Qraigavon Industrial Development Organisatioll (a company limited by guamtee) Reference and administrative details of the charity Trustees, direetors and members Mr J Blane (Chainnan) Nfr J E Moore (appointed to Vice Chair 27 October 2022) Mr M Bell Mr L Foye (resi8n¢d 23 June 2023) Mr J P Hagan LLB Mr A Hatch Mrs A Mawhinney Mr K O'connor (resigned 27 May 2023) Mr5 E Mcclurg OBE Dr C Neville Mr G Anderson (appointed 25 August 2022) Mr J Anderson (appointed 19 May 2022) Senior management Registered and prineipal office Cara Dallat (Chief Executive Officer) Concepta Heagney (Client Support Mana8¢r) Kirsty Watson (Project Manager) P CIDO Innovation C¢ntr¢ 73 Charlestown Road Port8down Co Armagh BT63 5PP Cbarity number N1017745 XR84334 NIC102848 Bankers Solleitors Ulst¢r Bank Limited 20 High Street Portadown Co Arn)agh BT62 IYB Thompson Mit¢hell 12-14 M8ndeville Street PortadowD Co Amiagh BT62 3NZ Independent audltors Wylie Ruddell Chartered Accountants & Ststutory Auditor5 Unit 63 Annagh Business Centre 2 Loughgall Road Arnlagh BT617NH Craigavon Industrial Development Organisation (a compally limited by guarantee) Report of the trustees for the year ended 31 March 2023 The Tn￿e¢s, who are also the directots of the company for the purpose of the Companies Act 2006. prescnt their iewrt with th¢ financial statements of the group and parent company for the year ended 3 l March 2023. The information with respect to the trustees, senior managcmcnt and advisers set out on pag¢ I fornis part of this report. The rulancial staternents cornply with current statutory requirements including the ChaTities Act (Northern Ireland) 2008 and subswuent amendments, The Charities (Accounts and Reports) Regulations (Northern Ireland) 2015. CompanTes Act 2006, the chartty's Trust tkcd, Accounting and Reporting by Charitics: Statement of Recomm¢nd¢d Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102 {i$sued in October 2019) applicable in the UK and Republic of Ireland. Our purpose and ACtlvltl&4 Craigavon Industrial Development Organisation Cr1D￿) is committed to encouraging and a5sistiDg business enterprise for the benefit of thc local economy. The mission Statement of the company is as follows". 'To encournge innovation. in¢ubat¢ and accelernte local business for the good amd growth of the local e￿noMY., INBtZ (Nl) Ltd is currently dorniant. CIDO (Management) Limited leases units within the Enterprise Centre at Carn Industrial Estate, Portadown which are owned by its par¢nt company. Publie benefit statement As well as having a g¢ner81 charitsble purpose. the specific purposes of Clt)O are the promotion for the public benefrt of urban and nwal regeneration within the Borough of CTaigavon and its environs (the "arca of benefit"). bein8 an area of Social and economic deprivation, by all or any of the following means: (i) The relief of poverty in such ways as may be thought fit. The rclicf of unemployment in such ways as may be thought fiL including ￿sIStance to find employment; Th¢ advanc¢m¢nt of edu¢aiion. training or retraintng, parti¢ularly among unemployed people, and providing unemployed people with work experience; The provision of financial assist8nce, technical assistan¢¢ or business advice or consultancy in order to provide training and ernployment opportunit7e$ for unernployed people in cases of financial or oth¢r charitable need through help: (i) in s¢tting up their own business, or (li) to existin8 businesses: To improv¢ employment by the provision of workspace, buildings andlor land for use on favourable tern)s; The protection or conservation of the environment. (iii) (iv) (v) (vi) The public benefits that flow from the purpose of urban and rurnl Tegeneration are: (i) The creation of employment, training and work experience opportunities for residents living in economically and socially deprived area5 and consequently a reduction in poverty, unemployment and hardship. leading to a better quality of life for the beneficiaries and consequent improvcments in health and well-being. Enhanced knowledge about setting up and running small businesses resultin8 in increased Icvcls of self- employment and better prospects of sustainable development. Increased levels of knowledge and transferable vocattonal skills among employees I work experience trainees. assisting in the creation of a more edUC￿ed, skilled and qualified community: A greater sense among the beneficiaries of more fulfilled and p￿￿K)SefUl lives. resulting in a saftr. moT¢ Stable and cohesive community" Increased potential for innovation and progress. creating a more dynarnic and prosperous society: Enhanced awareness and adoption of technique& processes and practices that reduce fossil fvel consumption. promote energy efficienry and reduce Consumption of non-rccyclable materia15, Icading to reduced harn) to the environment and healthier and more pleasurable surroundings. (li) (iii) (iv) (v) (vi) Craigavon Industrial Development Organisation (a Company limited by guarantee) Report of the trustees for the year ended 31 March 2023 (Continued) These bcnefits can be evidenced in records kept by various agcneies of the numbcr of jobs and work experience opportunities Greated and the numbers of those who have successfully completed training courscs. Evidence can also be found in independent evaluations of the activities of enterprise agen¢i¢5 ￿rIed out by fundiJ)g bodi¢s community suryeys of living standards and attiiudes and in environm¢ntsl re5carth finding& Some private benefit is obtained by th¢ own¢r5 of small businesses who rent units on favouTable term5, but this is ancillary to th¢ main pU￿oSe and is greatly outweighed by the gain5 in public ben¢fiL No hami arises from th¢5e purposes. Our vision is that Major social change in Northern Ireland is gready assI￿ed through investing in and developing a growing private sector economy. When CIDO was forn)ed many years ago, it was in the face of unprecedented economic and political ditriculty, and while politically the challenge5 are different today for our regio￿ cwiomically the challenges ahead are equally significant. We do not fund our not for profit activities through donatioD& rnther we seek to generate funds from our commercial operations and deploy thos¢ fijnds for our charitable purposes. AII CIDO'S trnstees are voluntsry and r¢¢eiv¢ no fees. Aehievements and performance ineluding fmancial revlew The company is limited by guarnnttt and 8ov¢rned by its Trust Deed and Memorandum and Articlc5 of Association. It is recognised as a charity by HM Revenue & Customs. The company was grdnted charitable status with effect from 28 April 2005. The company successfully completed registration with Charity Commission Northern Ireland on 19 November 2015, The Company has two wholly owned non-charitable subsidiarie4 tNBIZ (NL) Ltd and CIDO (Management) Limitc4 colleclivcly referred to hereafter in this report &8 CIDO. The report and con501idated fmancial swemeThts for the ended 31 March 2023 rcl&ie to the total activities of the above legal entities. R*sults and perfonnanee The net in¢oming r¢$ourc¢ for lh¢ group for the year is £95,994 (2022: £137,823) and total reserves at 31 March 2023 were £3,387,482 (2022: £3,291.488). Restricted reserves ioial £1.573.244 (2002.. £1.587255). The trusrees consider the results of th¢ clwitable ¢ompany for the Ye￿ and th¢ fmancial position of the Clwity at the year to be satisfactory. tNBIZ (ND Ltd The charitable cornpany's wholly-owned trading subsidiary ¢WTies out non-charitsble trading activities for the charity. Inbiz (NI) Ltd has not CaTried out any noll-charitable trading activiti¢s since 2017 and has been dotmant throughout the previous 6 financial year5. CIDO (Management) Llmfted The Charitable company's wholtywowned trading subsidiary carries out non-charitable trading activities for the charity. It 15 the practice of the company to transfer all its profits to the Charity. During the year the company made gift aid payments of £1 01.960 (2022: £88,474) to the charity. The main activities of the company and group are unchanged from last year. and arn principally the promotion of industrial development in the CTaigavon area through the provision of advice and assislance to firnis and persons including the provision of bu5inc3s training and busin￿ assistance for the long telm unemployed and the letting of units at the Enterprise Centres in Crnigayon and Lurgan. CIDO has also engaged in the delivery of a number of business development programmes and initiative5 in Northern treland. Units in Centre l are let by the company's subsidiary, CIDO (Management) Lifftited. while units in Centre 11, Centre Ill and the 12 CItK) tnnovation Centr¢ are let directly by the company. CIDO provide5, on a client basis, free advire and consulting and assistan¢e to those who are Un￿P10YCd and wish to ￿)sider the ￿lf4mplOYment option, a5 well as ¢ntrepreneur5 needing to grow their busines Craigavon Industrial Development Organisation (a company limited by guarantee) Report of the trustees for the year ended 31 March 2023 (CODtinued) The business opcration5 Ca￿led out by CIDO clients at the Ccntrcs are varied and are broken down as follows: Sector No. of Businesses 202112022 ee Numbers 202112022 13 342 34 22 202212023 io 55 2020ll021 202212023 18 350 19 21 2020f2021 24 352 42 25 Manufacturin Service IT Retail Wholesale Food TOTAL 54 53 10 130 $43 108 524 125 571 87 88 The trustees can report that prom activities have wfornicd reasonably well over the I￿ year and have maintained occupancy levels, with average occupancy at 99.05Q/o (2022: 99 /0) in Centres l - Ill. The 12 CItX) Innovation Centre had an occupan¢y level of l OOYO for 2023 (2022: 100 /•) and the new 12 Pods had an occupancy level of 29.170/0 over 4 months. It is important to note that a considerable portion of th¢ Innovation Centre continues to be leased to a single tenant. Bu51nus envlronrnent The local romm¢rGial property market remains highly ￿MPetItive. Attention to dctail has been given to both the pricing and the presentation of Centres I, Il, 111 & 12 CIDO Innovation Centre. This has resulted in maintsincd occupancy leve15 across all sites and the truste¢s hope to 5UStain this p)SitIVC P05itiOTb. despite the Covid pandemi4 the Northern Ireland Protocol generating issues with supply chains and the increasing cost of doing business. The contracts for the delivery of progrnmmes have recently been retendered and it 15 expected that CIDO'S involvement will chan8¢. The trustees and management team are actively seeking alternative Tevenu¢ streams includin8 all¢rnative programm¢s. Key performanee indieatori YIE March 2023 (Actual) YIE March 2022 (Actual) y￿ March 2021 {Actual) Propety occupancy levels: Centre I Centre 11 Centre Ill Innovation Centye Pods IOO•/• 99•A 99•A 11)OO/• 9W 99 98Yo IOOO/o NIA 96Y• IOOOh loo% IOOYO NIA Unfunded Business Support During the year CIDO undertook a range of activities fvnded from its own resource4 as follow5: In 202212023 CIDO continued to deliver a series of serninars and events to small businesses in the Crnigavon and wider area. Business owncrs are consulted to ensure the 5eminats delivered arc lopical and add value. The total attendecs to seminars and ev¢nts in 2022123 were 128 (2021r2022: 62 attendee5, 2020n021". 58 attendees). Craigavon Industrial Development Organisation (a company limited by guarantee) Report of the trustees for the year ended 31 March 2023 (continued) The seminars and events deli￿red in 2022123 were as follows". Month April 2022 May 2022 Worksho s l Events Prcsentation Work5hop- Onlin¢ Ev¢nr Attendees 24 Bookkeeping with Lisa Moynagh 15 June 2022 Inspirational Workshop with Belinda O'Neill Change the Langu8g4 Change the Stigma with Hannah Murtagh Change the Languagq Clwige the Stigma with Hannah Mur¢agh (Wallace High) Septernber 2022 15 Septernber 2022 30 October 2022 Sales & Strategy with Brendan Murphy 15 January 2023 Nutritional Wellbeing Workshop Febnwy 2023 Be Inspired to Bc Workshop March 2023 How to work a room Externally funded buslnes5 support During the year the achicvemcnts of our Prowme &¢tiviti¢s, delivered in conjunction with extcrnal funders, were as follow$: Pro ramm¢ Go for It Pro Aetivi lout uts New businesses crcated Trainin sessions delivered Mentorin dclivcrcd hours 2023 results 124 2022 results 142 2021 results 104 ramme GF 902 694 Enle rise New businesse5 crcatcd Trainin SC55ion5 delivered Mentorin delivered hours Found Work Referred to GFI 12 318 12 318 12 318 Co-lnnovate Trainin sessions delivered Mentorin delivered ours Busines5 Ststus Review NIA NIA NIA NIA NIA NIA ENI Loan Fund New businesses drnwn down loan Mentorin delivered hours Grants of £1.500 issued to individuals completing the Go For It Pro 45 19 25 14 14 NIA Pathways- Go For It grant5 Environment CIDO takes seriously its re5ponsibilitie5 in relation to the enviroomenL Th¢ twste¢s continue to putsue ecfrfriendly initiatives as they take the company forward. The i2 CItX) Innovation Centre is heated by air to water hcat pumps and recycling of paper has been instigated. In February 2014 80 solar panels were installed at the 12 CIDO tnnovation Centre, which generated 4.233kWh (2022: 4.059kWh) during the year ended 31 March 2023. This equates to an amiual saving of £4,429 (2022.. £3,552). Craigavon Industrial Development Organisation (a company limited by guarantee) Report of the trustees for the year ended 31 March 2023 (continued) Principal risks and uncertainties Our performance is affected by gcnerdl cconomic ¢imditions and Government policie5 in relation to the funding of local economic programmes. The CUTrent review of economic policy and its delivery in T¢lation to the future role for Local Economic Development Agencies such as CIDO is Dot clear. CIDO and its trust￿ are constantly reviewing th¢ group, strategic position and options in relation to the fuwre sustainability of our group. CIDO produce critical financial management reports ijn a regular basis which highlight the key areas that need to be monitor¢d to minimi5e risk. These reports include". Property credit control- rninimising bad debt. and Programmc- monitoring programme drawdown and claims affecting flow and bank charges. Plans for development The group has assessed the major risks to which the ¢h4rity is exws¢d, in particular those related to the operations and finances of the company and are satisfied that systems are in place to mitigate any exposure to the major risks. Plans for future periods Throu8h enhanced brand awaren¢ss and marketing activity, CIDO will improve the promotion of its xrvices. demongtrating why it is the best organisation for small and micro businesses to access help. support, and business premise5 in the Craigavon area. We will continually enhance our full suite of services and improve our infrastrucnre to help grow exisling busines5cs and attract new one5 to our site5. The trustees are committed to thiving the company forward by applying thc surplus received on property activities against the clwiiable objectives embodied wilhin the ¢conomic development programme5 delivered by the company. In relation to businc5s development programme4 these have, up until now, been PTim8rily funded through European bodies, however these fimding packages end in March 2023. Therefott, CIDO has explored alternative sour￿$ of fijnding including the UK Shared Prosperity Fund and Peace Plus in OTder to deliver releYanL first ¢lass tailored support to local start-ups and existing businesses. CIDO'S business support services will be focused and Co￿rdinated with other offerings in the region to provide an unparalleled Suite of provision to new and existing businesses includin8: business inforniauon. advice, netWOTkin& signposting, mentOTin& and gTOUP training. The current CIDO Strategy hlghlights the top 5 major threats to thc organisation which are as follows.. High demand for small industrial units Decrcase in demand for office space post Covid 19 pandemic Lack of EurOpea[￿GOVernMent business support programmes from March 2023 Economic declinelTecession Lack of grant funding for infrdstructure projects Therefore. it is vitally important that cItK) continually aims to mitigate as many of these risks as FK)ssible in order to sustain the organisation and continu¢ to provide an excellent 5crvi¢e. It is also imporlant that CIDO continues to re-invest any surplus in both programme delivery, maintenance of each sitc and development of additional workspace to meet demand. Business advice and support delivered outside of fijnded programm&s has increased dramatically during the past 12 months and this activity has been recorded against CIDO'S charitsble status. In the past number of mo1)th& plans have been drawn up for 5 new light-industrial units totalling 6.000 sq. ft. adjacent to the existing Innovation Centre. These plans have been submitted to th¢ planning depatlment. and should they be approved. building will commence as soon as partial funding for the Project can be idcntified to make it financially viable for CJDO. In addition. 6 office pods have been d￿¢10p¢d next to the existing Innovation Centre. The pod5 can accommodats 3-5 persons. they are fulty $ervic¢d and include heaL lighL ele¢tricty. and broadband within the monthly cosL Craigavon Industrial Development Organisation (a eompany limited by guarantee) Report of the trustees for the year ended 31 March 2023 (CODtinued) Tenant5 are a150 able to utilisc thc full range of facilities within thc InDovation Centre such as the on-site cafe, toilets. co working space. and conference faciliti&s. The focus for the next 12 months will be ensuring that these pods are promoted sufficiently to achieve IOO¥v occupation. A planning appli¢ation will shortly be subrnitted to th¢ local planning authority for 10 stordge ¢ontaincrs to be located in the overflow car pa￿ between Centres 1& 2. This facility can be utilised by existing CIDO tenants for the storage of ex¢css equipmenL stock. and materials so that the sites can Temain saf4 clean, tidy. and fr¢e of hazards. CIDO will ronlinue to fully maintsin each site. adhere to all health and safety legi51ation. improve custorner serviGe and develop plans to promote the services more effectively. Structur& Governance and M2nagement Trustees As set out in the Articles of Association the number of voluntw tnistees shall not exceed 20. The trustees may appoint person as an addition to the existing trusttts, but the number at any time shall not ¢x¢eed 20. A r¢tirin8 trustee shall be eligible for re-appointment. One third of the elected rnembers retire each year. with those longest serving retiring r￿st. All members are circulated prior to the AGM advising them of the members retirin& inf(¥rmins th¢m of the responsibilities of a member and inviting th¢rn to make nominations on the appropriate forni. The tru5tc¢s arc not rcmunerated. Orglnisatlon The bovd met five times this yeor covering the operations of the chority and group and matters of corporate strntegy. Board m¢rnber meetlnes attend¢d Mr J Blane Chairnian MT J E Moore Vice Chainnan Dr C Neville Mr M Bell MrLFo MrJPHa an LLB Mr A Hatch Mrs A Mawhinne Mrs E Mcclur OBE Mr K O'cotmor Mr J Anderson Mr G Ander50n Humao resources During the past 12 month5, CIDO h&8 inV￿ted heavily ID staff training whiGh will increase ihe team's knowledge. confidence. and adaptability within the organlsation. Also, following the Covid 19 pandemic. staff wellbeing and mentsl health has becotne a foGu5 within CIDO. therefore monthly wellbeing session5 arc available which bave already improved morale within the team and reduced absences relating to stras and sickness. CIDO this year has successfully rctrined its Inve5tOT5 in People a¢cr¢ditstion and will continue throughout the next 12 TDonths to work towards r&ention of this accreditation. Craigavon Industrial Development Organisation (a company limited by guarantee) Report of the trllste￿ for the year ended 31 March 2023 (continued) Poy and Remuneration of Key Man2gemeDt Personnel Principles and policies relating to the remunernion of the charity's key maDagem¢nt personnel are reviewed and agreed by the Board. The Board take into ￿CoUnt the external matkct and 5Ct salary levels in the Lx)nt¢xt of the entity's charitsble sta￿S and affordability. Financial instruments and risk management The charitable company does not make use of financial iD$¢nllnents. The group's operations expose it to a variety of financial risks that includc the effects of changes in credit risL liquidity risk and interest rate risk. The group has in place a risk management programme that secks to limit thc adverse effects on the financial perforniance of the group by monitoring levels of debt finance and the related fmance costs. Given the size of the group, the tTUStees have not delega￿d the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the trustees are implemented by the company's finance department. Credit risk Th¢ group has implemented poli¢ies that require appropriat¢ ¢redit checks on potential Customers before rental agreements are made. The amount of exposure to individual ¢u$lomers is subject to a limiL whi¢h is reassessed re8ularly by the boar