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2023-03-31-accounts

Charity registration number NIC102419

Company registration number NI026217 (Northern Ireland)

INSPIRE BUSINESS CENTRE LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

INSPIRE BUSINESS CENTRE LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr D Drysdale Ms S Davidson Mr N Mills Mr D Wright Mr A Weir Mr A Wilson Ms J Barkley Miss B Creed (Appointed 5 July 2022) Mrs A Osborne (Appointed 17 April 2023) Mrs T Hughes (Appointed 17 April 2023) Charity number NIC102419 Company number NI026217 Principal address Inspire Business Park Carrowreagh Road Dundonald Belfast BT16 1QT Registered office Inspire Business Park Carrowreagh Road Dundonald Belfast BT16 1QT Auditor GMcG LISBURN Century House 40 Crescent Business Park Lisburn BT28 2GN Bankers AIB 11-15 Donegall Square North Belfast BT1 5GB

INSPIRE BUSINESS CENTRE LTD

CONTENTS

Page
Trustees' report 1 - 7
Independent auditor's report 8 - 13
Statement of financial activities 14
Statement of financial position 15
Statement of cash flows 16
Notes to the financial statements 17 - 25

INSPIRE BUSINESS CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Inspire Business Centre Ltd was founded in January 1992 to be the Local Enterprise Agency for the Castlereagh Borough Council area. It is a private company limited by guarantee.

The company is a profit making but not for profit taking Local Enterprise Agency based in Dundonald, Northern Ireland. Inspire Business Centre Ltd ("Inspire") operates as a business park offering warehouse, workshop and office accommodation and related services to tenants’ onsite.

Inspire Business Centre currently comprises 100,000 square feet of workspace with 73 companies onsite.

The board of directors comprises business and professional people serving in a voluntary capacity, who meet regularly to review and guide the company’s activities and progress. Inspire aims to promote the creation of new small businesses within all of the area which it serves, stimulating economic development within the Borough. It will also assist the survival and growth of existing small businesses through the sourcing and provision of advice, counselling and informed networking.

The company is also a member of Enterprise NI which is the association of enterprise agencies in Northern Ireland. Enterprise NI aims to improve the provision of support to start-up and established micro businesses in Northern Ireland by providing a cohesive and collective approach and by working closely with other partner organisations and government agencies.

Through its membership of Enterprise NI, Inspire Business Centre is able to source a portfolio of business development programmes to support SMEs and the community and voluntary sector.

Inspire Business Centre Ltd has a vision focused on” connecting communities to the business sector” with a specific mission to “provide the highest quality and affordable premises to businesses and to support, inspire and connect young people to bespoke and sustainable employment opportunities.

Inspire Business Centre Ltd is also a member of Social Enterprise NI, and Development Trust NI.

The company is governed by its memorandum and articles. The Board of Directors meets regularly to oversee the company's management and operations. The board employs a Chief Executive, who is responsible for the day-today operations and leadership. In addition, there are three sub committees which report to the main board:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

INSPIRE BUSINESS CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Public benefit and significant activities

Inspire Business Centre Ltd provides to its markets, beneficiaries and customers, enterprise development services such as the creation of training and employment opportunities by the provision of business incubation workspace, buildings and or land for use on favorable terms to facilitate seamless transition from economic inactivity into either self-employment or employment opportunities.

The identification, signposting and implementation of support mechanisms to facilitate opportunities for transition into self-employment. The relief of unemployment and or economic inactivity, which includes assistance and support to find employment opportunities, the advancement of education, training, and or, retraining particularly among unemployed people in the Castlereagh area, and providing unemployed people with work experience.

Inspire Business Centre Ltd has performed effectively and efficiently achieving its strategic objectives since its incorporation, led by a Board of Directors and executive team.

Social investment & grant making

The provision of financial assistance and business, technical assistance and consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help in setting up their own business or to existing businesses.

Bring together in conference and collaboration representatives of corporate and voluntary organisation’s, government departments, statutory authorities and individuals, in order to facilitate the effective and efficient dissemination of the companies’ objectives for the good and benefit of urban regeneration as the public benefit within the company's sphere of influence.

Achievements and performance

I am pleased to report continued improvement in Inspire Business Centre Ltd’s performance over the 2022/23 financial year, with further important operational and physical improvements being completed, as well as a very high average occupancy rate being achieved. Much of this was as a result of pro-active and well-focused asset management allied to clear a direction of travel for the business.

Inspire Business Centre has remained active in its’ core functions and in particular;

INSPIRE BUSINESS CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Inspire Business Centre has delivered a robust and largely successful strategy during the financial year 2022–2023, and several significant operational improvements have been made which have successfully reduced overheads and created efficiencies.

The Chief Executive has continued to build and develop excellent working relationships with the board and external stakeholders. This has resulted in continued demonstrable improvement in the management of the property assets, as well as the development of relationships with community groups and other local stakeholders.

INSPIRE BUSINESS CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

At 31 March 2023 the balance of unrestricted reserves was £4,847,107 (2022 - £4,146,107), of which £76,163 (2022 - £56,063) has been designated by the Board at the year end.

Restricted funds are restricted for the purpose specified in letters of offer provided by the funding bodies. At 31 March 2023 the balance of restricted funds was £Nil (2022 - £Nil) .

The trustees consider the overall funds available to the charity as adequate to meet their working capital requirements.

Plans for future periods

Our mission is “to serve the community as a sustainable centre of excellence for entrepreneurship, enterprise and employment.” The Inspire mission gives clarity to our core purpose as a social enterprise and charity that aims to serve the community through business development and job creation, leading to greater prosperity for all.

In terms of where we see the company in three to five years’ time, we have set our sights on ambitious growth. We see a company emerging that is bigger, better and more successful than it is today. This will primarily be measured in terms of businesses started and expanded and the jobs created.

Our long-term vision for success is that we will:

INSPIRE BUSINESS CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management

Inspire Business Centre’s governing documents are a unique combination of our memorandum and Articles of Association, Charity Commission verified public benefit statements and governance protocols and procedures which are underpinned by the organisation’s mission, vision and values. The table below provides a more detailed explanation of the attitude and behaviour that our customers and stakeholders can expect from us, as a board and as employees.

Values Which means that…
Integrity ·
We will always act in a trustworthy and responsible manner
·
We will be reliable and fair in the way we carry out our business
·
We will place a high value on the importance of confidentiality
·
We will always treat people with dignity, respect and consideration.
Passion ·
We will approach our work with passion and energy
·
We will be forward thinking and continuously seeking new
opportunities to help develop and grow
Openness ·
We will be open and accountable to stakeholders
·
We will be open to risk in a transparent, responsible and managed
way
·
We will be open to collaborative working with others, both nationally
and internationally.
Socially
Responsible		 ·
We will take sustainability into account in how we use our resources
·
We will actively seek opportunities to create wider public benefit.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr D Drysdale Ms S Davidson Mr N Mills Mr S Martin (Resigned 8 June 2022) Mr D Wright Mr A Weir Mr R Johnston (Resigned 14 June 2022) Mr A Wilson Ms J Barkley Ms G Gibson (Appointed 11 April 2022 and resigned 15 March 2023) Miss B Creed (Appointed 5 July 2022) Mrs A Osborne (Appointed 17 April 2023) Mrs T Hughes (Appointed 17 April 2023)

Inspire Business Centre’s trustee appointment and resignation are informed by and detailed within our active governance protocols and procedures manual which are fully compliant with our Memorandum and Articles of Association.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

INSPIRE BUSINESS CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure

Inspire Business Centre’s organisation structure is based on a Board of Directors, comprising ten business and professional people serving in a voluntary capacity, and who meet regularly to review and guide the company’s activities and progress. Inspire also employs a Chief Executive, a Finance & Administration Manager, and a parttime Administration Officer.

Financial remuneration

Inspire Business Centre’s financial remuneration policy is informed by and detailed within our active governance protocols and procedures manual which are fully compliant with our Memorandum and Articles of Association.

Risk Management

Inspire Business Centre’s trustee risk management is informed by and detailed within our active governance protocols and procedures manual which are fully compliant with our Memorandum and Articles of Association.

Statement of trustees' responsibilities

The trustees, who are also the directors of Inspire Business Centre Ltd for the purpose of company law, are responsible for preparing the trustees report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

GMcG LISBURN were appointed as auditor to the company and a resolution proposing that they be re-appointed will be put at a General Meeting.

INSPIRE BUSINESS CENTRE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exceptions.

The trustees' report was approved by the Board of Trustees.

Mr D Drysdale

Trustee

30 August 2023

INSPIRE BUSINESS CENTRE LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INSPIRE BUSINESS CENTRE LTD

Opinion

We have audited the financial statements of Inspire Business Centre Ltd (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows 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 charitable company 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 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.

INSPIRE BUSINESS CENTRE LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INSPIRE BUSINESS CENTRE LTD

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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 course of 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

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INSPIRE BUSINESS CENTRE LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INSPIRE BUSINESS CENTRE LTD

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

INSPIRE BUSINESS CENTRE LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INSPIRE BUSINESS CENTRE LTD

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the charitable company for fraud and identified the greatest potential for fraud in income recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

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 may be fundamental to the company’s ability to operate or to avoid a material penalty.

INSPIRE BUSINESS CENTRE LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INSPIRE BUSINESS CENTRE LTD

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they 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 noncompliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

INSPIRE BUSINESS CENTRE LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INSPIRE BUSINESS CENTRE LTD

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.

Mr Stephen Houston FCA (Senior Statutory Auditor) for and on behalf of GMcG LISBURN

30 August 2023

Chartered Accountants Statutory Auditor

Century House 40 Crescent Business Park Lisburn BT28 2GN

INSPIRE BUSINESS CENTRE LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

**Unrestricted ** Unrestricted
funds funds
2023 2022
Notes £ £
Income and endowments from:
Charitable activities 3 609,064 580,977
Investments 4 354 -
Other income 5 37,521 25,332
Total income 646,939 606,309
Expenditure on:
Charitable activities 6 511,194 489,749
Other expenditure 9 9,745 -
Total expenditure 520,939 489,749
Net incoming resources 126,000 116,560
Other recognised gains and losses
Revaluation of tangible fixed assets 575,000 -
Net movement in funds 701,000 116,560
Fund balances at 1 April 2022 4,146,107 4,029,547
Fund balances at 31 March 2023 4,847,107 4,146,107

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

INSPIRE BUSINESS CENTRE LTD

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
14
Net assets
Income funds
Unrestricted funds
Designated funds
16
General unrestricted funds
Revaluation reserve		 2023
£
£
4,607,033
18,692
325,315
344,007
(103,933)
240,074
4,847,107
-
4,847,107
76,163
2,810,624
1,960,320
4,847,107
4,847,107		 2022
£
£
4,164,838
16,385
109,960
126,345
(129,395)
(3,050)
4,161,788
(15,681)
4,146,107
55,063
2,295,423
1,795,621
4,146,107
4,146,107

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees and authorised for issue on 30 August 2023 and signed on its belafs by:

Mr D Drysdale Mr A Wilson Trustee Trustee

Company registration number NI026217

INSPIRE BUSINESS CENTRE LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
19
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(28,393)
354
(61,673)		 2022
£
£
£
305,067
251,528
(57,654)
-
(28,039)
(57,654)
(142,008)
(61,673)
(142,008)
215,355
51,866
109,960
58,094
325,315
109,960

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Inspire Business Centre Ltd is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Inspire Business Park, Carrowreagh Road, Dundonald, Belfast, BT16 1QT.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Incoming resources from charitable activities comprises licence fee income, programme income, administrative services income and consultancy.

Income is deferred when it does not meet the criteria for recognition as incoming resources in the Statement of Financial Activities, as entitlement to the incoming resource does not exist at the balance sheet date.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under one of the following headings: Costs of raising funds, Expenditure on charitable activities and Other expenditure.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, depreciation costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at the office. Office costs, depreciation costs, governance costs and payroll costs are allocated to charitable activities based on percentage of turnover.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings 2% straight line Plant and equipment 15% reducing balance Fixtures and fittings 15% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Leasehold land and buildings, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.7 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements (Continued)

Key sources of estimation uncertainty

Leasehold land and buildings

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value. Fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate. Valuation involves some estimation uncertainty but is based on periodic advice from expert valuers.

Restricted and unrestricted funds

Judgement are made in relation to allocation of income and expenditure to restricted and unrestricted funds. The trustees consider it appropriate to allocate these funds based on donations received.

3 Charitable activities

Charitable Charitable
Income Income
2023 2022
£ £
Rental income 494,205 455,565
Services charges 35,777 36,814
Recharges to tenants 79,082 76,108
Grants receivable - 12,490
609,064 580,977

4 Investments

Unrestricted Total
funds
2023 2022
£ £
Interest receivable 354 -

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Other income

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Other income 13,744 9
Energy rebates 23,777 25,323
37,521 25,332

6 Charitable activities

Community and economic development
Staff costs
Depreciation and impairment
Security expenses
Waste and pallet removal
Repairs and maintenance
Programme expenses
Telephone and fax
Printing, postage and stationery
Motor vehicle leasing
Catering
Movement in bad debts
Rates
Heat & light
Insurance
Cleaning & office expenses
Travel & subsistence
Advertising & promotion
Legal & professional
Bank charges
Interest payable
Audit fees		 2023
£
135,463
151,453
1,691
19,840
28,386
-
9,868
13,507
5,224
984
6,491
1,804
52,311
13,261
20,893
56
3,392
40,575
915
980
4,100
511,194		 2022
£
133,354
132,226
30,327
14,237
20,986
6,362
11,551
21,869
4,863
262
-
7,786
31,531
11,570
17,273
11
1,561
36,776
921
2,983
3,300
489,749

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8 Employees

The average monthly number of employees during the year was:

2023
Number
3
Employment costs
2023
£
Wages and salaries
127,788
Other pension costs
7,675
135,463
The number of employees whose annual remuneration was more than £60,000
is as follows:
2023
Number
£60,000 - £70,000
1
9
Other expenditure
Unrestricted
funds
2023
£
Net loss on disposal of tangible fixed assets
9,745
9,745		 2022
Number
3
2022
£
126,050
7,304
133,354
2022
Number
-
Total
2022
£
-
-

10 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

11
Tangible fixed assets
Cost or valuation
At 1 April 2022
Additions
Disposals
Revaluation
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
Eliminated in respect of disposals
Revaluation
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Leasehold
land and
buildings
£
4,250,000
-
-
150,000
4,400,000
425,000
88,000
-
(425,000)
88,000
4,312,000
3,825,000		 Plant and
equipment
Fixtures and
fittings
£
£
515,743
319,902
1,524
26,869
(142,498)
(155,642)
-
-
374,769
191,129
263,197
232,610
36,643
26,810
(132,753)
(155,642)
-
-
167,087
103,778
207,682
87,351
252,546
87,292		 Total
£
5,085,645
28,393
(298,140)
150,000
4,965,898
920,807
151,453
(288,395)
(425,000)
358,865
4,607,033
4,164,838

Leasehold land and buildings were revalued at 31 March 2023 on an open market basis by the directors. The valuation takes into consideration valuation carried out by Cushman & Wakefield, independent valuers not connected with the charitable company on the basis of market value as at 31 March 2022.

12 Debtors

Amounts falling due within one year:
Trade debtors
Prepayments and accrued income		 2023
£
3,461
15,231
18,692		 2022
£
961
15,424
16,385

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13
Creditors: amounts falling due within one year
Notes
Bank loans
15
Other taxation and social security
Payments received on account
Trade creditors
Other creditors
Accruals and deferred income
14
Creditors: amounts falling due after more than one year
Notes
Bank loans
15
15
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 2023
£
-
20,785
64,011
14,750
137
4,250
103,933
2023
£
-
2023
£
-
-
-		 2022
£
45,992
19,549
49,571
10,850
133
3,300
129,395
2022
£
15,681
2022
£
61,673
45,992
15,681

16 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement Movement
in funds in funds
Balance at Incoming Balance at Incoming
Balance at
1 April 2021 resources 1 April 2022 resources 31 March 2023
£ £ £ £ £
Designated tenants bond reserve 46,251 8,812 55,063 21,100 76,163
46,251 8,812 55,063 21,100 76,163

This fund represents bonds held and received on behalf of existing tenants. In the prior year the balance of £55,063 had been included in general reserves. The directors have taken the decision this year to separately disclose the balance of bonds held.

INSPIRE BUSINESS CENTRE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

17 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2023
£
4,274
3,586
7,860		 2022
£
4,710
7,860
12,570

18 Related party transactions

Mr D Drysdale, trustee of Inspire Business Centre Ltd, provided professional services to the charity in the year at a cost of £1,673 (2022 - £5,440)

19 Cash generated from operations 2023 2022
£ £
Surplus for the year 126,000 116,560
Adjustments for:
Investment income recognised in statement of financial activities (354) -
Loss on disposal of tangible fixed assets 9,745 -
Depreciation and impairment of tangible fixed assets 151,453 132,226
Movements in working capital:
(Increase)/decrease in debtors (2,307) 10,883
Increase/(decrease) in creditors 20,530 (8,141)
Cash generated from operations 305,067 251,528
20 Analysis of changes in net funds
At 1 April 2022 Cash flowsAt 31 March 2023
£ £ £
Cash at bank and in hand 109,960 215,355 325,315
Loans falling due within one year (45,992) 45,992 -
Loans falling due after more than one year (15,681) 15,681 -
48,287 277,028 325,315