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2024-03-31-accounts

Furniture Resource Centre Limited

(A Company Limited by Guarantee)

Annual Report and Financial Statements

Year Ended

31 March 2024

Registered Number 02296329 Registered in England and Wales 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 A Courtney
C Dixon
J Hines
N Spruyt
F Vepari
J Vernon
Secretary C Williamson
Chief Executive S Doran
Registered office 1 Cartwrights Farm Road
Liverpool
L24 1UY
Bankers NatWest Bank
2-8 Church Street
Liverpool
L1 3BG
Auditors Crowe UK LLP
3rd Floor
St George's House
56 Peter Street
Manchester
M2 3NQ
Solicitors Brabners
Horton House
Exchange Flags
Liverpool
L2 3YL

Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

The directors, who are also the trustees of the charity, present their annual report and financial statements for the year ended 31 March 2024.

GLOSSARY

Our mission

Our programmes:

To reduce and ultimately eradicate furniture poverty.

Buckingham Interiors

End Furniture Poverty

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

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

Driving Change

Our objectives are:

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.

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.

Bulky Bob's

Provides a bulky household waste collection service mainly 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.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

This report looks at the financial year of April 2023 - March 2024. At FRC Group, we’ve spent 35 years working to end furniture poverty as a contract furniture specialist and social enterprise. Through FRC Group (operating under the brands of FRC Living, Buckingham Interiors, Furniture Flex, and our advocacy arm, End Furniture Poverty) we provide contract furniture, interior design, installation, and flexible procurement for various sectors. As a non-profit, every penny we earn supports our social mission—helping those in need by providing essential furniture and working to end furniture poverty. This year was no exception as despite the loss of a key contract resulting in an overall reduction in income of 6%, we were able to grow income in other areas of the organisation whilst managing our cost base to achieve a net surplus higher than the previous year. This surplus being 100% reinvested to achieve our mission to end furniture poverty.

This was would not have been achieved without our FRC Group team living by our values to be brave, creative, passionate and professional as we continue to deliver a fantastic service.

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 16 - 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, Furniture Flex, Bulky Bob's, Bulky Bob’s for Business and Reuse IT.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

Strategic Report

Overview of 2023-2024

Furniture Resource Centre

Once again, the level of challenge faced in 2023-24 was extraordinary as we continue to feel the impact of the current economic climate, with many of our customers, mostly councils and housing associations, continuing to experience reductions in their own budgets despite increasing demands for furniture by people in poverty.

As a result our customers are continuing to have to make tough decisions and in year we saw the withdrawal of support through the Liverpool Citizen Support Scheme to tenants of social landlords that left many hundreds of families in Liverpool in desperation. At FRC Group we worked hard at every level to remedy this situation, campaigning hard to do what it takes to keep welfare schemes in place and support councils with solutions that can help ensure their tenants still access essential furniture items that they desperately need.

This year highlighted the serious financial challenges that our local authority customer base are experiencing with continued reduction in funding from central government. Birmingham Council, one of our customers was issued a section 114 notice and began to withdraw from the provision of non statutory services. This has impacted upon (non statutory) local welfare assistance, leaving thousands of families in furniture poverty without support.

As we anticipated the budgetary challenges of our customers, in year we launched a new service, Furniture Flex as an alternative and very different way in which people in furniture poverty can be helped through the rental of furniture items. Furniture Flex was launched at the Liverpool Housing Summit in year and has been well received by social landlords. The offering is aimed solely at social landlord’s tenants and is therefore not a wholesale replacement for local welfare assistance but will offer support to some of our most vulnerable citizens.

Despite the above challenges, we have continued to grow income within FRC Living and Buckingham Interiors. By supplying furniture into sheltered accommodation through an increased customer base, we achieved combined income growth of 16% within these areas that has mitigated the impact of reducing spend with some of our council and housing association customers.

The work we have put into our 3 year Impact Strategy and forthcoming operational delivery plan puts us in a good position to withstand the undoubted turbulence that we will continue to face in the next few years as well as continue to grow our customer base within Buckingham Interiors. The overall plan identifies and maximises opportunities to make a difference whilst also managing the challenges of even further local government austerity through 3 key priorities that are 1) Making money to end furniture poverty, 2) Helping people avoid furniture poverty and 3) Helping people relieve furniture poverty.

The plan also includes a number of different but connected initiatives and events are coalescing to create an ambitious and exciting future which will see FRC Group doing more than ever to End Furniture Poverty.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

Overview of 2023-2024 (continued)

Furniture Resource Centre (continued)

These include:

Despite the external challenges and problems, there is a palpable increase in excitement, optimism, positivity and confidence within FRC Group.

End Furniture Poverty

The End Furniture Poverty (EFP) team continued its work on the 3 broad fronts of public sector support for people in poverty, housing associations and furniture reuse through raising 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.

EFP have campaigned extensively throughout the year for the expansion of furnished tenancy provision and participated in a raft of webinars and conferences and also worked directly with individual housing associations, sharing solutions to help make this happen.

In the year EFP continued to promote the findings of our Extent of Furniture Poverty report and presented this at numerous conferences, seminars, webinars and meetings and also briefed other charities to ensure a shared knowledge and understanding of, and response to, furniture poverty.

EFP also worked tirelessly to convene a Housing Summit which brought all parties - Liverpool City Council and leading social landlords - together to discuss furnished tenancies as an alternative support model following the removal of LCSS grants for social landlord’s tenants.

Work also commenced on the next flagship report examining crisis support in the UK – and Local Welfare Assistance in particular. On The Cliff Edge: The State of Crisis Support 2022/2023 which we published in Q4 revealed that 62% (c£55m) of local authorities investment in LWA came from the government’s Household Support Fund (HSF). As a result we became the flag bearer for the fight to persuade the government to maintain the Household Support Fund and our hard work paid off with a temporary extension of the HSF in the Spring budget. EFP worked tirelessly in running an evidence based campaign to keep HSF in place. A key focus of the entire campaign was our vital research on the importance of HSF to the continuation of any kind of local authority crisis support demonstrated through our report.

This year saw the official launch of ‘Time for Bed’ providing beds to children between the ages of 0-18 years from across Merseyside who do not have a bed of their own funded through donations, grants, and corporate partnerships. Within year, we gave beds to 85 children through the ‘Time for Bed’ charity.

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.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

Overview of 2023-2024 (continued)

Furniture Resource Centre (continued)

Bulky Bob’s

Following the cessation of the contract with Liverpool City Council, Bulky Bob’s piloted a new service in Liverpool aimed at householders. The pilot was unsuccessful and was withdrawn in November 2023. However Bulky Bob’s continues to operate the Oldham Council bulky waste contract, a combined service which collects, reuses and recycles furniture and provides great quality preloved furniture – along with new furniture – to Oldham’s LWA scheme.

Bulky Bob’s for Business

Through Bulky Bob’s for Business we continued to collect, datawipe and refurbish IT equipment which is then sold at low cost or donated.

Financial review

Financial Performance

2023-24 was a challenging year financially with the significant reduction of income of a key contract, Liverpool Citizens Support Scheme (c£4m) which contributed to a 6.3% reduction in income in year from £19m in 2022-23 to £17.8m in 23-24. The reduction was partially offset by increases in other areas of income (project based work through FRC Living and Buckingham Interiors).

We see an equivalent reduction in trading expenditure, reducing by 7.4% from £18.9m in 2022-23 to £17.5m in 202324 with the cost base being tightly managed following the reduction of income from the LCSS contract. However we have included a provision for dilapidation fees for two sites due to close in summer 2024 of £334k, that increases expenditure for the financial year to £17.8m. This results in an overall net ongoings of £126k compared to £195k surplus in the prior year.

Looking ahead we expect income to increase in the following year to £18m in Furniture Resource Centre Limited as we continue to improve sales across all other areas of the business to mitigate the impact of reduced Local Welfare Provision income with the uncertainty around the Household Support Fund (HSF) at the end of the 6-month extension (to September 2024). The property move will incur additional one-off costs in year for property improvements ahead of relocation, however will be more cost efficient with the consolidation of two sites therefore we expect our trading surplus to improve on the prior year.

Both subsidiary entities, Bulky Bobs and Bulky Bobs for Business will continue to be financially supported by Furniture Resource Centre Limited whilst these remain in a net liabilities position.

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 2023-24, we continued to receive a grant from the Steven Morgan Foundation to support a new charity initiative ‘Time for Bed’ launched in this financial year, alongside a number of various donations.

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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 operational expenditure 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.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

Financial review (continued)

Financial Performance (continued)

At 31 March 2024, consolidated free reserves of £2,767,038 were held (calculated as unrestricted reserves not held in fixed assets), which is £1,232,962 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 2024, the group holds restricted reserves of £40,780 (2023: £12,500) and total reserves of £3,969,806 (2023 - £3,691,338).

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 2025 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 move to the new site in summer 2024 will make a huge difference 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. Future financial forecasts show the continued generation of trading 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:

Ways of working more efficiently, growing the gross margin and running services in a more cost effective manner will always be followed.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

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
Potential loss of Local Welfare
Provision Contracts with
uncertainty around Household
Support Fund		 We have other business areas that we can grow to reduce the overall impact to
any loss in Local Welfare Provision contracts
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
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
Housing Associations due to
the challenging financial
environment and with Councils
experiencing bankruptcy.		 •
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 income
•
New rental service offering that would be more cost effective with lower
financial risk to customers
•
Continue to diversify customer base as far as possible.
Availability of pre-loved
furniture decreases through
contract changes or loss of
contracts that provide pre-
Ioved furniture
National shortage of Large
Goods Vehicle Drivers
meaning greater reliance on
agency staff that also can
impact the quality of service
provided		 •
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
•
Review salary and overall package to be more competitive and attractive for
drivers

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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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

Key Performance Indicators

The group utilises 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.

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 2024

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 10. 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:

J Hines J Vernon J Nicholls (resigned 27 July 2023) N Spruyt (appointed 31 May 2023) E Leach (resigned 19 November 2023) E Bichard (resigned 1 March 2024) A Courtney (appointed 27 September 2024) C Dixon (appointed 27 September 2024) F Vepari (appointed 27 September 2024)

Statement of Public Benefit

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

This includes 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 2024

FRC Group Company Structure

FRC 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.

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.

Code of Governance statement

The board continue to work towards fully adopting the Charity 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:

A 3 year impact strategy was developed by the Senior Leadership Team and was approved by the Board of Trustees in December 2023. The three priorities of the plan are:

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Annual report For the Year Ended 31 March 2024

Code of Governance statement (continued)

The impact strategy also sets out the way we work to ensure:

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, regular sub-committees have commenced in 2024 attended by the relevant Trustees covering areas of People and Culture, Service Delivery and the Housing Sector. 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 and a forthcoming review in 2024. Key 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 in order to obtain honest feedback following the conclusion of the annual financial audit.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

Code of Governance Statement (continued)

• 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.

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.

• 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.

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 2023 – 24 we continued to work hard to ensure that we are a great employer, to help us to recruit and retain the best people. We are accredited with 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.

The accreditation means we meet the standards across FRC Group for:

To achieve these standards we will continue to:

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

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 all departments of the FRC Group, including satellite sites with an appointed Health and Safety Advisor to manage and prompt overall safety.

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

We have one trained health and safety advisor with NEBOSH (National Examination Board in Occupational Safety and Health) and a number of IOSH trained staff.

Health and Safety Training is a priority, embedding safe systems of work and safety standards from the outset, with our staff being trained in Health and Safety from the point of their induction throughout their working life within the Company using a variety of mediums ranging from Toolbox talks, our online platform training provider IHASCO as well as external training providers to instil skills, knowledge and safety awareness to enable staff to complete their roles in the safest of manners.

As a result of proactive training and increasing staff awareness, incident, hazard and near miss reporting have steadily risen during 2023/24 demonstrating an environmental safety awareness across sites:

Accident levels have remained the same at 16 reports – the majority pertaining to manual handling injuries which is not unexpected due to the type of operation carried out.

1 RIDDOR report was made under the dangerous occurrence criteria relating to the unauthorized removal of asbestos (compared to 1 RIDDOR report in 2022/23)

Targets for next year are to:

Continue to raise standards, keep abreast of health and safety developments, maintain industry standards and promote a safety culture within FRC.

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Furniture Resource Centre Limited

Annual report For the Year Ended 31 March 2024

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 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.

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 and signed on its behalf by

C Williamson Secretary

Date: 19[th ] December 2024

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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 2024 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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Independent auditor's report to members of Furniture Resource Centre Limited

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.

18

Furniture Resource Centre Limited

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

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 noncompliance 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 3rd floor St George's House 56 Peter Street Manchester M2 3NQ 20th December 2024

19

Furniture Resource Centre Limited

Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31 March 2024

Unrestricted
Note
funds
2024
£
Income and endowments from:
Donations and grants
4
-
Charitable activities:
5
17,626,063
Investments
6,952
Other
2,141
___
Total
17,635,156
___
Expenditure on:
Charitable activities
6
17,789,747
___
Total resources expended
17,789,747
___
Net incoming/(outgoing) resources
(154,592)
Balances brought forward at 1 April
3,678,838
___
Balances carried forward at 31 March
3,524,246
 Restricted
funds
2024
£
136,139
-
-
-
___
136,139
___
107,859
___
107,859
___
28,280
12,500
___
40,780
 Total
funds
2024
£
136,139
17,626,063
6,952
2,141
___
17,771,295
___
17,897,606
___
17,897,606
___
(126,312)
3,691,338
___
3,565,026
 Total
funds
2023
£
37,500
18,980,306
446
67,697
_
19,085,949
_
18,890,081
_
18,890,081
_
195,868
3,495,470
___
3,691,338

The notes on pages 22 to 40 form part of these financial statements.

20

Furniture Resource Centre Limited

Consolidated and Charity Balance Sheets as at 31 March 2024

Company Registration Number 02296329 Charity Registration Number 700731

Group Group Charity Charity
Note 2024 2023 2024 2023
£ £ £ £
Fixed assets
Tangible assets 12 757,208 520,073 738,592 492,621
___ ___ ___ ___
757,208 520,073 738,592 492,621
___ ___ ___ ___
Current assets
Stock 13 1,078,434 1,202,650 1,078,434 1,198,483
Debtors 14 2,952,141 3,806,451 3,107,813 3,788,813
Investments 15 1,617 182,925 1,617 182,925
Cash at bank and in hand 1,170,452 487,763 1,138,708 420,938
___ ___ ___ ___
5,202,644 5,679,789 5,326,572 5,591,159
Creditors: amounts falling due
within one year 16 (2,301,076) (2,289,774) (2,228,749) (2,201,387)
___ ___ ___ ___
Net current assets 2,901,568 3,390,015 3,097,823 3,389,772
___ ___ ___ ___
Total assets less current
liabilities 3,658,776 3,910,088 3,836,415 3,882,393
Creditors: amounts falling
due after more than one year 16 (93,750) (218,750) (93,750) (218,750)
___ ___ ___ ___
Net assets 3,565,026 3,691,338 3,742,665 3,663,643
___ ___ ___ ___
Funds
Unrestricted 17 3,524,246 3,678,838 3,701,885 3,651,143
Restricted 17 40,780 12,500 40,780 12,500
___ ___ ___ ___
Total funds 18 3,565,026 3,691,338 3,742,665 3,663,643
___ ___ ___ ___

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 £79,022 (2023 - £196,330).

The financial statements were approved by the Board of Directors and authorised for issue on 19[th ] December 2024 and signed on their behalf by

N Spruyt Director

The notes on pages 22 to 40 form part of these financial statements.

21

Furniture Resource Centre Limited

Consolidated Cash Flow Statement for the year ended 31 March 2024

Note
Cash flows from operating activities:
Cash generated from/(used in) operations
23
Net cash inflow/(outflow) from operating activities
Cash flows from investing activities:
(Purchase of) fixed assets
Withdrawal of cash investments
Net cash (outflow) from investing activities
Cash flows from financing activities
Repayment of loan
Loan interest paid
Repayment of finance lease
Hire purchase interest paid
Net cash (outflow) from financing activities
Increase/(decrease) 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		 2024
£
969,643
___
969,643
___
(330,855)
188,246
___
(142,609)
___
(125,000)
(19,325)
-
(20)
___
(144,345)
___
682,689
487,763
___
1,170,452
 2023
£
(160,216)
_
(160,216)
_
(182,504)
-
_
(182,504)
_
(125,000)
(17,475)
(1,900)
(242)
_
(144,617)
_
(487,337)
975,100
___
487,763

The notes on pages 22 to 40 form part of these financial statements.

22

Furniture Resource Centre Limited

Notes to the Accounts for the year ended 31 March 2024

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 Charities 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.

The financial statements are prepared in pounds sterling, which is the functional currency of the charity, and are rounded to the nearest £.

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 trading 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 2024 (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 2024 (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 2024 (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
16,996,076
Resources expended
(16,945,334)
__
Net incoming
resources for year
50,742
 Restricted
funds
£
136,139
(107,859)
__
28,280
 Total
Unrestricted
2024
funds
£
£
17,132,215
18,456,800
(17,053,193)
(18,272,970)
__
__
79,022
183,830

 Restricted
funds
£
37,500
(25,000)
__
12,500
 Total
2023
£
18,494,300
(18,297,970)
__
196,330

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 2024 (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.

Unrestricted
funds
£
Incoming resources
760,111
Resources expended
(937,683)
__
Net incoming
resources for year
(177,572)
__
Reserves at 31 March
(26,069)
 Restricted
funds
£
-
-
__
-
__
-
 2024
Total
Unrestricted
funds
funds
£
£
760,111
1,057,232
(937,683)
(1,059,637)
__
_
(177,572)
(2,405)
__
_
(26,069)
151,503

 Restricted
funds
£
-
-
_
-
_
-
 2023
Total
funds
£
1,057,232
(1,059,637)
_
(2,405)
_
151,503

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

Unrestricted
funds
£
Incoming resources
87,408
Resources expended
(115,170)
__
Net incoming
resources for year
(27,762)
__
Reserves at 31 March
(151,570)
 Restricted
funds
£
-
-
__
-
__
-
 2024
Total
Unrestricted
funds
funds
£
£
87,408
175,925
(115,170)
(173,984)
__
_
(27,762)
1,941
__
_
(151,570)
(123,808)

 Restricted
funds
£
-
-
_
-
_
-
 2023
Total
funds
£
175,925
(173,984)
_
1,941
_
(123,808)

27

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

4 Income from donations and grants

Unrestricted
Restricted
funds
funds
£
£
Steve Morgan Foundation
-
30,000
Duchy of Lancaster
-
-
Fusion 21
-
-
Liv Charity
-
3,000
Routledge Foundation
-
1,000
Shepherd Street Trust
-
1,700
Prince Parry Trust
-
3,150
Just Giving Donations
-
1,966
FRC Employee Donation
-
50
The Blackmore
Foundation
-
170
Stronger Communities
-
10,000
The DWF Foundation
-
3,420
Bauer Radio
-
3,000
The Community
Foundation
-
1,000
Fundraising Cash TFB
-
1,249
Pilkington Charity
-
6,000
Rathbone
-
4,900
Frodsham University
-
175
Innovate UK
-
65,359
__
__
Total donations
-
136,139
__
__
5
Income from charitable activities
Unrestricted
funds
£
Provision of furniture/furniture
packages
16,856,049
Provision of bulky household waste
collection and recycling services
681,741
Charity shop sales
805
Provision of other recycling services
87,468
___
Total charitable activities
17,771,295
 Total
Unrestricted
Restricted
2024
funds
funds
£
£
£
30,000
-
7,500
-
-
5,000
-
-
25,000
3,000
-
-
1,000
-
-
1,700
-
-
3,150
-
-
1,966
-
-
50
-
-
170
-
-
10,000
-
-
3,420
-
-
3,000
-
-
1,000
-
-
1,249
-
-
6,000
-
-
4,900
-
-
175
-
-
65,359
-
-
__
_
_
136,139
-
37,500
__
_
_
Restricted
Total
funds
2024
£
£
-
16,856,049
-
681,741
-
805
-
87,468
_
_
-
17,771,295

 Total
2023
£
7,500
5,000
25,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
_
37,500
_
Total
2023
£
18,033,798
699,343
138,007
109,158
___
18,980,306
___

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

28

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

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
Total charitable activities expenditure		 Direct
costs
£
14,497,410
45,506
340,902
695,859
217,811
___
15,797,488
 Support
£
2,043,454
59
-
50,168
6,438
___
2,100,119
 Total
2024
£
16,541,073
45,565
340,902
746,027
224,249
___
17,897,606

Total expenditure on charitable activities was £17,832,919 (2023 - £18,890,081), of which £107,859 (2023 - £25,000) was restricted and £17,725,060 (2023 - £18,865,081) was unrestricted.

Provision of furniture/furniture packages
Charity shop sales
People development
Provision of bulky household waste collection
and recycling services
Provision of other recycling services
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

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
Support cost
£
Property cost
807,803
Staff costs
683,062
ICT costs
121,652
Depreciation
66,930
Bad debt
2,486
Governance
63,477
General office
298,044
__
2,043,454
__		 Provision of
bulky household
Charity
waste collection
shop
People
and recycling
sales
development
services
£
£
£
-
-
-
-
33
27,733
-
6
4,939
-
3
2,717
-
-
101
-
3
2,577
-
14
12,101
__
__
___
-
59
50,168
__
 Provision
of others
recycling
Total
Services
2024
£
£
-
807,803
3,558
714,386
634
127,231
349
69,999
13
2,600
331
66,388
1,553
311,712
___
_
6,438
2,100,119
_
_

29

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

7 Allocation of support costs (continued)

Provision of
furniture
and 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 household
Charity
waste collection
shop
People
and recycling
sales
development
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
Total
Services
2023
£
£
-
436,837
3,797
660,297
889
154,519
566
98,416
-
17
254
44,227
3,207
557,713
_
_
8,713
1,952,026

The Charity Shop closed in November 2022, with property costs remaining in the 2023-24 period.

8 Governance costs

Social audit
Audit and accountancy
Directors’ insurance		 2024
£
10,052
48,356
7,980
__
66,388
__		 2023
£
5,486
31,210
7,531
_
44,227
_

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

Staff costs:
Wages and salaries
Social Security costs
Pension costs		 Group
2024
£
4,230,837
328,890
167,877
__
4,727,604
 Group
2023
£
3,784,750
292,278
167,322
__
4,244,350
 Charity
2024
£
3,949,982
308,754
157,104
__
4,415,840
 Charity
2023
£
3,317,540
256,623
150,461
__
3,724,624

30

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

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

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		 2024
Number
1
2
-
1
 2023
Number
1
2
-
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 £412,938 (2023 - £433,207).

During the year, redundancy costs of £Nil (2023 - £27,950) were paid by the group. Redundancy costs of £Nil were paid by the charity (2023 - £22,829).

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
Management, Finance, Administration and ICT
End Furniture Poverty
Headcount at the end of the year		 2024
Number
78
-
6
11
28
2
__
125
__
125		 2023
Number
77
4
6
20
14
2
__
123
__
119

10 Trustee remuneration and related party transactions

No trustee received any remuneration during the year ended 31 March 2024 (2023 - £nil).

No travel costs were reimbursed to trustees in the year (2023 - £nil).

Related party transactions are shown in note 21 to the accounts.

31

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

11 Net incoming resources for the year

This is stated after charging:
Auditors’ remuneration:
•
Fees for audit of statutory financial statements
•
Fees for non-audit services
Depreciation and amortisation
Loss on disposal
Dilapidations on leasehold property
Operating lease rentals:
- All		 Group
2024
£
20,966
10,052
86,262
5,715
334,894
896,141
 Group
2023
£
20,210
5,487
120,866
5,836
-
913,703
 Charity
2024
£
14,966
10,052
73,570
5,715
334,894
792,296
 Charity
2023
£
18,710
5,486
104,377
-
-
774,248

12 Tangible fixed assets

Improvements
to leasehold
property
Group
£
Cost
At 1 April 2023
917,400
Additions
709
Disposals
-
_
At 31 March 2024
918,109
__
_Accumulated
depreciation
At 1 April 2023
855,253
Charge for the year
15,656
Disposals
-
_
At 31 March 2024
870,909
__
_Net book value
At 31 March 2024
47,200
__
At 31 March 2023
62,147
 Plant and
machinery
£
317,390
71,676
(5,796)
_
383,270
_
188,057
29,038
(81)
_
217,014
_
166,256
__
129,333
 Fixtures,
fittings and
equipment
£
297,084
2,256
-
_
299,340
_
274,919
13,035
-
_
287,954
_
11,386
__
22,165
 Assets
Computer
under
equipment
construction
£
£
510,716
242,173
-
256,214
(1,743)
-
_
_
508,973
498,387
_
_
446,461
-
28,533
-
-
-
_
_
474,994
-
_
_
33,979
498,387
__
__
64,255
242,173

 Total
£
2,284,763
330,855
(7,539)
_
2,608,079
_
1,764,690
86,262
(81)
_
1,850,871
_
757,208
__
520,073

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

32

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

12 Tangible fixed assets (continued)

Improvements
to leasehold
property
Charity
£
Cost
At 1 April 2023
896,501
Additions
709
Disposals
-
_
At 31 March 2024
897,210
__
_Accumulated
depreciation
At 1 April 2023
846,170
Charge for the year
13,492
Disposals
-
_
At 31 March 2024
859,662
__
_Net book value
At 31 March 2024
37,548
__
At 31 March 2023
50,331
__
All tangible fixed assets are used for or
Stock
Finished goods		 Fixtures,
Assets
Plant and
fittings and
Computer
under
machinery
equipment
equipment
construction
£
£
£
£
256,655
270,990
502,746
242,174
70,076
-
-
256,214
(5,796)
-
(1,743)
-
_
_
_
_
320,935
270,990
501,003
498,388
_
_
_
_
136,664
254,887
438,724
-
23,150
8,629
28,299
-
(81)
-
-
-
_
_
_
_
159,733
263,516
467,023
-
_
_
_
_
161,202
7,474
33,980
498,388
__
__
__
__
119,991
16,103
64,022
242,174
_
_
_
_
to support charitable purposes.
Group
Group
Charity
2024
2023
2024
£
£
£
1,078,434
1,202,650
1,078,434


 Total
£
2,169,066
326,999
(7,539)
_
2,488,526
_
1,676,445
73,570
(81)
_
1,749,934
_
738,592
__
492,621
__
Charity
2023
£
1,198,483

13 Stock

33

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

14
Debtors
Trade debtors
Prepayments
Amounts due from subsidiary
undertakings
Other debtors		 Group
2024
£
2,530,492
361,778
-
59,871
__
2,952,141
 Group
2023
£
3,448,654
310,849
-
46,948
__
3,806,451
 Charity
2024
£
2,276,060
352,213
419,433
60,107
__
3,107,813
 Charity
2023
£
3,304,603
292,542
147,627
44,041
__
3,788,813

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 (2023 - £Nil). The provision for bad and doubtful debt has been reduced by £135,400 in the year to £60,757 (2023 – increased by £193,774 to £196,157).

15 Investments

Cash held on deposit Group
2024
£
1,617
 Group
2023
£
182,925
 Charity
2024
£
1,617
 Charity
2023
£
182,925

The amount shown under cash held on deposit are available for instance access.

16 Creditors

Trade creditors
Other taxation and social security
Other creditors
CBILS loan
Accruals and deferred income		 Group
2024
£
1,144,179
321,665
27,763
125,000
682,469
__
2,301,076
 Group
Charity
Charity
2023
2024
2023
£
£
£
1,200,432
1,121,378
1,167,392
330,913
298,432
323,531
28,501
26,101
27,531
125,000
125,000
125,000
604,928
657,838
557,933
_
__
_
2,289,774
2,228,749
2,201,387
_

_

Included in accruals and deferred income is £2,550 (2023 - £2,550) of deferred income relating to the periodic delivery of refurbished computers to the NHS. In the year no amounts have been released or deferred.

34

Furniture Resource Centre Limited

Notes to the Accounts for the year ended 31 March 2024 (continued)

16 Creditors (continued)

Loan due after more than one year
CBILS loan due in 1-2 years
CBILS loan due in 2-5 years
Creditors due in more than one year		 Group
2024
£
93,750
-
__
93,750
 Group
Charity
Charity
2023
2024
2023
£
£
£
125,000
93,750
125,000
93,750
-
93,750
_
__
_
218,750
93,750
218,750
_

_

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.

17 Funds

Group
Restricted funds
Mattress Machine
Time for Bed
Total restricted funds
Unrestricted funds
Total funds		 Balance at
1 April
2023
£
-
12,500
_
12,500
_
3,678,838
___
3,691,338
 Movement in
resources
Incoming
Outgoing
£
£
65,359
(65,359)
70,780
(42,500)
_
_
136,139
(107,859)
_
_
17,570,468
(17,725,060)
_
_
17,706,607
(17,832,919)

 Balance at
31 March
2024
£
-
40,780
___
40,780
___
3,524,246
___
3,565,026

35

Furniture Resource Centre Limited

Notes to the Accounts for the year ended 31 March 2024 (continued)

17 Funds (continued)

This year saw the official launch of ‘Time for Bed’ providing beds to children between the ages of 0-18 years from across Merseyside who do not have a bed of their own funded through donations, grants, and corporate partnerships. Donors to the campaign were:

A further grant was received from Innovate UK, restricted in relation to the development of mattress cleaning machinery.

Charity
Restricted funds
Time for Bed
Mattress Machine
Total restricted funds
Unrestricted funds
Total funds		 Balance at
1 April
2023
£
12,500
-
_
12,500
_
3,651,143
___
3,663,643
 Movement in
resources
Incoming
Outgoing
£
£
70,780
(42,500)
65,359
(65,359)
_
_
136,139
(107,859)
_
_
16,996,076
(16,945,334)
_
_
17,132,215
(17,053,193)

 Balance at
31 March
2024
£
40,780
-
___
40,780
___
3,701,885
___
3,742,665

Movement in funds for the year ended 31 March 2023 are shown below.

36

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

17 Funds (continued)

Group
Restricted funds
Fusion-21
Time for Bed
Total restricted funds
Unrestricted funds
Total funds		 Balance at
1 April
2022
£
-
-
_
-
_
3,495,470
___
3,495,470
 Movement in
resources
Incoming
Outgoing
£
£
25,000
(25,000)
12,500
-
_
_
37,500
(25,000)
_
_
19,048,449
(18,865,081)
_
_
19,085,949
(18,890,081)

 Balance at
31 March
2023
£
-
12,500
___
12,500
___
3,678,838
___
3,691,338

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

Charity
Restricted funds
Fusion-21
Time for Bed
Total restricted funds
Unrestricted funds
Total funds		 Balance at
1 April
2022
£
-
-
_
-
_
3,467,313
___
3,467,313
 Movement in
resources
Incoming
Outgoing
£
£
25,000
(25,000)
12,500
-
_
_
37,500
(25,000)
_
_
18,456,800
(18,272,970)
_
_
18,494,300
(18,297,970)

 Balance at
31 March
2023
£
-
12,500
___
12,500
___
3,651,143
___
3,663,643

37

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

18 Analysis of net assets between funds

Unrestricted
Group
£
Fixed assets
757,208
Net current assets
2,860,788
Non-current liabilities
(93,750)
__
Net assets
3,524,246
__
Unrestricted
Charity
£
Fixed assets
738,592
Net current assets
3,057,043
Non-current liabilities
(93,750)
__
Net assets
3,701,885
 Restricted
£
-
40,780
-
__
40,780
__
Restricted
£
-
40,780
-
__
40,780
 2024
Total
Unrestricted
£
£
757,208
520,073
2,901,568
3,377,515
(93,750)
(218,750)
__
_
3,565,026
3,678,838
__
_
2024
Total
Unrestricted
£
£
738,592
492,621
3,097,823
3,377,272
(93,750)
(218,750)
__
__
3,742,665
3,651,143

 Restricted
£
-
12,500
-
_
12,500
_
Restricted
£
-
12,500
-
__
12,500
 2023
Total
£
520,073
3,390,015
(218,750)
_
3,691,338
_
2023
Total
£
492,621
3,389,772
(218,750)
__
3,663,643

19 Operating lease commitments

At 31 March 2024, the commitments under non-cancellable operating leases are as follows:

Group
Expiry within:
Under one year
Two to five years

Over five years

Charity
Expiry within:
Under one year
Two to five years
Over five years		 Land and
buildings
£
239,113
1,395,735
1,694,063
__
3,328,911
__
Land and
buildings
£
195,720
1,270,548
1,694,063
__
3,160,331
 Other
£
189,642
455,498
-
__
645,140
__
Other
£
186,132
443,505
-
__
629,637
 Total
2024
£
428,755
1,851,233
1,694,063
__
3,974,051
__
Total
2024
£
381,852
1,714,053
1,694,063
__
3,789,968
 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

38

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

20 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 £167,877 (2023 - £167,322). The creditor at year was £26,664 (2023 - £24,230) and is included in creditors.

For the charity, the annual contributions under this scheme were £157,104 (2023 - £150,461). The creditor at year was £25,273 (2023 - £22,854) and is included in other creditors.

21 Related parties

Bulky Bob’s

In the year ended 31 March 2024, 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: £8,458 (2023 - £20,242) Recharge for shared services: £51,251 (2023 - £79,520) Recharge for premises costs: £106,423 (2023 - £86,973) Recharge for logistics costs: £36,040 (2023 - £51,204) Recharge for general costs: £44,055 (2023 - £37,300) Recharge for staff training costs: £1,618 (2023 - £6,329) Donation: £Nil (2023 - £330,000) Transfer of refurbished bed bases - £Nil (2023 - £41,655)

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

Recharge for staff costs: £77,585 (2023 - £116,121) Recharge for logistics services: £8,296 (2023 - £9,390) Recharge for general costs: £(4,428) (2023 - £34,481) Mattress machine income: £Nil (2023 - £27,828)

The amount owed by Bulky Bob’s to Furniture Resource Centre Limited at 31 March 2024 was £231,213 (2023 - £11,705).

Bulky Bob’s for Business

In the year ended 31 March. 2024, 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.

39

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

21 Related parties (continued)

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

Recharge for staff costs: £41,976 (2023 - £56,455) Recharge for shared services: £13,315 (2023 - £19,427) Recharge for logistics costs: £3,834 (2023 - £5,566) Recharge for general costs: £16,274 (2023 - £13,286) Recharge for staff training costs: £Nil (2023 - £390) Donation: £Nil (2023 - £25,000) Recharge for waste disposal costs: £Nil (2023 - £50,004)

Transactions from Bulky Bob's For Business to Furniture Resource Centre Limited

Recharge for logistics costs: £Nil (2023 - £3,415) Recharge for staff costs: £505 (2023 - £2,245) Interest on intercompany borrowing £6,831 (2023 - £6,100)

The amount owed by Bulky Bob’s to Furniture Resource Centre Limited at 31 March 2024 was £188,220 (2023 - £135,922).

During the year, sales of £Nil (2023 - £929) were made to Regenda Homes, an organisation with a director who is also a trustee of the charity.

22 Commitments

There were capital commitments at 31 March 2024 of £510,188 (2023 - £75,198).

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

Net incoming/(outgoing) resources for the year
Depreciation and amortisation
Loss on disposal of assets
Finance income
Interest charge
Decrease/(Increase) in stock
Decrease/(Increase) in debtors
Increase/(decrease) in creditors
Cash generated from operations		 2024
£
(126,312)
86,262
5,715
(6,952)
20,698
124,216
854,310
11,706
__
969,643
__		 2023
£
195,868
120,866
5,836
(446)
24,493
(11,727)
(230,920)
(264,186)
_
(160,216)
_

40

Furniture Resource Centre Limited

Notes to the Accounts

for the year ended 31 March 2024 (continued)

24
Net debt reconciliation
Cash at bank and in hand
Bank loans
Hire Purchase loan
Net cash		 1 April
2023
Cash flows
£
£
487,763
684,028
(343,750)
144,325
(317)
20
__
__
143,696
828,373

 Interest
charge
£
(1,339)
(19,325)
(20)
__
(20,684)
 31 March
2024
£
1,170,452
(218,750)
(317)
__
951,385

25 Ultimate controlling party

Furniture Resource Centre Limited has no controlling party.

26 Comparative SOFA information

Total
Unrestricted
funds
£
Income and endowments from:
Donations and legacies
-
Charitable activities:
18,980,306
Investments
446
Other
67,697
_

Total
19,048,449
_
Expenditure on:
Charitable activities
18,865,081
_
Total resources expended
18,865,081
_
Net incoming resources
183,368
Balance brought forward at 1 April
3,495,470
_
Balances carried forward at 31 March
3,678,838
_		 Total
Restricted
funds
£
37,500
-
-
-
_
37,500
_
25,000
_
25,000
_
12,500
-
_
12,500
_		 Total
Funds
31 March
2023
£
37,500
18,980,306
446
67,697
_
19,085,949
_
18,890,081
_
18,890,081
_
195,868
3,495,470
_
3,691,338
_

41