Company registration number 01585927 (England and Wales)
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
CONTENTS
Page
Balance sheet
2
Notes to the financial statements
3 - 7
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
CHAIRPERSON'S STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The team at New Work Trust Company Ltd (NWT) have continued to strive to assist customers in developing their businesses. The war in Ukraine, the tail end of the pandemic and other post Brexit issues have led to unpredictable economic circumstances. However, those circumstances have also created opportunities for our customers as the world has moved to more localised economies.
As with all businesses NWT has not been immune to the high levels of inflation during this period of accounts. Whilst we have done all we can to mitigate those cost increases, we have needed to pass some costs to our Licensees by way of License Fee increases. In order to ensure this process was fair, NWT engaged professional assistance from Knight Frank LLP in reassessing the correct Fee to charge for each unit at the Station Road site.
During the year, NWT has continued to invest in the site. As well as an ongoing process of refurbishment, notable investments include completing the heating system upgrade from gas to electric, replacing the fire alarm system and the first phase of upgrading the incoming electrical system.
The roof at Station Road continues to be an issue, South Gloucestershire Council (SGC) have engaged with the situation. During this period of account a full structural site survey and an energy efficiency survey have been conducted. SGC wish to assess the life of the site before considering options for the roof. The local elections have meant little progress since January 2023, but we remain hopeful further progress will be made in 2023. In the meantime, NWT have invested in various roof repairs including a substantial investment in relining the roof gullies.
Occupancy at Station Road remains high, above 90%, I am pleased to report an increase in rentals to £806,074 (previous £746,879). Maintenance costs have returned to a more normal level of £150,970 (previous £199,918). The result was an operating surplus of £9,597 compared to an operating deficit of £11,780 in the previous year. As a not for profit organisation, the Board are content with this result.
The balance sheet of NWT remains healthy with net current assets at £448,237 and net assets at £152,369. The sinking fund has increased to £135,181 in anticipation of further investments in 2023.
During the course of the year, the Board made the decision to change the management structure at NWT to bring it in line with current needs. The previous structure was somewhat top heavy in terms of operational management but light in terms of planning for the medium to long term. The new team is now in place. I would like to thank the whole team and the Board for their help in this necessary process of change.
Mr S Madan
Chairman
21 November 2023
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
846
1,833
Current assets
Debtors
4
71,210
74,046
Cash at bank and in hand
489,397
459,955
560,607
534,001
Creditors: amounts falling due within one year
5
(112,370)
(123,321)
Net current assets
448,237
410,680
Total assets less current liabilities
449,083
412,513
Provisions for liabilities
6
(296,714)
(269,741)
Net assets
152,369
142,772
Reserves
Paid-up members guarantees
2,570
2,570
Income and expenditure account
149,799
140,202
Members' funds
152,369
142,772
The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 November 2023 and are signed on its behalf by:
Mr M Evans
Director
Company Registration No. 01585927
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
New Work Trust Company Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Station Road Workshops, Station Road, Kingswood, Bristol, Avon, BS15 4PJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the 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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Income and expenditure
Income and expenses are included in the financial statements as they become receivable or due.
Expenses include VAT where applicable as the company cannot reclaim it.
1.3
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:
Fixtures, fittings & equipment
25% Reducing Balance
Computer equipment
St. Line over 2 years
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 credited or charged to surplus or deficit.
1.4
Impairment of fixed assets
At each reporting period end date, the 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
1.6
Financial instruments
The 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 company's balance sheet when the 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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 business 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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.7
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
11
8
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
3
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
9,500
1,412
10,912
Depreciation and impairment
At 1 April 2022
8,373
706
9,079
Depreciation charged in the year
281
706
987
At 31 March 2023
8,654
1,412
10,066
Carrying amount
At 31 March 2023
846
846
At 31 March 2022
1,127
706
1,833
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Service charges due
7,116
8,816
Station Rd. joint venture acount with South Glos. Council
60,303
61,932
Other debtors
3,791
3,298
71,210
74,046
5
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
2
Trade creditors
58,625
69,891
Other taxation and social security
25,694
15,373
Small business rate refund due to tenants
26,164
Accruals and deferred income
28,051
11,891
112,370
123,321
HSBC Bank plc. holds fixed charges over bookdebts, other debts present & future, goodwill and uncalled capital. HSBC Bank plc. holds floating charges over the undertaking and all property and assets present and future including uncalled capital.
NEW WORK TRUST COMPANY LTD
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
6
Provisions for liabilities
2023
2022
£
£
Station Road Sinking Fund for building maintenance
135,181
125,181
Licencees deposits held
161,533
144,560
296,714
269,741
7
Members' liability
Under the terms of the Company's Memorandum of Association, every member of the Company undertakes to contribute to the assets of the Company in the event of it being wound up whilst they are a member and for one year after ceasing to be a member. The pledge may be between £5 and £100.
The amount of guarantees pledged but not yet paid amounts to £140 (2022 £140)
8
Operating lease commitments
Lessee
The company has a 15 year lease from 1st April 2015 on the premises at Station Road, Kingswood rented from South Gloucestershire Council. The lease conditions include tenants break clauses at years 5 and 10.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:-
2023
2022
£
£
292,460
388,774
9
Related party transactions
Mr O Evans is a partner in the firm Evans & Partners Ltd. Chartered Accountants, who have been employed to prepare statutory accounts. and other consultations. Evans & Partners charged £3,423 (2022 £9,145) in total for accounting and advisory work during the year in addition to his normal directors remuneration.
Mrs. Nicola Peters is director and has a controlling interest in Nicola Mayhew HR Consulting Limited who charged £4,991 (2022 £8,575) during the year in respect of HR advice.
Mr Savi Madan is director and has a controlling interest in Coaction Consulting Ltd who charged £4,295 during the year in respect of consulting advice.
Mr Ken Bell had a controlling interest in Baytree Media who during the year charged £2,480 during the year in respect of consulting advice.