-to-reach groups such as rough sleepers and ex-offenders.

Understand the social value we create under this objective.

Priorities / Targets for 2021 – 2022

To lobby and campaign for the eradication of furniture poverty

We know that Furniture Poverty is ultimately about poverty, it’s about people not having enough money to live on, an inadequate welfare system, rising housing costs, insecure housing, and too many insecure poorly paid jobs. Providing someone with the essential furniture items that they so desperately need is a vital first step, but it is not going to solve all of their problems. Therefore, End Furniture Poverty works closely with a wide range of groups, organisations and charities to try to collectively tackle the root cause of Furniture Poverty – poverty itself.

We joined the End Child Poverty Coalition in early 2021 and were invited to be a signatory of a letter sent to Boris Johnson and another letter published in the Guardian newspaper, asking for child poverty to be put at the heart of the Government’s Covid-19 recovery planning.

Partnership Working

We sit on a number of key bodies:

We had planned to publish this report, The Postcode Lottery of Crisis Support in March 2021, however we had also been in discussions with the BBC about producing a film examining Furniture Poverty and they wanted to use the publication of the report as a news hook so we agreed to delay publication until April 2021.

Digital Presence

47K visitors to our website, a 230% Our Twitter following rose Our mailing list subscribers increase on the previous year from 1174 to 1562 followers increased from 948 to 1171

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Speaking Events

We have been invited to speak at a variety of different events, conferences, webinars and other forums over the past year.

Homes for Cathy
Two speaking events for
homelessness charities		 Covid-19 Frontline Worker
Forum discussion with
Frontline Network
Housemark Scotland
event with their Tenancy
Sustainability Group
Foundations event		 Scottish Housing Network
Local Authority Hub

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Creating Social Value

Grant Makers Alliance

Performance against targets 2020–2021

Our membership of the Grant Makers Alliance is proving extremely valuable. The grant giving sector offer crucial support to people living in Furniture Poverty as many of them provide essential furniture items. Our membership of this group ensures that all the members are reminded that their resources should not be diverted to other sources of support and keeps the focus on furniture provision.

Deliver White Goods 12-Month Warranty campaign.

Deliver campaign to reduce asset stripping by social landlords.

Research the provision of furniture for former rough sleepers and work with partners to develop solutions.

Together we are working on an extensive data project and we plan to use data to reach out to local authorities, Government, other charities, social housing providers and the reuse sector to raise awareness of the importance of furniture provision and explore the possibility of targeted local projects, providing additional support to people living in Furniture Poverty.

Increase End Furniture Poverty mailing list by 20%.

Increase End Furniture Poverty social media following by 30%

Understand the social value we create under this objective.

White Goods 12-Month Warranty Campaign

We had planned to launch this campaign in 2020 however as many of the preloved furniture providers were forced to temporarily close due to Covid-19, and sadly some of them closed, it was clear that it was not the right time. We hope to return to this in 2021/2022 when the sector is back to full strength and ready to consider introducing or extending their white goods warranties.

Priorities / Targets for 2021 – 2022

Asset Stripping by Social Landlords

As with the White Goods Warranty campaign, we took the decision to postpone this work until 2021/22 as social landlords were dealing with Covid-19 challenges and handling preloved furniture would not be viewed positively in the circumstances.

Developing and running successful social businesses that tackle furniture poverty

At FRC Group, all of our businesses are social enterprises and registered charities that exist to tackle furniture poverty. Although all of our businesses are social enterprises, they create social value in different ways. In this section, we look at the businesses that create inherent social value.

Furniture Resource Centre Limited

Performance against targets 2020–2021

Our year has been dominated by the impact of Covid-19 on how we deliver products and services to our local authority and social housing provider customers and the impact of Covid-19 on our supply chain.

Retain existing contracts.

Bring on new customers/contracts.

Explore new markets relevant to FRC products and services.

We operated as an essential service throughout all lockdowns and area restrictions. Following the first lockdown announcement, we swiftly adapted our pre-delivery and delivery processes to help ensure that we could complete Covid-19 safe deliveries for both our staff and customers. During the year we made 24,540 deliveries of essential furniture to people’s homes. This is an increase of 11% on 2020/21.

Continue to develop our range and offer sustainable products.

Priorities / Targets for 2021–2022

Our strong stock holding and dual supply procurement approach ensured that we were able to ensure continuity of supply on the majority of lines throughout the year. Stock availability was vital to our customers who were supporting the most vulnerable at a time of real crisis.

Furniture Resource Centre Limited distributed 55,308 items of essential furniture to people in need.

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Bulky Bob’s

Bulky Bob’s, our bulky household collection service is still driven by our mission to end furniture poverty 21 years on. 2020-2021 was an extremely unusual year for Bulky Bob’s and highlights of the year are detailed below.

Bulky Bob’s Collection services

Collections suspended in April and May due to covid-19.

Collections resumed in June with full Covid-19 precaution measures in place.

Fewer collections were scheduled due to Covid-19.

Even though collections resumed in June, Bulky Bob’s Furniture World remained closed throughout the quarter.

This meant that there was no outlet for any items of great quality, reusable furniture that were collected – and we did not want to dispose of these. We rented a warehouse from Liverpool Council for a short-term period on preferential rates to allow the storage of these items.

The sortation function was transferred to a site and yard at Vandries Street in order to separate the ‘dirty’ functions from the remanufacturing activities which require a clean and orderly operating environment.

As with any move of this nature, there were anticipated and unanticipated challenges that needed addressing. The site is now working well and allows for a greater and more single-minded focus on reuse and recycling.

We ceased servicing Bolton Council from the Oldham site.

12 month extension to Bulky Bob’s Oldham Contract.

Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary
Collections on behalf
of Local Authorities		 59,512 56,744 42,484 Reduced due to period of inactivity at start of initial
lockdown and effect of distancing on number of
collections that could be completed each day
Reused & recycled tonnes of
furniture, appliances and other
bulky waste		 2,035 1,956 1574 In line with reduced collections

Supply of refurbished items through Bulky Bob’s

A significant element of our plan has been the introduction of refurbished products into the supply chain – bed bases, mattresses and white goods. This development was placed on hold during lockdown but is now once again a priority for the Bulky Bob’s team.

Bulky Bob’s started refurbishing bed bases.

Liverpool City Council agreed to start purchasing refurbished bases from FRC from September.

In December the first phase of the installation of our ‘world’s first’ mattress cleaning line – Mattilda – was completed.

The final build was delayed by suppliers and will now see the machine fully operational in 2021-2022. This will be a gamechanger and will clean mattresses with increased speed, efficiency, consistency and in higher volumes.

This is a significant step forward for FRC Group, the reuse world and people living in furniture poverty and is a testament to FRC Group’s ability to identify and understand the terrible life reality for people in desperate need of furniture and to show leadership in identifying and introducing solutions.

Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary		 Year
2018-2019
2019-2020
2020-2021
Commentary
Number of Mattresses 1,265 8,335 2,501 Downtime in cleaning operations due to
installation of machine coupled with period
of inactivity whilst staff furloughed has
impacted reuse & recycling signifcantly.
Tonnes Mattresses diverted
from landfll		 440 292 87.5
Mattresses Cleaned - 941 538
Financial Value of - £4,820 £4,680

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2018 / 2019

2019 / 2020 2020-2021

YEAR

Bulky Bob’s Furniture World

Closed in April and May and reopened partway through June 2021.

On reopening, footfall is reduced in Liverpool and Oldham. Additionally, the measures taken to protect staff and customers requires more staff in store than normal and this has led to the store being closed on Saturdays.

Perversely, Covid-19 has also impacted upon the demand for free furniture. At a time when there is more need for support for people in vulnerable situations, fewer referrals were made to the store by front line agencies.

Lockdown restrictions threatened our ability to operate however, we used our learning from the first lockdown and were able to implement solutions quickly.

We allowed Crisis & LWP customers to select furniture in store for free delivery through an appointment system. This allowed us to adhere to restrictions for non-essential retail, manage the flow of people in store safely, and most importantly ensure that people in need of these essential items were able to access them during this period.

We ran a 3 day ‘Free4All’ furniture giveaway event in Liverpool to help manage surpluses of furniture that had built up from earlier in the year and from large commercial collection jobs. This was very well attended and we were able to giveaway 197 items of essential furniture.

When non-essential retail was no longer allowed to remain open, we were able to take the giveaway model and run alongside crisis & LWP to offer appointments for people to come into store and select free of charge items of essential furniture.

When lockdown restrictions lifted at the beginning of December, we were able to deliver one final Free4All event in Q3 at ‘The Commy’ in Speke. We were able to provide essential items of furniture to 54 households at this event.

To prepare for reopening in Liverpool in April 2021 we:

Developed and agreed a marketing plan, moved Workshop 2 out of the basement into Gildart Street, set up a new workshop in Gildart Street, created a new volunteer area on the shop floor and created additional sales space by opening up the basement as an additional shop floor.

In all, despite the challenges faced by BBFW a quick response and change in our approach to getting furniture to those who need it most meant that performance was very positive. We exist to end furniture poverty, and we are proud that our teams found creative ways to ensure that we were still able to help those most in need.

Total Number of sales to BBFW customers

2748
227
Not reported
4141
197
101
Liverpool
Oldham
North East
2369
344
58
Sales to BBFW Customer Groups
224
109
Not reported
48
0
1617
168
556
0
295
0
395
55
101
28
0
2500
97
534
45
684
0
Crisis – Liverpool
Crisis – Oldham
Crisis – North East
20% Discount – Liverpool
20% Discount – Oldham
10% Discount – Liverpool
10% Discount – Oldham
LWP – Liverpool
LWP – Oldham
Standard – Liverpool
Standard – Oldham
305
103
58
19
0
1320
149
247
97
424
0
Financial value of crisis referrals
£29,809
£6,885
£19,507
£52,411
£3,364
£12,458
Liverpool
Oldham
North East
£37,021
£10,025
£6,933

Commentary

Retail sales impacted by closure of store/warehouse for sales to public. However, resource was reallocated where possible to ensure furniture was donated instead. Closure of non-essential retail also made way for Free for All events that we previously expected would not be possible in the year.

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Training people

Our Driving Change programme runs across all our businesses, training people who were previously unemployed or in precarious employment to gain the skills, behaviours and qualifications to move on to higher-paid work. The programme is described in more detail on page 42.

Performance against targets 2020–2021

Complete creation of a social value model based using the 10 Essential Items list as the basis of measurement.

5,300 customer sales in Bulky Bob’s Furniture World. Achieved 2369 (4,439 2019-20)

4,705 of Bulky Bob’s Furniture World customers to receive discounts. Achieved 1954 (3755 in 2019- 20)

This year, we didn’t meet our sales targets due to the closure of retail during national lockdown. However, we still found a way to get furniture to those most in need, and met and exceeded our targets in relation to free furniture donations.

Priorities/Targets for 2021-22

2021-22
Items Customers
All BBFW Customers 9065 3130
Retail sales 6764 2843
Crisis Donations 1260 427
Community Events 158 31
LWP Preloved 883 282

452 families in crisis to receive furniture. Achieved 466 (551 in 2019-20)

No Community events planned for 2020-21. Achieved 3 (0 in 2019-20)

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Creating Social Value

Training people out of poverty

Driving Change

Performance against targets 2020–2021

Driving Change is our training and employment programme. It aspires to move people into higher-paid employment when they have finished their FRC Group training. Driving Change recruits both long-term unemployed people and those in vulnerable employment such as zero-hours contracts and low wages. The programme focuses on behaviours and skills and is tailored to each individual so that they gain the experience that will allow them to move on to better paid, more secure roles. We recruit people who already have driving licences and their main training objective is the LGV Class 2 licence.

We only achieved 25% of leavers into jobs this year. This has been severely impacted by Covid-19 and we expect this number to increase as Covid-19 restrictions ease.

Targets for 2020–2021 ViPs

This year, our programme was severely impacted by Covid-19. We were unable to move as many people into jobs as in previous years due to the pandemic, furlough and an inability to liaise with employers. We were also unable to book training due to the closure of training sites and services for the majority of the lockdown period.

Driving Change Programme 2020 – 21

ViPs (Volunteers, Interns, Placements and Students)

ViP is our volunteering programme. Through this scheme, people can work towards their own goals or give to charity by volunteering their time and skills. Volunteering opportunities are available in all parts of FRC Group, however the majority of volunteers work in our Bulky Bob’s workshop or in our store.

Our work with volunteers was another area impacted by the Covid-19 pandemic. In March 2020 we paused our programme and did not reopen fully until March 2021. It was a year where we missed our volunteers greatly and we were overjoyed to see them return. We continue to value the work of volunteers and provide an environment where they can gain new skills and experiences in non-mission critical work. Volunteers will always be an important part of the team at FRC Group and they play a huge role in shaping our culture.

Performance against 2020-21 performance and targets

Recruit 5 cell leaders.

Recruit 10 ViPs.

Set up a ViP Consultation process.

Set up a social media campaign to aid recruitment.

Targets for 2020–2021 ViPs

Apprenticeships

Apprenticeships combine practical training in a job with study. Our apprentices earn a wage, work alongside experienced staff, get time for training and study related to the role. This year we introduced one apprentice in Finance.

Performance against 2020-21 performance and targets

No targets where set for Apprentices in 2021.

Targets for 2020–2021 ViPs

Kickstart

The Government’s new Kickstarter scheme was launched in the year and was a fantastic opportunity for us to create 6-month placements for talented young people, and get Government support to do it! For each young person (aged 16-24) hired, the Government will pay the employees National Minimum Wage for up to 25 hours per week, plus employer National Insurance contributions and employer minimum pension contributions.

We recruited 5 Kickstarters in 2020 – 21

Performance against 2020-21 performance and targets No targets were set for Apprentices in 2021.

Targets for 2020–2021 ViPs

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Creating Social Value

Using our core skills to develop and run successful commercial businesses, using the profits to create social value across FRC Group

Using our skills to develop commercially successful businesses that create social value and using profits to support our social objectives is a key strategy for FRC Group. The main aim of these businesses is to create profit, although social value is created in these businesses through employment of trainees on the Driving Change programme and through the furniture we provide.

Performance against targets for 2020–2021

Buckingham Interiors

Buckingham Interiors had a challenging start to 2020/21 due to the impact of the pandemic as older people living settings where closed to non-essential works. Installations we had scheduled for Q1 and Q2 pre-pandemic where put back to later in the year. Changes to Covid-19 restrictions in the latter part of the year resulted in an increase in Buckingham Interiors activity. We won repeat business from existing customers as well as the introduction of new customers and we ended the year positively with an increase of sales on the previous year.

Retain existing customers. Bring on new customers.

Explore new markets relevant to Buckingham Interiors products and services. Continue to develop our range and offer. Sustainable products.

We adapted and developed our processes to engage with Buckingham Interiors customers using Teams and Zoom to complete scheme tours and consultations. We engaged in online webinars and seminars as well as exhibiting at the virtual CIH Housing 2020 conference as means of networking with customers.

Targets/ Priorities 2021-22

Performance against Targets for 2020-21

Bulky Bob’s for Business

Bulky Bob’s for Business provides collection and recycling services to local businesses, including the collection of unwanted furniture and PCs. Due to the large number of businesses not occupying their office space throughout 2020-2021 due to the Covid-19 pandemic, a decision was taken to cease the collection of paper waste in February 2021. In addition, the Covid-19 pandemic resulted in far fewer PCs being collected and refurbished than was hoped but this is expected to catch up during 2021-22. We sold a total of 158 low cost reuse PCs & laptops to schools and community groups.

Further the REUSE IT business.

Priorities/Targets for 2021-22

As more businesses open following the Covid-19 pandemic, a greater number of PCs is expected to be collected for data wiping and refurbishment and this should lead to hundreds of PCs being made available for sale or donation to schools / colleges / charities and donated to individuals who can’t afford a PC.

Collection and recycling of unwanted furniture is also expected to increase during 2021-22 as more businesses return to their workspace following the Covid-19 pandemic.

We will also continue to work on the introduction of refurbished products into the supply chain.

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PEOPLE

In a year like no other, we were determined to support our staff and our People and Culture Team led the way on this. During the year we:

HEALTH AND SAFETY

At FRC Group we take health and safety extremely seriously and make this clear to all of our staff, trainees, volunteers, customers, suppliers and members of the general public. We have a Health and Safety Committee made up of key representatives from across FRC Group, including satellite sites. The group holds a number of external health and safety accreditations including:

Equality Ethnicity Leadership Board White British 100% 100% White Irish 0% 0% Caribbean/Mixed 0% 0% Other 0% 0% Gender Male 50% 71% Female 50% 29% Disability Yes 0% 0% No 100% 100%

We have two trained health and safety advisers with NEBOSH (National Examination Board in Occupational Safety and Health)

During the period Furniture Resource Centre Limited were re-accredited with ISO9001

We use Litmos, (online training package) for health and safety courses.

37 accidents (compared to 38 in 2019–2020). Six were RIDDOR reportable (period of absence from work exceeding 7 days including weekends.)

A number of accidents related to manual handling injuries which is not unusual given the nature of the main operation. As a result of these accidents, we improved manual handling training for new starter inductions and continued to offer annual refresher training for all operational staff. We also improved our manual handling training with routine reminders for correct manual handling techniques and operational manual handling controls forming part of team.

We have also introduced a ‘Train the Trainer’ approach where team leaders are trained to train team members in manual handling techniques which will allow for more practical manual handling demonstrations. We continued to demonstrate our commitment to health and safety during the COVID-19 pandemic with the introduction of Special Covid-19 health and safety meetings to discuss and review risk assessments in line with government guidelines. Staff were kept updated through an all staff email and group text. We also continued with remote working across the business to prevent the spread of COVID-19. Restrictions have meant that we have had to find more creative ways to meet our health and safety training requirements.

Our targets for next year are to:

Suppliers

FRC Group has a range of trusted suppliers, both local and national in order to provide the wide range of services and stock required. Preference is always given to using suppliers who are proactive in managing social and environmental change and new large suppliers must provide a range of information before being accepted as a supplier. In addition, FRC Group has signed up to the Prompt Payment Code to recognise the importance placed on its suppliers and its policy of always paying suppliers on time, especially small suppliers.

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CARBON FOOTPRINT

We monitor our environmental impact through FRC Group’s Environmental Management System which includes a number of controls. These include the carbon footprint of the vehicle fleet and premises, waste and recycling, and the impacts of the FRC Group supply chain. The generation of electricity from photovoltaic panels at our head office site saved 4.1 tonnes of carbon during 2020-21. Our Bulky Bob’s model also reduces carbon emissions through mattress and furniture reuse.

We base calculation of FRC Group’s carbon footprint on the vehicle fleet’s use of fuel and gas and electricity consumption in its buildings. The Department for Food & Rural Affairs publishes standard carbon conversion factors in its Environmental Reporting Guidelines and we use these to calculate our environmental impacts.

Utilities usage did see a higher increase due to the addition of new sites, but the impact is likely smaller than it may have been as office-based staff worked from home where possible for much of the year. Overall emissions for utilities, including offsite hosting of IT systems, were around 9% lower than 2019-20.

In 2020–21, FRC Group had a carbon footprint of 263 tonnes of CO2 emissions, compared to 341 tonnes of CO2 emissions in 2019–20.

Despite the addition of 3 new sites during the year, we achieved around 23% lower level of emissions in 2020-21 compared to the previous year. This was driven largely by the effect of Covid-19 restrictions on our businesses.

Vehicle mileage was reduced in the year due to vehicles off the road in April & May of 2020, when our bulky household waste collections were paused. This reduced our fleet emissions by around 34% in these months and overall emissions for the year were around 92% of the levels in the previous year.

Total CO2 (Tonnes)
2017-18 230
2018-19 265
2019-20 341
2020-21 263

Our calculations are based on government conversion factors from the Department for Business, Energy & Industrial Strategy.

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STAKEHOLDERS

FRC Group’s Materiality and Stakeholder Engagement Policy, which can be found on our website at www.frcgroup.co.uk explains the relationships between the different stakeholder groups and how the different relationships and levels of engagement are prioritised.

Our End Furniture Poverty campaign works to raise awareness of the issue of Furniture Poverty, carries out research to understand the consequences of Furniture Poverty and explores possible solutions. End Furniture Poverty lobbies for change, and works with partners to help get furniture to those who need it.

This is an overview of how we have engaged with our stakeholders this year:

End Furniture Poverty

• We published our report ‘Social Return on Investment Study into the Provision of Essential Furniture Items’ using data we collected from recipients of furniture over a two-year period. Our research began with interviewing 25 furniture recipients over the phone. The interviews consisted of 10 questions, focused on finding out what had changed for the recipient as a consequence of receiving essential items of furniture. Their responses allowed us to draw up an Outcomes model which was used in the online quantitative survey. The online survey was sent out to a much wider group of LCSS recipients and we received 164 responses. The survey asked them about the outcomes and how the provision of furniture had changed their lives. We shared our findings with Liverpool City Council, it was sent out to the End Furniture Poverty mailing list of 1771 subscribers.

• We published our Furnished Tenancy report interviewing housing professionals from thirteen social landlords and also eight tenants. The findings of this research showed that not only are there only 2% of social housing properties let as furnished compared to 29% in the private rented sector, but also that social housing tenants are currently relying on an inadequate patchwork of support.

This led to our decision to bring forward our planned LWP research, which had originally been due to be carried out after an update of our Essential Items list. The Chartered Institute of Housing had expressed an interested in furnished tenancies in the past but had put their plans on hold due to the pressures of the pandemic, however the publication of our report reignited their interest and they invited us to present a detailed webinar to explain to their members how to create a sustainable furnished tenancy scheme. We continue to have conversations with social landlords who have read our report and are now considering creating furnished tenancy schemes.

• For our LWP research, we sent a survey out, through a Freedom of Information request, to 410 local authorities, (this is every local authority in the UK). This report revealed that 25 local authorities have now closed their LWP schemes leaving one in five people in the UK unable to access crisis support. Previously The Children’s Society have carried out acclaimed research into LWP but since the publication of our report, they have now decided to use our report instead and we are part of a lobbying group due to meet with MPs to campaign for a Government review into LWP policy and budgets.

• For our Everybody Out research, looking at the provisions being made for homeless people during the pandemic and what was happening to them afterwards, we had survey responses from seven organisations, a mix of charities, local authorities and other providers, such as a probation officer. The results from this research made us realise just how hard it is for people living in furniture poverty who do not know which organisations may be able to help them so we decided to create our Finding Furniture Guides.

These guides explain which organisations can help, who is eligible for their help and how to apply. These guides have been shared far and wide and led to the DWP including our contact details on a list in every job centre in the UK so benefits staff can direct people to us for advice.

Marketing

Responsiveness

Our people

Strategic Report Approved by the Board of Directors and signed on its behalf by Secretary A Rowan.

7th December 2021

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Appendix 1: Independent Limited Assurance Report to FRC Group

We have been engaged by the FRC Group to provide independent limited assurance on the selected aspects of the Furniture Resource Centre Limited Integrated Report 2020-21 as included on pages 10-51 (“the Report”) for the year ended 31 March 2021.

Our conclusion

Our independence and quality control

On the basis of our procedures nothing has come to our attention that causes us to conclude that the selected aspects of the information included within the FRC Group’s Integrated Report 2020-21 – Social Value Review 2020/21: Creating Social Value has not been prepared in all material respects in line with the Reporting Criteria. This conclusion is to be read in the context of what we say below.

We have complied with the Institute of Chartered Accountants in England and Wales (‘ICAEW’) Code of Ethics, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

We apply International Standard on Quality Control (UK&I) and accordingly maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. Our work was conducted by an independent and multi-disciplinary team with experience in impact reporting and assurance.

Selected information

The data included within the scope of our assurance report appears in the “FRC Group’s Integrated Report 2020-21.” This is information denoted with the .

Professional standards applied and level of assurance

Understanding reporting and measurement methodologies

The Selected Information needs to be read and understood together with FRC Group’s broader reporting on both Social Value and Financial Impact. The absence of a significant body of established practice on which to draw, and hence to evaluate and measure non-financial information, allows for different, but acceptable, measurement techniques and can affect comparability between entities and over time.

We conducted a limited assurance review in accordance with International Standard on Assurance Engagements 3000 – “Assurance Engagements other than Audits and Reviews of Historical Financial Information” (‘ISAE 3000’) issued by the International Auditing and Assurance Standards Board. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement. It does not include detailed testing of source data nor the operating effectiveness of processes and internal controls.

Our review has also been conducted in line with the principles of the AA1000 Assurance Standard and AA1000 Accountability Principles.

Work done

We are required to plan and perform our work in order

to consider the risk of material misstatement of the Selected Information. In doing so, our procedures consisted primarily of:

a) Interviews with FRC Group Management;

Specifically, for the disclosures on pages 12 and 20-21 our assurance is on the basis / limited to the following:

FRC Group’s responsibilities

The Directors of the FRC Group are responsible for:

Our responsibilities

We are responsible for:

This report has been prepared to assist the FRC Group in reporting its Social Value. We permit this report to be disclosed in the FRC Group’s Integrated Report 2020-21.

The procedures that we have performed are solely to assist you in reporting the Furniture Resource Centre’s social impact. Our report is not to be used for any other purpose and is solely for your information.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the FRC Group, for our work, for this report, or for the opinions we have formed.

Richard Evans

For and on behalf of

Crowe U.K. LLP

17 December 2021

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FINANCIA REV EW

Directors’ Responsibilities Statement

The Directors are responsible for preparing the Strategic Report, Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the charity’s

website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the directors. The directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Small Companies’ Exemption

In preparing this directors’ report, advantage has been taken of the small companies’ exemption.

Auditor

The directors decided to appoint a new auditor for the year ended 31 March 2021 onwards and so Crowe U.K. LLP were appointed as auditor following a tender process.

Statement as to disclosure of information to auditor

The directors 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 (as defined by the Companies Act 2006) of which the auditor is unaware. Each of the directors have confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Approved by the Board of Directors on 7 December 2021 and signed on its behalf by

A Rowan Date Secretary 7 December 2021

Independent Auditor’s Report to members of Furniture Resource Centre Limited

Opinion

We have audited the financial statements of Furniture Resource Centre Limited (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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 required to report that fact. We have nothing to report in this regard.

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Opinions on other matters prescribed

by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required

to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 56, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such 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 charitable company’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 charitable company 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 whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 (UK) 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 these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable

of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were Health & Safety and Waste Carriers Regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, reading minutes of meetings of those charged with governance and sample testing on revenue to supporting information.

Owing to the inherent limitations of an audit, there

is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Vicky Szulist Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor The Lexicon Mount Street Manchester M2 5NT

Date: 17th December 2021

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

CONSOLIDATED AND CHARITY BALANCE SHEETS AT 31 MARCH 2021

Note Total Total Total Funds Funds Total Funds Total Funds Total Funds Notes Group Charity
Unrestricted
Funds		 Restricted
Funds		 31 March
2021		 31 March
2020		 2021 2020 2021 2020
£ £ £ £
£ £ £ £
Fixed assets
Intangible assets 12 7,500 52,500 7,500 52,500
Income and endowments from: Tangible assets 13 540,108 338,062 472,167 242,924
Donations and legacies 4 153,121 71,170 224,291 63,801 Investments 3 - - 1 1
Charitable activities 5 12,850,360 - 12,850,360 12,204,288 547,608 390,562 479,668 295,425
Investments 820 - 820 5,631
Current assets
Other 99,210 - 99,210 38,634 Stock 14 996,342 755,553 992,945 754,764
Debtors 15 3,028,668 2,553,727 3,001,110 2,578,246
Total 13,103,511 71,170 13,174,681 12,312,354 Investments 16 181,793 180,973 181,793 180,973
Cash at bank and in hand 585,237 687,858 514,022 583,602
Expenditure on: 4,792,040 4,178,111 4,689,870 4,097,585
Charitable activities 6 12,800,618 72,875 12,873,493 11,973,860 Creditors:amounts falling
due within oneyear		 17 (1,969,078) (1,981,017) (1,815,037) (1,825,950)
Total resources expended 12,800,618 72,875 12,873,493 11,973,860
Net current assets 2,822,962 2,197,094 2,874,833 2,271,635
Net incoming / (outgoing) resources
before transfers		 302,893 (1,705) 301,188 338,494 Total assets less current
liabilities		 3,370,570 2,587,656 3,354,501 2,567,060
Balances brought forward at 1 April 2,558,867 10,515 2,569,382 2,230,888 Creditors:amounts falling
due after more than oneyear		 17 (500,000) (18,274) (500,000) (18,274)
Net Assets 2,870,570 2,569,382 2,854,501 2,548,786
Balances carried forward at 31 March 2,861,760 8,810 2,870,570 2,569,382
Funds
Unrestricted 2,861,760 2,558,867 2,845,691 2,540,310
Restricted 19 8,810 10,515 8,810 8,476
Total Funds 20 2,870,570 2,569,382 2,854,501 2,548,786

The notes on pages 63 to 94 form part of these financial statements.

The notes on pages 63 to 94 form part of these financial statements.

Exemption has been taken from presenting an unconsolidated parent charity profit and loss account under section 408 of the Companies Act 2006.

The financial statements were approved by the Board of Directors and authorised for issue on 7 December 2021and signed on their behalf by:

N Wilson , Director

Company Registration Number 02296329. A Charity registered in England and Wales (700731).

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FURNITURE RESOURCE CENTRE LIMITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021 3

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Note 2021 2020
£ £
Cash fows from operating activities:
(Reduction in cash) / cash generated from operations 25 (246,453) 518,665
Interest received 820 5,631
Net cash (outfow) / infow from operating activities (245,633) 524,296
Cash fows from investing activities:
(Purchase of) fxed assets (338,322) (272,008)
Sale of fxed assets 428 600
(Purchase of) cash investments (820) (144,805)
Net cash (outfow) from investing activities (338,714) (416,213)
Cash fows from fnancing activities
Net cash infows from borrowing 481,726 230,777
Net cash infow from fnancing activities 481,726 230,777
(Decrease) / Increase in cash and cash equivalents in the year (102,621) 338,860
Cash and cash equivalents at the beginning of the year 687,858 348,998
Cash and cash equivalents at the end of the year 585,237 687,858

The notes on pages 63 to 94 form part of these financial statements.

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1 Accounting policies

a) General Information

Furniture Resource Centre Limited is a private charitable company limited by guarantee, incorporated in England and Wales under the Companies Act 2006. The address of the registered office is shown on the company information page. The nature of the company’s operating and financial activities are outlined in the Directors’ Report.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The trustees confirm that the charity meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

c) Basis of consolidation

The financial statements consolidate the results of the charity, Bulky Bob’s Office and Commercial Waste and Bulky Bob’s 2015, charities for which it is the sole member and also its wholly owned trading subsidiary Bulky Bob’s Limited. The results of these companies are consolidated on a line-by-line basis. A separate Statement of Financial Activities for the charity itself has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

d) Going Concern

The financial position on pages 60 to 94 demonstrates that the group is operating within its available cash funds and has net current assets at the year end. As a result of the Covid-19 pandemic, the trustees reviewed detailed cash flow projections covering a range of scenarios and after careful consideration, were of a view that the charity has sufficient cash balances to continue to trade despite the difficult economic climate. As a contingency, the charity also secured a loan under the Coronavirus Business Interruption Loan Scheme, which was drawn down in December 2020.

After reviewing financial projections for the group and taking account of new contracts recently won, the trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The trustees have concluded that it is appropriate to prepare the accounts on a going concern basis.

e) Incoming resources

Voluntary income and donations are accounted for as received by the group. All other income is accounted for on an accruals basis.

Income from commercial trading activities is recognised as earned (as the related goods and services are provided). Income from charitable activities includes income received under contract (as the related goods and services are provided).

Investment income is recognised on a receivable basis. Income from grants receivable which support people development is credited to the income and expenditure account in the period to which the grants relate.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

f) Resources expended

Resources expended are included in the Statement of Financial Activities on an accruals basis. Expenditure is directly attributable to specific activities and has been included in those cost categories.

Costs of generating funds are those costs incurred in the trading activities of the subsidiary companies that raise funds.

Charitable activities include expenditure associated with the supply of furniture and other household accessories to social landlords, the retailing of reused goods to economically disadvantaged groups, provision of bulky household waste collection services, logistics and other recycling services and the costs of providing training programmes to socially excluded groups. These include both the direct costs and support costs relating to those activities.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. property costs are apportioned on area utilised, ICT costs, staff costs, general office and depreciation are apportioned by income generated

.

g) Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

h) Operating leases

Where the group is lessee, rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are included in ‘resources expended’ on a straight line basis over the term of the lease.

i) Investments

Current asset investments concern cash held on deposit with a maturity date of less than one year from the maturity date. Investments are initially and subsequently measured at the amount of the cash deposit.

j) Tangible fixed assets and depreciation

Tangible fixed assets for use by the group are stated at cost less depreciation subject to impairment review in accordance with FRS 102.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Improvements to leasehold property 10% on cost Plant & machinery 10%-25% on cost Fixtures, fittings and equipment 25% on cost Computer equipment 20%-33% on cost

k) Goodwill

On acquisition of a business, fair values are attributed to the assets, liabilities and contingent liabilities of the acquired business at the date of acquisition. Goodwill arises when the fair value of the consideration given for a business exceeds the fair value of the net assets. Goodwill is capitalised and amortised over its useful economic life. The useful economic life of goodwill is considered to be 2 years.

l) Stocks

Stocks of new and donated goods are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

m) Pension costs

The charity and group operates a defined contribution pension scheme which all employees are eligible to join. The assets of the scheme are held separately from those of the charity in an independently administered fund. Contributions in respect of the company’s Group Personal Pension Plan are included in ‘resources expended’ for the year in which they are payable to the scheme.

n) Funds structure

The group’s funds consist of unrestricted and restricted amounts. The group may use unrestricted amounts at its discretion. Restricted funds represent income contributions which are restricted to a particular purpose, in accordance with the donor’s wishes.

o) Financial Instruments

Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

p) Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Other key sources of estimation uncertainty:

Creditors and provisions are recognised where the group has a present obligation resulting 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 their settlement amount after allowing for any trade discounts due.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

2 Financial activities of the charity

3 Subsidiary companies and other group charities

A summary of the financial activities undertaken by the charity is shown below.

Unrestricted
funds		 Restricted
funds		 2021 Total
Funds		 Unrestricted
funds		 Restricted
funds		 2020 Total
Funds
£ £ £ £ £ £
Incoming Resources 12,217,500 168,280 12,385,780 11,477,081 25,675 11,502,756
Resources Expended (11,912,119) (167,946) (12,080,065) (11,116,870) (34,910) (11,151,780)
Net incoming / (outgoing) resources for the year 305,381 334 305,715 360,211 (9,235) 350,976

Legal Status

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

The financial activities shown in the consolidated financial statements include the results of Bulky Bob’s 2015 and Bulky Bob’s Office and Commercial Waste, charities for which Furniture Resource Centre Limited is the sole member. The results of the charity’s wholly owned trading subsidiary, Bulky Bob’s Limited is also included.

The information and financial data for each company is included below. The registered office of Bulky Bob’s 2015, Bulky Bob’s Office and Commercial Waste and Bulky Bob’s Limited is the same as stated on the company information page of these accounts

(i) Bulky Bob’s 2015

The charity is the sole member of Bulky Bob’s 2015, a company limited by guarantee and registered in England. Bulky Bob’s 2015 is also a registered charity (charity number 1167068) and operates contracts for various councils within the North West for the collection, reuse and recycling of bulky household waste and for the provision of training.

On 1 April 2017, the assets, liabilities and contracts of Bulky Bob’s Limited were transferred to Bulky Bob’s 2015 and Bulky Bob’s Limited ceased trading on that date. At 31 March 2021, the capital and reserves of Bulky Bob’s 2015 were £143,613 (2020: £135,891). The charity made a surplus of £7,722 in the year ended 31 March 2021 (2020: £4,574).

At 31 March 2021, the capital and reserves of Bulky Bob’s Office and Commercial Waste were in deficit by £127,542. The charity made a deficit of £12,250 in the year ended 31 March 2021 (2020: deficit of £17,055).

(iii) Bulky Bob’s Limited (Company number 3759102)

The charity holds 1 £1 ordinary share in Bulky Bob’s Limited, a company registered in England. This holding comprises the whole of the company’s share capital. At 31 March 2021, the capital and reserves of Bulky Bob’s Limited were £1. The company did not trade in the year ended 31 March 2021.

(ii) Bulky Bob’s Office and Commercial Waste

The charity is the sole member of Bulky Bob’s Office and Commercial Waste, a company limited by guarantee and registered in England. Bulky Bob’s Office and Commercial Waste is also a registered charity (charity number 1168088) and provides an office and commercial waste collection service, collecting and recycling waste items.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

3 Subsidiary companies and their activities (continued)

A summary of the results of Bulky Bob’s 2015 for the year is shown below

Unrestricted
funds		 Restricted
funds		 Total
Funds
£ £ £
Incoming Resources 1,302,890 9,435 1,312,325
Resources Expended (1,293,129) (11,474) (1,304,603)
Net incoming resources for the year 9,761 (2,039) 7,722

A summary of the results of Bulky Bob’s Office and Commercial Waste for the year is shown below.

Unrestricted
funds		 Restricted
funds		 Total
Funds
£ £ £
Incoming Resources 281,197 10,000 291,197
Resources Expended (293,447) (10,000) (303,447)
Net incoming resources for the year (12,250) - (12,250)

4 Income from donations and legacies

Unrestricted
Funds		 Restricted
Funds		 Total
2021		 Unrestricted
Funds		 Restricted
Funds		 Total
2020
£ £ £ £ £ £
Sefton at Work - (1,228) (1,228) - 4,874 4,874
Made Smarter Grant - 21,564 21,564 - 3,428 3,428
Charity Shop - 50 50 - 200 200
Kickstart - 5,784 5,784 - - -
Liverpool City Council Covid-19 support - 35,000 35,000 - - -
Wirral Council Covid-19 support - 10,000 10,000 - - -
Coronavirus Job Retention Scheme Grant 153,121 - 153,121 - - -
Knowsley Works - - - - 17,287 17,287
Donations for Bed for Kids Campaign - - - - 150 150
Liverpool City Council - - - - 28,862 28,862
MRWA Community Fund - - - - 8,000 8,000
Joseph Rowntree Foundation - - - - 1,000 1,000
Total donations and legacies 153,121 71,170 224,291 - 63,801 63,801

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

5 Income from Charitable activities

Unrestricted
Funds		 Restricted
Funds		 Total
2021		 Total
2020
£ £ £ £
Provision of furniture / furniture packages 11,759,024 - 11,759,024 10,978,100
Provision of bulky household waste
collection and recycling services		 882,487 - 882,487 833,477
Charity shop sales 104,165 - 104,165 185,645
Provision of other recycling services 104,684 - 104,684 206,866
Other income - - - 200
Total charitable activities 12,850,360 - 12,850,360 12,204,288

6 Expenditure on Charitable activities

Direct Costs Support Total
2021		 Total
2020
£ £ £ £
Provision of furniture / furniture packages 9,577,909 1,205,462 10,783,371 9,998,527
Charity shop sales 277,382 8,457 285,839 309,778
People Development 284,574 83,579 368,153 513,200
Provision of bulky household waste
collection and recycling services		 870,571 77,119 947,690 775,904
Provision of other recycling services 337,530 68,546 406,076 283,399
Other income 82,364 - 82,364 93,052
Total charitable activities expenditure 11,430,330 1,443,163 12,873,493 11,973,860

7 Allocation of support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. Property costs are apportioned on area utilised, ICT costs, staff costs, general office and depreciation costs are apportioned by income generated.

Provision
of Furniture
and furniture
packages		 Charity
Shop
Sales		 People
Develop-
ment		 Provision
of bulky
household
waste
collec-
tion and
recycling
services		 Provision
of other
recycling
services		 2021
Total		 2020
Total
Support Cost £ £ £ £ £ £ £
Property cost 250,737 - 83,579 - - 334,316 355,961
Staff costs 511,653 4,532 - 47,721 52,608 616,514 542,767
Vehicle costs - - - - 5,371 5,371 1,107
ICT costs 95,387 845 - - - 96,232 70,784
Governance 29,111 258 - 2,894 2,231 34,494 26,434
General offce 237,604 2,105 - 26,504 8,336 274,549 345,694
Depreciation 80,970 717 - - - 81,687 88,108
1,205,462 8,457 83,579 77,119 68,546 1,443,163 1,430,855

8 Governance costs

8 Governance costs
2021 2020
£ £
Social Audit 5,000 7,875
Audit and accountancy 24,209 34,994
Directors’ insurance 5,285 4,179
34,494 47,048

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

9 Analysis of staff costs and the cost of key management personnel

9 Analysis of staff costs and the cost of key management personnel (continued)

3 employees had emoluments (excluding pension contributions) of more than £60,000 in the year (2020: 3).

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£|The key management personnel of the charity and group comprise the trustees, Chief Executive Officer,| |Director of Finance and Social, Director of FRC and the Director of People and Culture. The total employee| |Staff costs:| |cost of the key management personnel was £354,756 (2020: £343,811).| |Wages and salaries|3,038,338|2,830,659| |During the year, redundancy costs of £1,544 (2020: £6,000) were paid by the group.| |Social security costs|234,282|221,699|Redundancy costs of £772 were paid by the charity (2020: £nil).| |1| |Pension costs|124,257|99,903| |The average number of employees analysed by function, was:| |3,396,877|3,152,261|2021|2020| |Number|Number| |Provision of furniture and furniture packages|57|51| |The emoluments of higher paid employees fell within the following ranges:| |Training|9|12| |2021|2020|Retail|6|5| |Number|Number|Bulky Bob’s – collection, recycling and reuse of unwanted furniture|22|21| |£60,000 - £70,000|1|2|Bulky Bob’s Office and Commercial Waste|4|4| |£70,001 - £80,000|1|-|Management, Finance, Administration and ICT|11|11| |£100,001 – 110,000|1|1|3|End Furniture Poverty|2|2| |111|106| |7|

----- End of picture text -----

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

10 Trustee Remuneration

12 Intangible Assets

& Related Party Transactions

No trustee received any remuneration during the year ended 31 March 2021 (2020: £nil).

No travel costs were reimbursed to trustees in the year (2020: £nil).

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year (2020: £nil).

11 Net incoming / (outgoing) resources for the year

Group Charity
2021 2020 2021 2020
£ £ £ £
This is stated after charging/(crediting):
Auditors’ remuneration: Audit services 18,000 21,250 12,000 15,250
Auditors’ remuneration:Non-audit services 5,000 21,619 5,000 21,619
Depreciation and amortisation 180,068 164,878 141,420 139,670
Loss on disposal 780 51,438 - 51,438
Operating lease rentals:-
Auditors’ remuneration:Other 805,028 722,097 585,726 558,991
Rents receivable on property sub-lease - 4,000 - 4,000
Group Charity
Goodwill Total Goodwill Total
£ £ £ £
Cost or valuation
At 1 April 2020 97,600 97,600 90,000 90,000
At 31 March 2021 97,600 97,600 90,000 90,000
Amortisation
At 1 April 2020 45,100 45,100 37,500 37,500
Charge for the year 45,000 45,000 45,000 45,000
At 31 March 2021 90,100 90,100 82,500 82,500
Net book value
At 31 March 2021 7,500 7,500 7,500 7,500
At 31 March 2020 52,500 52,500 52,500 52,500

All intangible fixed assets are used for or to support charitable purposes.

Goodwill of £90,000 arose on the acquisition of contracts on 25 June 2019 from a competitor organisation to supply furniture to customers, predominantly in the Greater Manchester region. This goodwill is amortised over a 2 year period.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

13 Tangible fixed assets

13 Tangible fixed assets (continued)

Group Improvements
to leasehold
property		 Plant and
machinery		 Fixtures,
fttings and
equipment		 Computer
equipment		 Assets
Under
Construction		 Total
£ £ £ £ £ £
Cost or valuation
At 1 April 2020 933,193 192,144 226,748 404,050 - 1,756,135
Additions 14,177 122,489 22,391 53,557 125,708 338,322
Disposals - (12,527) (2,337) - - (14,864)
At 31 March 2021 947,370 302,106 246,802 457,607 125,708 2,079,593
Accumulated Depreciation
At 1 April 2020 800,061 115,567 184,852 317,593 - 1,418,073
Charge for the year 24,705 31,401 30,909 48,053 - 135,068
Disposals - (12,114) (1,542) - - (13,656)
At 31 March 2021 824,766 134,854 214,219 365,646 - 1,539,485
Net book value
At 31 March 2021 122,604 167,252 32,583 91,961 125,708 540,108
At 31 March 2020 133,132 76,577 41,896 86,457 - 338,062
Charity Improvements
to leasehold
property		 Plant and
machinery		 Fixtures,
fttings and
equipment		 Computer
equipment		 Assets
Under
Construction		 Total
£ £ £ £ £ £
Cost or valuation
At 1 April 2020 916,095 93,232 208,273 387,819 - 1,605,419
Additions 9,637 126,164 12,066 52,088 125,708 325,663
Disposals - - - - - -
At 31 March 2021 925,732 219,396 220,339 439,907 125,708 1,931,082
Accumulated Depreciation
At 1 April 2020 796,892 76,751 179,341 309,511 - 1,362,495
Charge for the year 22,780 4,039 25,167 44,434 - 96,420
Disposals - - - - - -
At 31 March 2021 819,672 80,790 204,508 353,945 - 1,458,915
Net book value
At 31 March 2021 106,060 138,606 15,831 85,962 125,708 472,167
At 31 March 2020 119,203 16,481 28,932 78,308 - 242,924

All tangible fixed assets are used for or to support charitable purposes.

All tangible fixed assets are used for or to support charitable purposes.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

14 Stock

Group Charity
2021 2020 2021 2020
£ £ £ £
Finished goods 996,342 755,553 992,945 754,764

Stock recognised as an expense in the year for the group was £7,626,843 (2020: £6,984,877) and for the charity was £7,611,725 (2020: £6,984,088).

16 Investments

Group Charity
2021 2020 2021 2020
£ £ £ £
Cash held on deposit 181,793 180,973 181,793 180,973
181,793 180,973 181,793 180,973

The amount shown under cash held on deposit above relates to cash held in fixed term deposits maturing prior to 31 March 2022.

15 Debtors

Group Charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 2,759,941 2,340,582 2,594,558 2,078,745
Prepayments 234,188 189,215 196,878 160,472
Amounts due from subsidiary undertakings - - 175,137 315,149
Other debtors 34,539 23,930 34,537 23,880
3,028,668 2,553,727 3,001,110 2,578,246

The amount due from subsidiary undertaking includes a balance of £175,137 (2020: £157,369) due from Bulky Bob’s Office and Commercial Waste. The balance is due on demand and incurs interest at a rate of 4% per annum, compounded daily. All other amounts due from group undertakings are interest free and due on demand.

The impairment loss recognised in the SOFA for the year in respect of bad and doubtful trade debtors was £nil (2020: £nil).

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

17 Creditors: amounts falling due within one year

18 Deferred Income

Deferred income comprises income received in advance of delivery of service.

Group Charity
2021 2020 2021 2020
£ £ £ £
Trade creditors 1,165,179 1,072,731 1,086,196 1,032,138
Amount owed to subsidiary undertaking - - 19,152 -
Other taxation and social security 399,786 206,311 363,835 173,045
Other creditors 66,668 127,058 63,154 123,571
CAF Venturesome loan - 212,503 - 212,503
Accruals and deferred income 337,445 362,414 282,700 284,693
1,969,078 1,981,017 1,815,037 1,825,950
Group
Charity
Group Charity
2021
2020
2021		 2020
£ £
£
£
£		 £
Trade creditors
1,165,179
1,072,731
1,086,196		 1,032,138 Balance at 1 April 2020 51,516 -
Amount owed to subsidiary undertaking
-
-
19,152		 - Amount released to incoming resources (496,513) -
Other taxation and social security
399,786
206,311
363,835		 173,045 Amounts deferred in the year 457,303 -
Other creditors
66,668
127,058
63,154		 123,571
CAF Venturesome loan
-
212,503
-		 212,503 Balance at 31 March 2021 12,306 -
Accruals and deferred income
337,445
362,414
282,700		 284,693
Loan due after more than one year.
1,969,078
1,981,017
1,815,037		 1,825,950 7
CBILS loan
500,000
-
500,000		 -
Amount owed to subsidiary undertaking
-
18,274
-		 18,274
The CAF Venturesome loan relates to a loan of £400,000 received from CAF Venturesome
on 24 May 2019 in order to fund the acquisition of contracts from a competitor
organisation to supply furniture to social landlords in the Greater Manchester region.
The loan was repaid in full on 26 August 2020.
The CBILS loan relates to a loan of £500,000 received on 16 December 2020 from the
Government’s Coronavirus Business Interruption Loan Scheme. Interest is payable on the
loan at a rate of 1.88% above base rate with repayments commencing January 2022 and
the fnal repayment being due December 2026. The loan is secured by a fxed and foating
charge over the assets of the charity.
CAF Venturesome loan
500,000
18,274
500,000
18,274		 6 8 6
2

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

19 Restricted Funds

Group Balance at
1 April 2020		 Movement
in re		 sources Balance at
31 March 2021
Incoming Outgoing
£ £ £ £
Community Sustainable Energy Programme (i) 2,256 - (2,256) -
Low Carbon Buildings Programme (i) 4,385 - (4,385) -
Foundation (i) 1,835 - (1,835) -
Kickstart (iii) - 5,784 (5,784) -
Liverpool City Council Covid-19 funding (iv) - 35,000 (35,000) -
Wirral Council Covid-19 funding (iv) - 10,000 (10,000) -
Sefton at Work (iii) - (1,228) 1,228 -
Made Smarter Grant (ii) 2,039 21,564 (14,793) 8,810
Charity shop donation (v) - 50 (50) -
10,515 71,170 (72,875) 8,810

19 Restricted Funds (continued)

Charity Balance at
1 April 2020		 Movement
in re		 sources Balance at
31 March 2021
Incoming Outgoing
£ £ £ £
Community Sustainable Energy Programme (i) 2,256 - (2,256) -
Low Carbon Buildings Programme (i) 4,385 - (4,385) -
Foundation (i) 1,835 - (1,835) -
Kickstart (iii) - 3,806 (3,806) -
Liverpool City Council Covid-19 funding (iv) - 35,000 (35,000) -
Made Smarter Grant (ii) - 12,879 (4,069) 8,810
Charity shop donation (v) - 50 (50) -
8,476 51,735 (51,401) 8,810

Those funds with balances at 31 March 2021 or 31 March 2020

represent funds received and used for the following purposes.

Those funds which were received and defrayed in the year were received for the following purposes.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

19 Restricted Funds (continued)

Movement in restricted funds for the year ended 31 March 2020 are shown below.

Group Balance at
1 April 2019		 Movement
in re		 sources Balance at
31 March
2020
Incoming Outgoing
£ £ £ £
Community Sustainable Energy Programme (i) 4,701 - (2,445) 2,256
Low Carbon Buildings Programme (i) 9,219 - (4,834) 4,385
Foundation (i) 3,791 - (1,956) 1,835
Liverpool City Council – WEEE Local Project
Fund		 (iv) 11,454 - (11,454) -
Sefton at Work (iii) - 4,874 (4,874) -
Knowsley Works (iii) - 17,287 (17,287) -
Liverpool City Council (iii) - 28,862 (28,862) -
Fundraising – Beds for Kids Campaign (v) - 150 (150) -
British Council (vi) - 1,000 (1,000) -
Made Smarter Grant (ii) - 3,428 (1,389) 2,039
MRWA Community Fund (vii) - 8,000 (8,000) -
Charity shop donation (viii) - 200 (200) -
29,165 63,801 (82,451) 10,515

19 Restricted Funds (continued)

Movement in restricted funds for the year ended 31 March 2020 are shown below.

Charity Balance at
1 April 2019		 Movement Balance at
31 March 2020
Incoming Outgoing
£ £ £ £
Community Sustainable Energy Programme (i) 4,701 - (2,445) 2,256
Low Carbon Buildings Programme (i) 9,219 - (4,834) 4,385
Foundation (i) 3,791 - (1,956) 1,835
Sefton at Work (iii) - 3,870 (3,870) -
Knowsley Works (iii) - 6,552 (6,552) -
Liverpool City Council (iii) - 13,903 (13,903) -
Fundraising – Beds for Kids Campaign (v) - 150 (150) -
British Council (vi) - 1,000 (1,000) -
Charity shop donation (viii) - 200 (200) -
17,711 25,675 (34,910) 8,476

Those funds with balances at 31 March 2020 or 31 March 2019

Those funds which were received and defrayed in the year were received for the following purposes.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

20 Analysis of net assets between funds

Group Fixed
assets		 Net current
assets		 Creditors
falling due
after more
than one year		 2021
Total		 Fixed assets
(Restated)		 Net current
assets
(Restated)		 Creditors
falling
due after
more
than one
year		 2020
Total
£ £ £ £ £ £ £ £
Restricted funds 8,810 - - 8.810 10,515 - - 10,515
Unrestricted funds 538,798 2,822,962 (500,000) 2,861,760 380,047 2,197,094 (18,274) 2,558,867
Net assets 547,608 2,822,962 (500,000) 2,870,570 390,562 2,197,094 (18,274) 2,569,382

The amount of £8,810 (2020: £10,515) included under Restricted Funds represents the following:

2021 Total 2020 Total
£ £
Net book value of solar panels, which was funded by grants - 8,476
Mattress cleaning machinery, which was part-funded by grants 8,810 2,039
Total 8,810 10,515

20 Analysis of net assets between funds (continued)

Charity Fixed
assets		 Net current
assets		 Creditors
falling due
after more
than one year		 2021
Total		 Fixed
assets		 Net current
assets
(Restated)		 Creditors
falling
due after
more
than one
year		 2020
Total
£
8,476
2,540,310
£ £ £ £ £ £ £
Restricted funds 8,810 - - 8.810 8,476 - -
Unrestricted funds 470,858 2,874,833 (500,000) 2,845,691 286,949 2,271,635 (18,274)
Net assets 479,668 2,874,833 (500,000) 2,854,501 295,425 2,271,635 (18,274) 2,548,786

The amount of £8,810 (2020: £8,476) included under Restricted Funds represents the following:

2021 Total 2020 Total
£ £
Net book value of solar panels, which was funded by grants - 8,476
Mattress cleaning machinery 8,810 -
Total 8,810 8,476

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

21 Commitments

Operating leases commitments

At 31 March 2021, the commitments under non-cancellable operating leases are as follows:

Land &
buildings		 Other 2021
Total		 2020
Total
£ £ £ £
Charity
Expiry within:
Under one year 271,703 85,200 356,903 341,979
Two to fve years 373,199 38,111 411,310 468,252
Over fve years - - - -
644,902 123,311 768,213 810,231
Group
Expiry within:
Under one year 310,868 137,375 448,243 394,932
Two to fve years 393,199 45,120 438,319 520,975
Over fve years - - - -
704,067 182,495 886,562 915,907

22 Pension commitments

The charity and group operates a defined contribution pension scheme which all employees are eligible to join. The assets of the scheme are held separately from those of the charity and group in an independently administered fund. Contributions are paid based upon the recommendations of a qualified actuary. The annual contributions under this scheme were as follows:

2021 2020
Group Charity Group Charity
£ £ £ £
Pension contributions 124,257 103,536 99,903 86,433

Contributions amounting to £21,437 (2020: £20,615) were payable at the year end and are included in group creditors. Contributions amounting to £18,243 (2020: £17,629) were payable at the year end and are included in charity creditors.

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

23 Related Parties

Group Undertakings

In the year ended 31 March 2021, the following transactions took place between Furniture Resource Centre Limited and Bulky Bob’s 2015, a charity for which Furniture Resource Centre Limited is the sole member.

Transactions from Furniture Resource Centre Limited to Bulky Bob’s 2015:

Transactions from Bulky Bob’s 2015 to Furniture Resource Centre Limited:

The amount owed by Furniture Resource Centre Limited to Bulky Bob’s 2015 at 31 March 2021 was £19,152. At 31 March 2020, Bulky Bob’s 2015 owed Furniture Resource Centre Limited £157,780.

In the year ended 31 March 2020, the following transactions took place between Furniture Resource Centre Limited and Bulky Bob’s Office and Commercial Waste, a charity for which Furniture Resource Centre Limited is the sole member.

Transactions from Furniture Resource Centre Limited to Bulky Bob’s Office and Commercial Waste:

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FURNITURE RESOURCE CENTRE LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

23 Related Parties (continued)

24 Capital Commitments

Group Undertakings

There were no capital commitments at 31 March 2021 (2020: £nil).

Transactions from Bulky Bob’s Office and Commercial Waste to Furniture Resource Centre Limited:

25 Reconciliation of net incoming resources to net cash flow from operating activities

The amount owed by Bulky Bob’s Office and Commercial Waste

to Furniture Resource Centre Limited at 31 March 2021 was £175,137 (2020: £157,369).

In the year ended 31 March 2021, the following transactions took place between Bulky Bob’s 2015 and Bulky Bob’s Office and Commercial Waste. Both companies are charities for which Furniture Resource Centre Limited is the sole member.

Transactions from Bulky Bob’s 2015 to Bulky Bob’s Office and Commercial Waste:

Transactions from Bulky Bob’s Office and Commercial Waste to Bulky Bob’s 2015:

Group
2021 2020
£ £
Net incoming resources for the year 301,188 338,494
Depreciation and amortisation 180,068 164,878
Loss on disposal of assets 780 51,438
Financial income (820) (5,631)
(Increase) in stock (240,789) (317,892)
(Increase) in debtors (474,941) (32,639)
(Decrease) / increase in creditors (11,939) 320,017
(Reduction in cash) / cash generated from operations (246,453) 518,665

The amount owed by Bulky Bob’s Office and Commercial Waste to Bulky Bob’s 2015 was £3,638 (2020: £6,379).

26 Net Debt Reconciliation

There were no transactions between Bulky Bob’s Limited and Furniture Resource Centre Limited, Bulky Bob’s 2015 and Bulky Bob’s Office and Commercial Waste in the years ended 31 March 2021 and 31 March 2020. Bulky Bob’s Limited is a wholly owned trading subsidiary of Furniture Resource Centre Limited.

During the year, sales of £15,989 (2020: £nil) were made to Gentoo Group Limited,

an organisation whose Chief Executive Officer and director is also a trustee of the charity.

1 April 2020 Cash Flows 31 March 2021
£ £ £
Cash at bank and in hand 687,858 (102,621) 585,237
Bank Loans (230,777) (269,223) (500,000)
Net Debt 457,081 (371,844) 85,237

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

27 Post Balance Sheet Events

There were no post balance sheet events.

28 Ultimate Controlling Party

Furniture Resource Centre Limited has no controlling party.

29 Comparative SOFA Information

Total Unrestricted
Funds		 Total
Restricted Funds		 Total Funds
31 March 2020
£ £ £
Income and endowments from:
Donations and legacies - 63,801 63,801
Charitable activities 12,204,288 - 12,204,288
Other trading activities - - -
Investments 5,631 - 5,631
Other 38,634 - 38,634
Total 12,248,553 63,801 12,312,354
Expenditure on:
Raising funds - - -
Charitable activities 11,891,409 82,491 11,973,860
Total resources expended 11,891,409 82,491 11,973,860
Net resources before transfers 357,144 (18,650) 338,494
Taxation – UK corporation tax - - -
Net incoming / (outgoing) resources 357,144 (18,650) 338,494
Balances brought forward at 1 April 2,201,723 29,165 2,230,888
Balances carried forward at 31 March 2,558,867 10,515 2,569,382

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12-14 Atlantic Way, Brunswick Dock, Liverpool, L3 4BE www.frcgroup.co.uk | info@frcgroup.co.uk | 0151 702 0550 Registered in England 2296329 | Charity No: 700731