IRIS Accounts Productionv23.2.0.158OtherCompany accountsTruefalsePounds1.3.2228.2.2328.2.23FYFRS 102Independent examinerLarge and medium-sized companies regime for accountsFullCharities SORPtruetruetruetruefalsetruefalsetrue00 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC2796982022-02-28SC2796982023-02-28SC2796982022-03-012023-02-28SC2796982021-02-28SC2796982021-03-012022-02-28SC2796982022-02-28SC279698ns11:Originalns0:CharitableCompanyLimitedByGuarantee2022-03-012023-02-28SC279698ns11:Original2022-03-012023-02-28SC279698ns15:PoundSterlingns11:Original2022-03-012023-02-28SC279698ns11:Original2022-02-28SC279698ns11:Original2023-02-28SC279698ns11:Originalns11:FRS1022022-03-012023-02-28SC279698ns11:IndependentExaminationCharityns11:Original2022-03-012023-02-28SC279698ns11:Originalns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-03-012023-02-28SC279698ns11:Originalns11:FullAccounts2022-03-012023-02-28SC279698ns11:Originalns11:CharitiesSORP2022-03-012023-02-28SC279698ns11:Original2021-03-012022-02-28SC279698ns11:Originalns16:EnglandWales2022-03-012023-02-28SC279698ns11:Originalns11:RegisteredOffice2022-03-012023-02-28SC279698ns11:Originalns0:Trustee12022-03-012023-02-28SC279698ns11:Originalns0:Trustee22022-03-012023-02-28SC279698ns11:Originalns0:Trustee32022-03-012023-02-28SC279698ns11:Originalns0:Trustee42022-03-012023-02-28SC279698ns11:Originalns0:Trustee52022-03-012023-02-28SC279698ns11:Originalns11:CompanySecretary12022-03-012023-02-28SC279698ns11:Originalns11:MainIndustrySectorHeading2022-03-012023-02-28SC279698ns11:Original2021-02-28SC279698ns11:Original2022-02-28SC279698ns11:Originalns10:WithinOneYear2023-02-28SC279698ns11:Originalns10:WithinOneYear2022-02-28SC279698ns11:Originalns0:TotalUnrestrictedFunds2023-02-28SC279698ns11:Original32022-03-012023-02-28SC279698ns10:CostValuationns11:Originalns10:ListedExchangeTraded2022-02-28SC279698ns11:Originalns10:AdditionsToInvestmentsns10:ListedExchangeTraded2023-02-28SC279698ns11:Originalns10:DisposalsRepaymentsInvestmentsns10:ListedExchangeTraded2023-02-28SC279698ns11:Originalns10:RevaluationsIncreaseDecreaseInInvestmentsns10:ListedExchangeTraded2023-02-28SC279698ns10:CostValuationns11:Originalns10:ListedExchangeTraded2023-02-28

REGISTERED COMPANY NUMBER: SC279698 (Scotland)

REGISTERED CHARITY NUMBER: SC024123










THE INVERCLYDE TRUST

(A COMPANY LIMITED BY GUARANTEE)


REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28TH FEBRUARY 2023


THE INVERCLYDE TRUST







CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28TH FEBRUARY 2023






Page



Report of the Trustees  

1


to


3


Independent Examiner's Report  

4



Statement of Financial Activities  

5



Balance Sheet  

6


to


7


Notes to the Financial Statements  

8


to


12


THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)


REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 28TH FEBRUARY 2023



The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 28th February 2023. The trustees have adopted the provisions of 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).


This report of the trustees meets the requirement for a directors' report as required by company law


OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objects of the trust are to relieve poverty, distress or suffering in any part of the world, to promote the extension of religious belief and to promote any charitable purpose for the benefit of the community of Great Britain, the developing world or the environment. This is undertaken by granting substantially all of the annual income generated from a portfolio of long term equities, though making donations out of capital is also possible.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

All the grants made during the year continue to be focussed on the objects of the Trust, with the continued intention of providing some donees with long term multiyear support. There is an emphasis on supporting smaller charitable entities which are not able to compete with large charities to raise money, nor are spending substantial proportions of their income in the fund-raising process. These tend to be the largest recipients of support from the Trust. Notable amongst these are, as in recent years, AYDAP (school project in Liberia), Operation Mobilisation (street children project in Zambia), Navigators UK, and Scripture Union (Magnitude youth event).

Amongst the large grants was AYDAP (education, child protection, and welfare of children in Liberia) made to enable the development of the second school, having been built at the end of 2020 and been operating since then. Grants from the trust and another large Scottish foundation are being used to raise enrolment levels to 100 (currently around 50), at which point the Liberian education system should recognise and start to provide support. The Scripture Union Magnitude youth event attracts some 700 young people. The Loss Foundation provides bereavement support to families.

Grants exceeded by some margin the income generated by the portfolio during the year.

Investment performance

The core objectives of the funds of the Trust continues, namely to maintain (and increase over time) the income of the portfolio along with steady capital gain. The portfolio is split between a direct self-managed part, and one subcontracted to the M&G Charifund. The overall portfolio produced income of £78,921 in the trust's 2023 financial year, compared to £65,029 in 2022.

The equity markets experienced a volatile 2022, with the impact of the war in Ukraine and the end of the long period of low and stable interest rates came to an end. After a depressed autumn in early 2023 they recovered in a relief rally as Europe survived the winter energy crisis reasonably well, and the US seemed to find a peak to its inflationary spiral. With much of the SAP500 performance being driven by its large technology stocks, the FTSE 100 and its lack of technology companies has led it most of the time to underperform at least the US indices. A substantial cash reserve, and the Trust's direct portfolio via investment trusts (around 50% of the direct portfolio), provided some protection in the extreme volatility that has been observed in 2022. However, the use of investment trusts has been a drag on performance for once as the sector has remained out of favour along with many retail investor driven sectors. Many retail investors are turning to the high yield attractions of both savings accounts and stocks or bonds, that have risen substantially along with interest rates. This creates a great opportunity to acquire assets at a discount and now enter higher yielding bond or bond proxy investments at significant yields. The trustees continue to believe that the investment trust sector will make a recovery in due course.

FINANCIAL REVIEW

Financial review

The trust's net loss for the year to 28th February 2023 was £9,131. Included in this is the gain on investment assets of £25,719. The accumulated funds at 28th February 2023 are £1,962,917. The funds are held at this level to produce income to support the charitable activities.



THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)


REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 28TH FEBRUARY 2023



FINANCIAL REVIEW

Reserves policy

As part of its activities the trust sets out to be a long term supporter of certain projects or organisations that fulfil its objectives. To ensure that it can continue that support the trustees deem it appropriate to hold reserves, and primarily to use the income generated by those reserves, when invested, to support its activities. The trust does not raise funds from the public or third parties. All of its capital has been donated by the trustees and there is no certainty of that from year to year. At 28th February 2023 the trust had unrestricted reserves of £1,962,917. It is the opinion of the trustees that a minimum level of £1,000,000 in reserves is required to provide the income to support its activities for the long term. Utilisation of the reserves below that level to make grants would reduce the income generating base, and over time the ability to provide long term support. The reserves will be reviewed annually in the light of the development of the activities of the trust.

Going concern

The accounts have been prepared on the going concern basis. The justification for this is that the reserves held are sufficient to produce income to support the charitable activities.


FUTURE PLANS

The trust will continue to combine some long-term support for certain projects with one off or irregular support for new charitable activities. On the investment side, it is proposed to continue to split the portfolio between the outsourced portion with M&G Charifund and a more international selection of shares and trusts in the self-managed part.


STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 9th February, 2005. It is registered as a Scottish Charity.


Recruitment and appointment of new trustees

New trustees are recruited and appointed by the existing trustees in accordance with the Articles of Association as deemed necessary to meet the objects for which the charity was established.

Organisational structure

The trustees at 28th February, 2023 are as set out below and they have served for the full financial period.

Risk management

The annual review of the risks facing the trust was undertaken by the directors. The main risk is investment performance, and in particular income generation to support the grant making activity, as the trust does not undertake fund raising from third parties, and so relies upon the portfolio to generate the funds for making donations. The portfolio is diversified by holding both direct holdings and investment trusts (which themselves are highly diversified) in the own managed portfolio, generating an above market yield but not to the extent of hampering some capital growth. This portfolio is given an international 'tilt' given the dominance of UK holdings in the M&G Charifund portfolio, thus magnifying the diversification. The Charifund is higher yielding.
The Trust has sought to achieve income through a 100% exposure to equities either via the M&G Charifund or in the direct portfolio (though the Charifund does have some fixed coupon exposure). In an era of very low interest rates this has produced a much better total return than could be achieved via bonds or gilts. This asset allocation is kept under review, and after a torrid time for fixed interest securities with many falling by around 25% in 2022, the trust will seek an exposure to this asset class, probably via collective vehicles. Once interest rates peak this should provide a good yield, some capital protection, and better returns than fixed interest has produced in the last couple of years. During the year the defensive cash balance was reduced as investment opportunities arose.
Wherever possible as a matter of policy, the risk of making a donation to an entity with poor governance is mitigated by making the donations to UK registered charities. Regular contact is maintained with the key donees and reports are sought where appropriate.
The risk of personal data breaches and not meeting the requirements of the General Data Protection Regulation introduced at the end of May 2018 is minimal as the trust holds no personal data on anyone another than the trustees as it does not raise money from the public.
The Trust has substantial and largely liquid unrestricted reserves, and low operating costs, and is well positioned to manage the current global circumstances.


THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)


REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 28TH FEBRUARY 2023


REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC279698 (Scotland)


Registered Charity number

SC024123


Registered office

Barnellan

Bardowie

Milngavie

Glasgow

G62 6EZ


Trustees

G Burns

C Burns

K Burns

P Burns

S Burns


Company Secretary

G Burns


Independent Examiner

Russell & Russell Business Advisers Limited

4 Royal Crescent

Glasgow

G3 7SL


Bankers

Bank of Scotland

Direct Business


Stockbrokers

J.M. Finn & Co

4 Coleman Street

London

EC2R 5TA


This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.


Approved by order of the board of trustees on 28th November 2023 and signed on its behalf by:






G Burns - Trustee


INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

THE INVERCLYDE TRUST


I report on the accounts for the year ended 28th February 2023 set out on pages five to twelve.


Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.


Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.


Independent examiner's statement

In connection with my examination, no matter has come to my attention :


(1)

which gives me reasonable cause to believe that, in any material respect, the requirements


-

to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

-

to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations


have not been met; or


(2)

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.









Ann McNally FCCA

The Association of Chartered Certified Accountants


Russell & Russell Business Advisers Limited

4 Royal Crescent

Glasgow

G3 7SL


28th November 2023


THE INVERCLYDE TRUST


STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 28TH FEBRUARY 2023



28.2.23


28.2.22


Unrestricted


Total


fund


funds


Notes

£   

£   


INCOME AND ENDOWMENTS FROM


Investment income

2

78,921


65,029



EXPENDITURE ON

Charitable activities

3

Grants and donations payable

94,500


83,000


Support costs

19,271


18,809


Total

113,771


101,809



Net gains on investments

25,719


141,101



NET INCOME/(EXPENDITURE)

(9,131

)

104,321




RECONCILIATION OF FUNDS

Total funds brought forward

1,972,048


1,867,727



TOTAL FUNDS CARRIED FORWARD

1,962,917


1,972,048



THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)


BALANCE SHEET

28TH FEBRUARY 2023



28.2.23


28.2.22


Unrestricted


Total


fund


funds


Notes

£   

£   


FIXED ASSETS


Investments

7

1,808,061


1,783,443



CURRENT ASSETS


Debtors

8

82,663


81,561


Cash at bank

75,433


125,852


158,096


207,413



CREDITORS


Amounts falling due within one year

9

(3,240

)

(18,808

)


NET CURRENT ASSETS

154,856


188,605



TOTAL ASSETS LESS CURRENT

LIABILITIES

1,962,917


1,972,048



NET ASSETS

1,962,917


1,972,048


FUNDS

10

Unrestricted funds

1,962,917


1,972,048


TOTAL FUNDS

1,962,917


1,972,048



The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28th February 2023.


The members have not required the company to obtain an audit of its financial statements for the year ended 28th February 2023 in accordance with Section 476 of the Companies Act 2006.


The trustees acknowledge their responsibilities for
(a)ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.


THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)


BALANCE SHEET - continued

28TH FEBRUARY 2023


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




The financial statements were approved by the Board of Trustees and authorised for issue on 28th November 2023 and were signed on its behalf by:






G Burns - Trustee


THE INVERCLYDE TRUST


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28TH FEBRUARY 2023


1.

ACCOUNTING POLICIES



Basis of preparing the financial statements


The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.



The presentation currency of the financial statements is the Pound Sterling (£).



Income


All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Gift aid donations include the related income tax recoverable.



Expenditure


Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.



Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.



Charitable grants


Grants reflect amounts paid and payable in the accounting period.



Fixed asset investments


a) Investments are initially recognised at their transaction value and subsequently measured at their market value at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.


b) All investment gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.



Taxation

The trust has charitable status and is exempt from taxation on income and capital gains. Donations to the trust attract income tax relief for the donors. As the trust is not registered for value added tax such tax is not recoverable and is accordingly included in the expenditure.


Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
a) Basic debt financial assets and liabilities
Debt financial assets and liabilities which comprise debtors and creditors, are receivable and payable within one year and recognised at the transaction price.
At the end of each accounting period debt financial assets are assessed for impairment and their carrying value reduced if necessary. Any impairment charge is recognised in the statement of financial activities..
b) Fixed asset investments


THE INVERCLYDE TRUST


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 28TH FEBRUARY 2023


1.

ACCOUNTING POLICIES - continued



Financial instruments

As indicated above in the separate accounting policy, fixed asset investments that are equity of the issuer are measured at fair value with gains or losses recognised in the statement of financial activities.

2.

INVESTMENT INCOME


28.2.23


28.2.22

£   

£   



Income from UK listed investments

77,772


64,912




Interest receivable

1,149


117



78,921


65,029




3.

GRANTS AND DONATIONS



The grants paid to institutions were as follows:



          28.2.23


          28.2.22





           £


           £




Abernethy Trust


5,000


5,000




African Youth Development Action Project - Liberia


8,000


8,000




Association of Christian Counsellors


2,000


-




British Red Cross


7,000


-




Care for the Family


-


3,000




Changing Lives Malawi


4,000


-




EthiopiAid


-


4,000




Glasgow City Mission


5,000


3,000




Ibex Capital Trustee


-


4,000




Interserve Great Britain and Ireland


3,000


2,000




Music Education Partnership Group


2,500


2,000




Navigators UK


7,000


5,000




New Destiny Trust (UK)


-


3,000




Operation Mobilisation


9,000


7,000




S.A.L.V.E. International


-


5,000




Sannox Christian Centre


-


2,000




Save The Children


-


3,000




Starfish South Africa


5,000


-




SU Scotland - Soul Survivor


14,000


10,000




The Loss Foundation


7,000


7,000




The Preshal Trust


3,000


-




The Salvation Army


3,000


3,000




Torrance Parish Church


-


5,000




The Trussell Trust


3,000


-




WaterHarvest


-


2,000




World Vision


7,000


-





94,500


83,000





THE INVERCLYDE TRUST


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 28TH FEBRUARY 2023


4.

SUPPORT COSTS


Governance


costs

£   



Support costs

19,271





Support costs, included in the above, are as follows:



28.2.23


28.2.22


Support


Total


costs


activities

£   

£   



Management fees

16,031


15,809




Independent examiner's fees

1,296


1,200




Accountancy and tax fees

1,944


1,800



19,271


18,809




5.

TRUSTEES' REMUNERATION AND BENEFITS



Management fees comprise an amount charged by Barnellan Equity Advice Limited for management services rendered during the year of £16,031 (2022: £15,809). G. Burns is a director in this business.



There was no trustees' remuneration paid for the year ended 28th February, 2023 nor for the year ended 28th February, 2022.



Trustees' expenses


There were no trustees' expenses paid for the year ended 28th February 2023 nor for the year ended 28th February 2022.


6.

STAFF COSTS



There were no staff costs for the year ended 28th February 2023 nor for the year ended 28th February 2022.



The average monthly number of employees during the year was as follows:



28.2.23


28.2.22



No employees received emoluments in excess of £60,000.



The company had 0 employees during the year.



THE INVERCLYDE TRUST


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 28TH FEBRUARY 2023


7.

FIXED ASSET INVESTMENTS


Listed


investments

£   



MARKET VALUE


At 1st March 2022

1,783,443




Additions

184,748




Disposals

(183,229

)



Revaluations

23,099




At 28th February 2023

1,808,061




NET BOOK VALUE


At 28th February 2023

1,808,061




At 28th February 2022

1,783,443





There were no investment assets outside the UK.



Cost or valuation at 28th February 2023 is represented by:



Listed


investments

£   



Valuation in 2023

1,808,061




8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


28.2.23


28.2.22

£   

£   



Amount owed by stockbroker

82,663


81,561




9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


28.2.23


28.2.22

£   

£   



Accruals and deferred income

3,240


18,808




10.

MOVEMENT IN FUNDS


Net




movement


At



At 1.3.22


in funds


28.2.23


£   

£   

£   



Unrestricted funds


General fund

1,972,048


(9,131

)

1,962,917





TOTAL FUNDS

1,972,048


(9,131

)

1,962,917




THE INVERCLYDE TRUST


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 28TH FEBRUARY 2023


10.

MOVEMENT IN FUNDS - continued



Net movement in funds, included in the above are as follows:



Incoming


Resources


Gains and


Movement



resources


expended


losses


in funds


£   

£   

£   

£   



Unrestricted funds


General fund

78,921


(113,771

)

25,719


(9,131

)




TOTAL FUNDS

78,921


(113,771

)

25,719


(9,131

)





Comparatives for movement in funds



Net




movement


At



At 1.3.21


in funds


28.2.22


£   

£   

£   



Unrestricted funds


General fund

1,867,727


104,321


1,972,048





TOTAL FUNDS

1,867,727


104,321


1,972,048





Comparative net movement in funds, included in the above are as follows:



Incoming


Resources


Gains and


Movement



resources


expended


losses


in funds


£   

£   

£   

£   



Unrestricted funds


General fund

65,029


(101,809

)

141,101


104,321





TOTAL FUNDS

65,029


(101,809

)

141,101


104,321




11.

RELATED PARTY DISCLOSURES



There were no related party transactions for the year ended 28th February 2023.