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2023-03-31-accounts

Furniture Resource Centre Limited

Annual report 2022 - 2023

Registered Number 02296329 Charity Number 700731

Furniture Resource Centre Limited

Contents

Contents

Furniture Resource Centre Limited

Company information

Company Number 2296329 (England and Wales)
Charity Number 700731
Directors
E Bichard
J Hines
J Vernon
N Spruyt
Secretary C Williamson
Chief Executive S Doran
Registered office Atlantic Way
Brunswick Business Park
Liverpool
L3 4BE
Bankers NatWest Bank
2-8 Church Street
Liverpool
L1 3BG
Auditors Crowe UK LLP
The Lexicon
Mount Street
Manchester
M2 5NT
Solicitors Brabners
Horton House
Exchange Flags
Liverpool
L2 3YL

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

The directors, who are also the trustees of the charity, present their annual report and financial statements for the year ended 31 March 2023.

GLOSSARY

Our mission

To reduce and ultimately eradicate furniture poverty.

Our shops:

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:

Bulky Bob’s Furniture World

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

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.

Our values:

Our principal activities:

Furniture Resource Centre Limited (“the charity”) 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.

Buckingham Interiors

Provides interior design and specialist contract furniture to sheltered housing schemes across the UK.

Our programmes:

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 For Business

Offers business collection and reuse services, including accommodation clearances and removals, mattress recycling, mattress 'UltraClean' cleaning, lT equipment collection and refurbished computer sales.

Driving Change

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

ViP (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.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

This report looks at the financial year of April 2022 - March 2023, a year that we continue to go from strength to strength with our mission of ending furniture poverty. For several years, FRC has enjoyed success in many ways including sales growth of 165% since 2017, 9 years of profitable trading, successful acquisition of contracts, generation of high levels of social value and geographical growth. This year was no different. Our FRC Group team, as always, were brave, creative, passionate and professional and continued to deliver a fantastic service. It was another successful year which is a result of the brilliant and dedicated team we have at FRC Group.

We express our gratitude to our amazing team of staff, trainees and volunteers, who daily live and breathe our values. This extraordinary team work hard together, achieving great things on the road to our goal to end furniture poverty.

We offer our heartfelt thanks to all the people who have played a part in producing this report: all those who make FRC Group a great place to work. We would also like to thank Crowe UK, who assured the report. Their statement is on pages 17 – 19.

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:

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, Buckingham Interiors, Bulky Bob's, Bulky Bob’s Furniture World, Bulky Bob’s for Business and Reuse IT.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

Strategic Report

The sections below constitute the Strategic Report for the purposes of the Companies Act 2006:

Overview of 2022 - 2023

Once again, the level of challenge faced in 2022-2023 was extraordinary as was the response from each and every staff member at FRC Group. As last year, we continued to rebuild our workforce after the well publicised ‘Great Resignation’ as a consequence of the COVID-19 pandemic and made great progress recruiting into key roles. However, in 2022-2023, as with all organisations, we felt the impact of inflationary price increases within some areas of our spend. Through our extremely hardworking Procurement Team, maintaining the excellent relationships we have with our suppliers, we have been able to manage these external financial challenges to mitigate the impact to our margins.

Despite these challenges we saw continued growth in our turnover as we exceeded our budget for the year and delivered a positive surplus position. We achieved this position due to the dedication of our people who we applaud for not only their commitment and professionalism but also their sheer stamina! Our staff fully understand that every delivery they make is moving people out of furniture poverty and that is what drives them to give their best every single day.

We continued to raise awareness of furniture poverty, educating people about the potential solutions and, ultimately working towards ensuring that everyone has access to the essential furniture and goods they need to lead a secure life focusing on three broad fronts of public sector support for people in poverty, housing associations and furniture reuse.

We wrote two major research reports this year, Resetting Crisis Support, which examined Local Welfare Assistance in 2021/2022, and The Extent of Furniture Poverty, which revealed for the first time how many people are living without essential furniture items. These are hugely important pieces of work as they provide the evidence base on which decisions can be made and lobbying and campaigning can be based to support our mission.

Our second report, The Extent of Furniture Poverty, was published in early May 2023 which surveyed over 5,500 people across the UK to provide statistically significant data to represent the impact that furniture poverty has on the population.

This year we published our Blueprint for Furniture Provision in Social Housing, a guide for social landlords to help them to create furniture schemes. This is a key campaigning tool, allowing us to support landlords, overcome their reluctance to introduce furnished tenancies, and give them all the information they need to prepare business cases.

These are just a few of the End Furniture Poverty activities and campaigns within the year 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 continuing economic downturn and the long term 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.

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. A number of councils ceased their local welfare programme, and national per capita spend reduced from £1.30 to £0.96. As a result, the demand for more costeffective 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.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

Financial review

Financial Performance

2022-23 saw a continuation of the growth experienced in recent years with total group income increasing for the fifth consecutive year and up 22% on 2021-22 to £19.09m. Expenditure increased 26% compared to 2021-22 to give total expenditure of £18.89m, leaving a group net surplus of £195,868 a decrease of 30% compared to the 2021-22 surplus of £624,900. The financial position this year also includes a provision for bad debt of £195,000.

2022-23 has been FRC’s most successful sales year to date. We exceeded budget by 11% and exceeded 2021-22 sales by 22%. We retained 5 existing customer contracts and were successful in securing another 5 new customer contracts across all business areas.

In 2022 Liverpool City Council made the decision to take the Bulky Household Waste Contract in house. This resulted in our contract ending in November 22. This had a devastating impact on our store, as we could no longer access the volume of furniture we needed to keep the shop open and sadly we had to close our doors. We continue to run the service directly, using our website for customers to order pre-loved furniture. Whilst we are aware of the financial challenges of delivering this service directly, the social value created is significant. For that reason, we agreed we should continue with providing the service with financial support from the wider group activities.

Looking ahead the demand for the group’s services has never been so high. Despite the many challenges faced by the group during this year, including inflationary price increases and a high reliance on agency staff, these have created difficult trading conditions that contributed to a lower surplus than the prior year, however we navigated these challenges successfully to still produce an overall strong financial performance within the year with a positive net surplus.

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

During 2022-23, grants and donations were received from Steven Morgan Foundation and Duchy of Lancaster, to support a new charity initiative ‘Time for Bed’ to be launched in financial year 2023-24, alongside a donation from Fusion 21, covering the cost of researching and producing End of Furniture Poverty reports.

Reserves Policy

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 of indirect support costs plus sufficient cash for future plans, which amounts to at least £4,000,000. 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.

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 2023, consolidated free reserves of £3,158,765 were held (calculated as unrestricted reserves not held in fixed assets), which is £841,235 short of the required consolidated total of £4,000,000. In order to increase the amount of free reserves held, the trustees are looking at ways of improving the profitability of the charity and group.

As at 31 March 2023, the group holds restricted reserves of £12,500 (2022: £nil) and total reserves of £3,691,338 (2022 - £3,495,470).

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

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.

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 in 2024 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.

The proposed move into a new site in Speke is hugely exciting and is proving to be a great morale boost for staff who, when they visit the site, can envisage the massive difference this will make to day to day operations and our ability to make an even greater difference for families in furniture poverty.

Going Concern

The Group has experienced significant growth over recent years and this growth is expected to continue over at least the short to medium term. Future financial forecasts show the continued generation of surpluses each year in the range of £0.3m - £0.5m depending on the level of organic growth achieved and the extent to which supplier price increases are able to be passed on to customers in a timely manner. In order to generate these surpluses, the following principles will be adopted:

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

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 new furniture
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 and
ongoing economic challenges
e.g. supplier price increases
higher than anticipated or
shortages of certain stock
items		 •
Dual sourcing of key stock items
•
Building up supplies of various stock lines to ensure continuity of supply in
the event of shortages
•
Purchasing large volumes of key stock lines if they become available at a
favourable price
Reduction in spend by
Councils due to the
challenging financials, e.g
Birmingham declaring
themselves bankrupt		 •
Effective credit control to ensure customers pay within terms
•
Liaise with key contacts in Councils that have declared themselves bankrupt
to understand impact of this on our spend
•
New rental service offering that would be more cost effective with lower
financial risk to customers
Availability of pre-loved
furniture decreases through
contract changes or loss\of
contracts that provide pre-
Ioved furniture		 •
Identification of alternative sources of pre-loved furniture
•
Continued development of innovative ideas to refurbish pre-loved furniture
e.g. mattress cleaning machine
•
Work with Local Authority customers to develop services that utilise pre-
loved furniture to address furniture poverty

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.

Key Performance Indicators

The group utilise several key performance indicators to enable a consistent method of analysing performance, both financially and from a social value impact perspective. The key financial performance indicators utilised are as follows:

An analysis of certain key performance indicators is included in the overview and financial performance section of this report.

In terms of social value performance indicators, this year we:

A separate impact report sets out further information on our impact in FY22-23.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

Structure, Governance and Management

Strategic Decision

Making Meeting Our Objectives

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

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 12. 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. 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.

The directors who served during the year were:

E Bichard J Vernon J Hines N Spruyt (appointed 31 May 2023) L Dixon (resigned 24 May 2022) N Wilson (resigned 7 December 2022) A Rowan (resigned 31 May 2023) J Nichols (resigned 27 July 2023) E Leach (resigned 19 November 2023)

Statement of Public Benefit

FRC Group ensures that its aims and objectives are achieved through a variety of ways.

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.

Governing Document

Furniture Resource Centre Limited is a charitable company limited by guarantee and does not have any shares 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.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

FRC Group Company Structure

The Furniture Resource Group is headed by Furniture Resource Centre Limited, a company limited by guarantee and also a registered charity.

Furniture Resource Centre has two subsidiaries, both charitable companies limited by guarantee. Furniture Resource Centre is the only member of each subsidiary and is therefore deemed to have control.

The subsidiaries are:

Related Parties

Bulky Bob's is a charity with Furniture Resource Centre Limited as its sole member. Bulky Bob’s provides services, mainly to Local Authorities, for the collection and recycling of bulky household waste. Bulky Bob’s 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 For Business is a charity which has Furniture Resource Centre Limited as its sole member. This charity provides an office and commercial waste collection service and provides training and development opportunities to formerly long-term unemployed people or people on relatively low income.

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 can clean mattresses that may otherwise have been broken down for recycling before they're either sold in our Bulky Bob’s Furniture World store or donated to people who need them.

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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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

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 and external review. The following is a summary of those areas of compliance against the Code along with areas for improvement.

• Organisational Purpose

A 3 year impact strategy has been developed by the Senior Leadership Team, that will be approved by the Board of Trustees in December 2023.

• Leadership

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. 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.

• Integrity

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

A Scheme of Delegation has been agreed between the board, committees and senior staff, which was last reviewed in 2021. NKey policies and procedures are 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.

• 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 sixth 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.

• 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 currently do not have any specific diversity objectives but this is to be considered by the board as part of understanding the skills and expertise required from the board that aligns to the proposed 3 year Impact Strategy

• Openness and Accountability

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 an external consultant to provide benchmark data showing the salaries of similar roles regionally.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

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.

People

In 2022 – 23 we worked really hard to build on the success from the previous year in ensuring that we are a great employer, to help us to recruit and retain the best people. We were reassessed using the accreditation process for Investors in People in an effort to make FRC Group not only a great place to work but a company whereby our employees can learn, develop and be successful within their roles. There are a series of standards that as a business we need to work towards to allow us to ’pass' and as a result gain accreditation.

In 2022-23 the standards FRC Group have met are:

The re-assessment clearly revealed a number of identifiable improvements in the level of staff engagement, the IIP online survey and with the re-assessed indicators. FRC have worked hard to develop new initiatives and the assessment shows that the FRC do many things well.

Of particular note:

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

Health, Safety and Wellbeing

At FRC Group we take health, safety and wellbeing extremely seriously and make this clear to all of our staff, trainees, volunteers, customers, suppliers and members of the general public.

We have an established Health, Safety and Wellbeing Committee made up of key representatives from across FRC Group, including satellite sites and a newly appointed Health and Safety Advisor to manage and prompt overall safety on sites.

The group holds a number of external health and safety accreditations including:

As a result, incident, accident and near miss reporting doubled in 2023

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 secured a new external training provider for practical manual handling training which now forms part of the induction process and is supported by continuous observational audits and Toolbox Talks to ensure safe systems of work are embedded, focusing on a proactive safety culture.

We continue to offer annual refresher training for all operational staff, routine reminders for correct manual handling

techniques and in other operational areas as required.

Our targets for next year are to:

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2023

Directors’ Responsibilities Statement

The Directors are responsible for preparing the Strategic Report, the Directors’ 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 t h e 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.

Qualifying indemnity provisions

There was qualifying indemnity insurance in force for Directors during the financial year and up to the date of signing of these financial statements.

Auditor

The auditor, Crowe U.K. LLP, will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006. Crowe U.K. LLP has indicated its willingness to remain in office.

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 20[th] December 2023 and signed on its behalf by

C Williamson Secretary

Date: 20[th] December 2023

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Furniture Resource Centre Limited

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 2023 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charity 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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Furniture Resource Centre Limited

Independent auditor's report to members of Furniture Resource Centre Limited (continued)

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 16, 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 noncompliance 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.

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Furniture Resource Centre Limited

Independent auditor's report to members of Furniture Resource Centre Limited (continued)

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 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 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.

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.

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: 21st December 2023

19

Furniture Resource Centre Limited

Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31 March 2023

Note
Income and endowments from:
Donations and legacies
4
Charitable activities:
5
Investments
Other
Total
Expenditure on:
Charitable activities
6
Total resources expended
Net incoming resources before
transfers
Balances brought forward at
1 April
Balances carried forward at
31 March		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
-
37,500
37,500
89,009
18,980,306
-
18,980,306
15,496,153
446
-
446
686
67,697
-
67,697
30,915
19,048,449
37,500
19,085,949
15,616,763
18,865,081
25,000
18,890,081
14,991,863
18,865,081
25,000
18,890,081
14,991,863
183,368
12,500
195,868
624,900
3,495,470
-
3,495,470
2,870,570
3,678,838
12,500
3,691,338
3,495,470

The notes on pages 23 to 42 form part of these financial statements.

20

Furniture Resource Centre Limited

Consolidated and Charity Balance Sheets as at 31 March 2023

Company Registration Number 00296329 Charity Registration Number 700731

Note
Fixed assets
Intangible assets
12
Tangible assets
13
Investments
3
Current assets
Stock
14
Debtors
15
Investments
16
Cash at bank and in hand
Creditors: amounts falling due
within one year
17
Net current assets
Total assets less current
liabilities
Creditors: amounts falling due
after more than one year
17
Net assets
Funds
Unrestricted
19
Restricted
19
Total funds
20		 Group
2023
£
-
520,073
-
520,073
1,202,650
3,806,451
182,925
487,763
5,679,789
(2,289,774)
3,390,015
3,910,088
(218,750)
3,691,338
3,678,838
12,500
3,691,338		 Group
2022
£
-
464,271
-
464,271
1,190,923
3,575,531
182,479
975,100
5,924,033
(2,549,084)
3,374,949
3,839,220
(343,750)
3,495,470
3,495,470
-
3,495,470		 Charity
2023
£
-
492,621
-
492,621
1,198,483
3,788,813
182,925
420,938
5,591,159
(2,201,387)
3,389,772
3,882,393
(218,750)
3,663,643
3,651,142
12,500
3,663,643		 Charity
2022
£
-
418,255
-
418,255
1,187,291
3,433,494
182,479
937,528
5,740,792
(2,347,984)
3,392,808
3,811,063
(343,750)
3,467,313
3,467,313
-
3,467,313

Exemption has been taken from presenting an unconsolidated parent charity profit and loss account under section 408 of the Companies Act 2006. The Charity’s surplus for the year was £196,330 (2022 - £612,812).

The financial statements were approved by the Board of Directors and authorised for issue on 20[th] December 2023 and signed on their behalf by

N Spruyt

Director

The notes on pages 23 to 42 form part of these financial statements.

21

Furniture Resource Centre Limited

Consolidated Cash Flow Statement for the year ended 31 March 2023

Note
Cash flows from operating activities:
Cash generated from operations
25
Interest received
Net cash inflow from operating activities
Cash flows from investing activities:
(Purchase of) fixed assets
Sale of fixed assets
(Purchase of) cash investments
Net cash (outflow) from investing activities
Cash flows from financing activities
Loan movement
Loan interest paid
Repayment of finance lease
Hire purchase interest paid
Net cash (outflow) from borrowing
Net cash (outflow) from financing activities
(Decrease)/increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
(160,216)
-
(160,216)
(182,504)
-
-
(182,504)
(125,000)
(17,475)
(1,900)
(242)
-
(144,617)
(487,337)
975,100
487,763		 2022
£
503,995
686
504,681
(87,082)
4,200
(686)
(83,568)
-
-
-
-
(31,250)
(31,250)
389,863
585,237
975,100

The notes on pages 23 to 42 form part of these financial statements.

22

Furniture Resource Centre Limited

Notes to the Accounts for the year ended 31 March 2023

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 and the Charities Act 2011. 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 Annual report.

b) Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice: “Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland” (The Charites SORP 2[nd] Edition), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006, and the Charities Act 2011.

Accounts are prepared in pounds sterling and rounded to the nearest pound.

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 and Bulky Bob's for Business, charities for which it is the sole member. The results of these companies are consolidated on a line-byline 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 Group has experienced significant growth over recent years and this growth is expected to continue over at least the short to medium term. Future financial forecasts show the continued generation of surpluses each year in the range of £0.3m - £0.5m depending on the level of organic growth achieved and the extent to which supplier price increases are able to be passed on to customers in a timely manner. In order to generate these surpluses, the following principles will be adopted:

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.

23

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

1 Accounting policies (continued)

e) Incoming resources

Voluntary income and donations are accounted for when there is entitlement, probability of receipt, and the amount can be measured with sufficient reliability, unless the donor has specified that the donation or grant relates to a future period or certain pre-conditions must be fulfilled before use.

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.

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.

Interest charges are included within ‘general office costs’ within support costs.

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.

24

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

1 Accounting policies (continued)

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. The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

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

Improvements to leasehold property - 10% on cost Plant and 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) Fund’s structure

The group’s funds consist of unrestricted and restricted amounts. The charity 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.

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.

25

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

1 Accounting policies (continued)

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:

2 Financial activities of the charity

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

Unrestricted
funds
£
Incoming resources
18,438,428
Resources expended
(18,021,221)
Net incoming
resources for year
417,207		 Restricted
funds
£
37,500
(25,000)
12,500		 Total
Unrestricted
2023
funds
£
£
18,475,928
14,712,870
(18,046,221)
(14,091,248)
429,707
621,622		 Restricted
funds
£
40,908
(49,718)
(8,810)		 Total
2022
£
14,753,778
(14,140,966)
612,812

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.

3 Subsidiary companies and other group charities

The financial activities shown in the consolidated financial statements include the results of Bulky Bob’s and Bulky Bob's For Business, charities for which Furniture Resource Centre Limited is the sole member.

‘The information and financial data for each company is included below. The registered office of Bulky Bob's and Bulky Bob’s For Business is the same as stated on the company information page of these accounts.

(i) Bulky Bob's

The charity is the sole member of Bulky Bob’s (company number 09948123 and charity number 1167068), a charitable company limited by guarantee and registered in England. Bulky Bob’s 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.

26

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

3 Subsidiary companies and other group charities (continued)

(ii) Bulky Bob’s For Business

The charity is the sole member of Bulky Bob’s For Business (company number 09735094 and charity number 1168088), a charitable company limited by guarantee and registered in England. Bulky Bob's For Business provides a business waste collection service including the collection, data wiping and reuse of PCs.

2023
U nrestricted
Restricted
Total
Unrestricted
Restricted
funds
funds
funds
funds
funds
£
£
£
£
£
Incoming
resources
1,057,232
-
1,057,232
1,181,091
40,402
Resources
expended
(1,059,637)
-
(1,052,365)
(1,170,796)
(40,402)
Net incoming
resources for the
year
(2,405)
-
(2,405)
10,295
-
Reserves at 31
March
151,503
-
151,503
153,908
-
)
A summary of the results of Bulky Bob's For Business for the year is shown below.
2023
U nrestricted
Restricted
Total
Unrestricted
Restricted
funds
funds
funds
funds
funds
£
£
£
£
£
Incoming
resources
175,925
-
175,925
155,109
1,232
Resources
expended
(173,984)
-
(173,984)
(153,316)
(1,232)
Net incoming
resources for the
year
1,941
-
1,941
1,793
-
Reserves at 31
March
(123,808)
-
(123,808)
(125,749)
-		 2022
Total
funds
£
1,221,493
(1,211,198)
10,295
153,908
2022
Total
funds
£
156,341
(154,548)
1,793
(125,749)

(i) A summary of the results of Bulky Bob's For Business for the year is shown below.

27

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

4 Income from donations

Unrestricted
funds
£
Kickstart
-
Coronavirus Job
Retention Scheme
-
Other donation
-
Steve Morgan
Foundation
-
Duchy of Lancaster
-
Fusion 21
-
Total donations
-
5
Income from charitable activities
Provision of furniture/furniture
packages
Provision of bulky household waste
collection and recycling services
Charity shop sales
Provision of other recycling services
Other income
Total charitable activities		 Restricted
Total
Unrestricted
Restricted
Total
funds
2023
funds
funds
2022
£
£
£
£
£
-
-
-
82,392
82,392
-
-
6,467
-
6,467
-
-
-
150
150
7,500
7,500
-
-
-
5,000
5,000
-
-
-
25,000
25,000
-
-
-
37,500
37,500
6,467
82,542
89,009
U nrestricted
Restricted
Total
Total
funds
funds
2023
2022
£
£
£
£
18,033,798
-
18,033,798
14,277,981
699,343
-
699,343
882,862
138,007
-
138,007
209,780
109,158
-
109,158
123,857
-
-
-
1,673
18,980,306
-
18,980,306
15,496,153

All income from charitable activities was unrestricted in both the current and the prior year.

6 Expenditure on charitable activities

Provision of furniture/furniture packages
Charity shop sales
People development
Provision of bulky household waste collection and
recycling services
Provision of other recycling services
Other
Total charitable activities expenditure		 Direct
Costs
£
15,253,516
300,931
309,093
726,207
348,308
-
16,938,055		 Support
£
1,767,258
11,018
109,209
55,828
8,713
-
1,952,026		 Total
2023
£
17,020,774
311,949
418,302
782,035
357,021
-
18,890,081

Total expenditure on charitable activities was £18,890,081 (2022 - £14,991,863), of which £25,000 (2022 - £91,352) was restricted and £18,865,081 (2022 - £14,900,511) was unrestricted.

28

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

6 Expenditure on charitable activities (continued)

Provision of furniture/furniture packages
Charity shop sales
People development
Provision of bulky household waste collection and
recycling services
Provision of other recycling services
Other
Total charitable activities expenditure		 Direct
Costs
£
11,676,839
340,462
265,654
873,322
242,654
91,942
13,490,873		 Support
£
1,361,055
17,084
66,086
41,651
15,035
79
1,500,990		 Total
2023
£
13,037,894
357,546
331,740
914,973
257,689
92,021
14,991,863

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
an d furniture
packages
Support cost
£
Property cost
327,628
Staff costs
627,370
ICT costs
146,813
Depreciation
93,508
Bad debt
16
Governance
42,021
General office
529,902
1,767,258		 Provision of bulky
Charity
household waste
shop
People
collection and
sales
development
recycling services
£
£
£
-
109,209
-
4,801
-
24,329
1,124
-
5,693
716
-
3,626
-
-
1
322
-
1,630
4,055
-
20,549
11,018
109,209
55,828		 Provision
of others
recycling
Services
£
-
3,797
889
566
-
254
3,207
8,713		 Total
2023
£
436,837
660,297
154,519
98,416
17
44,227
557,713
1,952,026

29

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

7 Allocation of support costs (continued)

Provision
of
furniture
and
furniture
packages
Support cost
£
Property cost
198,259
Staff costs
584,202
Vehicle costs
-
ICT costs
144,217
Depreciation
105,357
Governance
25,272
General office
303,748
1,361,055
Governance costs
Social audit
Audit and accountancy
Directors’ insurance		 Provision
of bulky
household
waste
Charity
collection
shop
People
and recycling
sales
development
services
£
£
£
-
66,086
-
8,583
25,867
-
-
-
2,119
-
-
1,548
-
-
371
-
2,744
4,463
-
13,040
17,084
66,086
41,651		 Provision
of others
recycling
Services
Other
£
£
-
-
7,684
49
307
-
-
-
-
-
3,250
5
3,794
25
15,035
79
2023
£
5,486
31,210
7,531
44,227		 Total
2022
£
264,345
626,385
307
146,336
106,905
31,642
325,070
1,500,990
2022
£
7,000
18,000
6,644
31,644

8 Governance costs

30

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

9
Analysis of staff costs and the cost of key management personnel
Group
Group
2023
2022
£
£
Staff costs:
Wages and salaries
3,784,750
3,341,948
Social Security costs
292,278
244,431
Pension costs
167,322
143,834
4,244,350
3,730,213
The emoluments of higher paid employees fell within the following ranges:
£60,000 - £70,000
£70,001 - £80,000
£100,001 - £110,000
£110,001 - £120,000		 Charity
Charity
2023
2022
£
£
3,317,540
2,735,136
256,623
204,384
150,461
126,193
3,724,624
3,065,713
2023
2022
Number
Number
1
1
2
1
-
1
1
-

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 cost of the key management personnel was £433,207 (2021: £361,354).

During the year, redundancy costs of £27,950 (2022 - £5,512) were paid by the group. Redundancy costs of £22,829 were paid by the charity (2022 - £nil).

The average number of employees analysed by function, was:

Provision of furniture and furniture packages
Training
Retail
Bulky Bob’s collection, recycling and reuse of unwanted furniture
Bulky Bob's For Business
Management, Finance, Administration and ICT
End Furniture Poverty
Headcount at the end of the year		 2023
2022
Number
Number
77
68
4
6
6
8
20
25
-
1
14
14
2
2
123
124
119
125

31

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

10 Trustee remuneration and related party transactions

No trustee received any remuneration during the year ended 31 March 2023 (2022 - £nil).

No travel costs were reimbursed to trustees in the year (2022 - £nil).

Related party transactions are shown in note 23 to the accounts.

11 Net incoming resources for the year

12
Intangible assets
Group
Cost or valuation
At 1 April 2022
Disposal
At 31 March 2023
Amortisation
At 1 April 2022
Disposal
At 31 March 2023
Net book value
At 1 April 2022 and 31 March 2023
This is stated after charging:
Auditors’ remuneration:
•Audit services
•Non-audit services
Depreciation and amortisation
Loss on disposal
Operating lease rentals:		 Group
2023
£
20,210
5,487
120,866
5,836
913,703		 Group
2022
£
18,000
7,000
144,637
21,581
744,290		 Goodwill
£
97,600
(97,600)
-
97,600
(97,600)
-
-
Company
2023
£
18,710
5,486
104,377
-
774,248		 Total
£
97,600
(97,600)
-
97,600
(97,600)
-
-
Company
2022
£
12,000
7,000
120,769
23,502
560,033

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.

32

Furniture Resource Centre Limited

Notes to the Accounts for the year ended 31 March 2023 (continued)

12 Intangible assets (continued)

Charity
Cost or valuation
At 1 April 2022
Disposal
At 31 March 2023
Amortisation
At 1 April 2022
Disposal
At 31 March 2023
Net book value
At 1 April 2022 and 31 March 2023		 Goodwill
£
90,000
(90,000)
-
90,000
(90,000)
-
-		 Total
£
90,000
(90,000)
-
90,000
(90,000)
-
-

13 Tangible fixed assets

Improvements
to leasehold
property
Group
£
Cost or valuation
At 1 April 2022
917,269
Additions
4,769
Disposals
(4,638)
At 31 March 2023
917,400
Accumulated
depreciation
At 1 April 2022
839,569
Charge for the
year
16,509
Disposals
(825)
At 31 March 2023
855,253
Net book value
At 31 March 2023
62,147
At 31 March 2022
77,700		 Plant and
machinery
£
308,153
11,063
(1,826)
317,390
151,505
37,650
(1,098)
188,057
129,333
156,648		 Fixtures,
fittings and
equipment
£
294,899
5,140
(2,955)
297,084
246,912
29,667
(1,660)
274,919
22,165
47,987		 Computer
equipment
£
469,223
42,373
(880)
510,716
410,301
37,040
(880)
446,461
64,255
58,922		 Assets
under
construction
£
123,014
119,159
-
242,173
-
-
-
-
242,173
123,014		 Total
£
2,112,558
182,504
(10,299)
2,284,763
1,648,287
120,866
(4,463)
1,764,690
520,073
464,271

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

33

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

13 Tangible fixed assets (continued)

Improvements
to leasehold
property
Charity
£
Cost or valuation
At 1 April 2022
892,907
Additions
3,594
Disposals
-
At 31 March 2023
896,501
Accumulated
depreciation
At 1 April 2022
832,065
Charge for the
year
14,105
Disposals
-
At 31 March 2023
846,170
Net book value
At 31 March 2023
50,331
At 31 March 2022
60,842		 Plant and
machinery
£
245,592
11,063
-
256,655
106,828
29,836
-
136,664
119,991
138,764		 Fixtures,
fittings and
equipment
£
268,436
2,554
-
270,990
230,751
24,136
-
254,887
16,103
37,685		 Computer
equipment
£
460,373
42,373
-
502,746
402,424
36,300
-
438,724
64,022
57,949		 Assets
under
construction
£
123,015
119,159
-
242,174
-
-
-
-
242,174
123,015		 Total
£
1,990,323
178,743
-
2,169,066
1,572,068
104,377
-
1,676,445
492,621
418,255

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

14 Stock

Stock
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Finished goods 1,202,650 1,190,923 1,198,483 1,187,291

34

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

15 Debtors

Trade debtors
Prepayments
Amounts due from subsidiary
undertakings
Other debtors		 Group
2023
£
3,448,654
310,849
-
46,948
3,806,451		 Group
Charity
Charity
2022
2023
2022
£
£
£
3,233,998
3,304,603
2,953,047
281,457
292,542
245,263
-
147,627
177,446
60,076
44,041
57,738
3,575,531
3,788,813
3,433,494

The amount due from subsidiary undertaking relates to an amount due from Bulky Bob's For Business. The balance is due on demand and incurs interest at a rate of 4% per annum, compounded daily. The impairment loss recognised in the SOFA for the year in respect of bad and doubtful trade debtors was £Nil (2022 - £nil).

16 Investments

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Cash held on deposit 182,925 182,479 182,925 182,479

The amount shown under cash held on deposit above relates to cash held in fixed term deposits maturing prior to 31 March 2024.

17 Creditors

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Trade creditors 1,200,432 1,538,374 1,167,392 1,506,067
Amounts owed to subsidiary
undertakings - - - 4,950
Other taxation and social security 330,913 290,177 323,531 246,773
Other creditors 28,501 69,472 27,531 65,641
CBILS loan 125,000 125,000 125,000 125,000
Accruals and deferred income 604,928 526,061 557,933 399,553
2,289,774 2,549,084 2,201,387 2,347,984
Amounts due to subsidiary undertakings are interest free and repayable on demand.
Loan due after more than one year
CBILS loan due in 1-2 years 125,000 125,000 125,000 125,000
CBILS loan due in 2-5 years 93,750 218,750 93,750 218,750
Creditors due in more than one year 218,750 343,750 218,750 343,750

35

Furniture Resource Centre Limited

Notes to the Accounts for the year ended 31 March 2023 (continued)

17 Creditors (continued)

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 final repayment being due December 2026. The loan is secured by a fixed and floating charge over the assets of the charity.

18 Deferred income

Deferred income comprises income received in advance of delivery of service. During the year the contract with Liverpool City Council ceased and there was no deferred income at year end.

Balance at the start of the year
Amount released to incoming resources
Amounts deferred in the year
Balance at the end of the year
Funds
Group
Restricted funds
Fusion-21
Time for Bed
Total restricted funds
Unrestricted funds
Total funds		 Group
Charity
Group
£
£
£
93,713
-
12,306
(93,713)
-
(513,978)
-
-
595,385
-
-
93,713
Balance at
Movement in
1 April
resources
2022
Incoming
Outgoing
£
£
£
-
25,000
(25,000)
-
12,500
-
-
37,500
(25,000)
3,495,470
19,048,449
(18,865,081)
3,495,470
19,085,949
(18,890,081)		 Charity
£
-
-
-
-
Balance at
31 March
2023
£
-
12,500
12,500
3,678,838
3,691,338

19 Funds

Those funds with balances at 31 March 2023 or 31 March 2022 represent funds received and used for the following purposes.

36

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

19 Funds (continued)

Balance at
Movement in
1 April
resources
2022
Incoming
Outgoing
Charity
£
£
£
Restricted funds
Fusion-21
-
25,000
(25,000)
Time for Bed
-
12,500
-
Total restricted funds
-
37,500
(25,000)
Unrestricted funds
3,467,313
18,456,800
(18,272,970)
Total funds
3,467,313
18,494,300
(18,297,970)
Movement in funds for the year ended 31 March 2022 are shown below.
Balance at
Movement in
1 April
resources
2021
Incoming
Outgoing
Group
£
£
£
Restricted funds
Made Smarter Grant (i)
8,810
-
(8,810)
Kickstart (ii)
-
40,758
(40,758)
Donation to purchase a bed (ii)
-
150
(150)
Total restricted funds
8,810
40,908
(49,718)
Unrestricted funds
2,861,760
15,534,221
(14,900,511)
Total funds
2,870,570
15,575,129
(14,950,229)		 Balance at
31 March
2023
£
-
12,500
12,500
3,651,143
3,663,643
Balance at
31 March
2022
£
-
-
-
-
3,495,470
3,495,470

Movement in funds for the year ended 31 March 2022 are shown below.

Restricted funds with balances at 31 March 2023 or 31 March 2022 represent funds received and used for the following purposes.

(i) Funding for the development of mattress cleaning machinery received by Bulky Bob's but transferred to Furniture Resource Centre Limited on 31 March 2021 along with the mattress cleaning machinery

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

(ii) Funding for staff development and training

(iii) Funding from a member of the public to purchase a bed for someone in need

37

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

19 Funds (continued)

Charity
Restricted funds
Made Smarter Grant (i)
Kickstart (ii)
Donation to purchase a bed (ii)
Total restricted funds
Unrestricted funds
Total funds		 Balance at
1 April
2021
£
8,810
-
-
8,810
2,845,691
2,854,501		 Movement in
resources
Incoming
Outgoing
£
£
-
(8,810)
40,758
(40,758)
150
(150)
40,908
(49,718)
14,712,870
(14,091,248)
14,753,778
(14,140,966)		 Balance at
31 March
2022
£
-
-
-
-
3,467,313
3,467,313

20 Analysis of net assets between funds

U nrestricted
Group
£
Fixed assets
520,073
Net current
assets
3,377,515
Non-current
liabilities
(218,750)
Net assets
3,678,838
U nrestricted
Charity
£
Fixed assets
492,621
Net current
assets
3,377,272
Non-current
liabilities
(218,750)
Net assets
3,651,143		 Restricted
£
-
12,500
-
12,500
Restricted
£
-
12,500
-
12,500		 2023
Total
Unrestricted
£
£
520,073
464,271
3,390,015
3,374,949
(218,750)
(343,750)
3,691,338
3,495,470
2023
Total
Unrestricted
£
£
492,621
418,255
3,389,772
3,392,808
(218,750)
(343,750)
3,663,643
3,467,313		 2022
Restricted
Total
£
£
-
464,271
-
3,374,949
-
(343,750)
-
3,495,470
2022
Restricted
Total
£
£
-
418,255
-
3,392,808
-
(343,750)
-
3,467,313

38

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

21 Operating lease commitments

At 31 March 2023, the commitments under non-cancellable operating leases are as follows:

Group
Expiry within:
Under one year
Two to five
years
Charity
Expiry within:
Under one year
Two to five
years
Over five years		 Land and
buildings
£
195,123
191,221
386,344
Land and
buildings
£
255,551
208,182
-
463,733		 Other
£
79,834
-
79,834
Other
£
75,228
-
-
75,228		 Total
2023
£
274,957
191,221
466,178
Total
2023
£
330,779
208,182
-
538,961		 Land and
buildings
£
363,241
462,890
826,131
Land and
buildings
£
351,508
462,890
-
814,398		 Total
Other
2022
£
£
87,605
450,846
32,493
495,383
120,098
946,229
Total
Other
2022
£
£
51,989
403,497
26,646
489,536
-
-
78,635
893,033

22 Pension commitments

The charity and group operate 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.

For the group, the annual contributions under this scheme were £167,322 (2022 - £143,834). The creditor at year was £24,230 (2022 - £26,074) and is included in creditors.

For the charity, the annual contributions under this scheme were £150,461 (2022 - £124,257). The creditor at year was £22,854 (2022 - £22,929) and is included in other creditors.

39

Furniture Resource Centre Limited

Notes to the Accounts for the year ended 31 March 2023 (continued)

23 Related parties

Bulky Bob’s

In the year ended 31 March 2022, the following transactions took place between Furniture Resource Centre Limited and Bulky Bob's, a charity for which Furniture Resource Centre Limited is the sole member.

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

Recharge for staff costs: £20,242 (2022 - £65,082) Recharge for shared services: £79,520 (2022 - £118,776) Recharge for premises costs: £86,973 (2022 - £21,593) Recharge for logistics costs: £51,204 (2022 - £61,256) Recharge for general costs: £37,300 (2022 - £62,917) Recharge for staff training costs: £6,329 (2022 - £1,705) Donation: £330,000 (2022 - £374,000) Transfer of refurbished bed bases - £41,655 (2022 - £Nil)

Transactions from Bulky Bob's to Furniture Resource Centre Limited:

Recharge for staff costs: £116,121 (2022 - £102,397) Recharge for logistics services: £9,390 (2022 - £4,699) Recharge for general costs: £34,481 (2022 - £118,750) Recharge for premises costs: £Nil (2022 - £25) Sale of fixed assets: £Nil (2022 - £5,250) Mattress machine income: £27,828 (2022 - £27,828)

The amount owed by Furniture Resource Centre Limited to Bulky Bob's at 31 March 2023 was £Nil (2022 - £4,951). The amount owed by Bulky Bob’s to Furniture Resource Centre Limited at 31 March 2023 was £11,705 (2022 - £Nil).

Bulky Bob’s for Business

In the year ended 31 March. 2023, the following transactions took place between Furniture Resource Centre Limited and Bulky Bob’s For Business, a charity for which Furniture Resource Centre Limited is the sole member.

Transactions from Furniture Resource Centre Limited to Bulky Bob’s For Business: Recharge for staff costs: £56,455 (2022 - £35,625) Recharge for shared services: £19,427 (2022 - £19,559) Recharge for logistics costs: £5,566 (2022 - £10,281) Recharge for general costs: £13,286 (2022 - £13,564) Recharge for staff training costs: £390 (2022 - £5) Donation: £25,000 (2022 - £nil) Recharge for waste disposal costs: £50,004 (2022 - £Nil)

Transactions from Bulky Bob's For Business to Furniture Resource Centre Limited Recharge for logistics costs: £3,415 (2022 - £12,523) Recharge for staff costs: £2,245 (2022 - £Nil) Recharge for general costs: £Nil (2022 - £1,293) Interest on intercompany borrowing £6,100 (2022 - £Nil)

The amount owed by Bulky Bob’s to Furniture Resource Centre Limited at 31 March 2023 was £135,922 (2022 - £177,447).

40

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

23 Related parties (continued)

During the year, sales of £Nil (2022: £609) were made by Bulky Bob's For Business to PSS (UK), a charity whose Chief Executive Officer is also a trustee of the charity.

During the year, sales of £929 (2022 - £9,347) were made to Regenda Homes, an organisation with a director who is also a trustee of the charity.

24 Commitments

There were capital commitments at 31 March 2023 of £75,198 (2022 - £Nil).

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

Net incoming resources for the year
Depreciation and amortisation
Loss on disposal of assets
Finance income
Interest charge
(Increase) in stock
(Increase) in debtors
Increase in creditors
Cash generated from operations
Net debt reconciliation
Cash at bank and in hand
Bank loans
HP loan
Net cash		 1 April
2022
£
975,100
(468,750)
(2,217)
504,133		 Cash flows
£
(480,561)
142,475
2,142
(335,944)		 2023
£
195,868
120,866
5,836
(446)
24,493
(11,727)
(230,920)
(264,186)
(160,216)
Interest
charge
£
(6,776)
(17,475)
(242)
(24,493)		 2022
£
624,900
144,637
21,581
(686)
-
(194,581)
(546,863)
455,007
503,995
31 March
2023
£
487,763
(343,750)
(317)
143,696

26 Net debt reconciliation

27 Ultimate controlling party

Furniture Resource Centre Limited has no controlling party.

41

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2023 (continued)

28
Comparative SOFA information
Total
U nrestricted
funds
£
Income and endowments from:
Donations and legacies
6,467
Charitable activities:
15,496,153
Investments
686
Other
30,915
Total
15,534,221
Expenditure on:
Charitable activities
14,900,511
Total resources expended
14,900,511
Net incoming resources
633,710
Balance brought forward at 1 April
2,861,760
Balances carried forward at 31 March
3,495,470		 Total
Restricted
funds
£
82,542
-
-
-
82,542
91,352
91,352
(8,810)
8,810
-		 Total
Funds
31 March
2022
£
89,009
15,496,153
686
30,915
15,616,763
14,991,863
14,991,863
624,900
2,870,570
3,495,470

42