Charity registration number 1117543
Company registration number 05829485 (England and Wales)
SEEDFUND LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SEEDFUND LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Board Of Trustees
Martyn Dunsford
Martin Fakley
Laurence Evans
Patron
Mr David Devenish
CEO
Mr Charles Glass
Secretary
Martin Fakley
Charity number
1117543
Company number
05829485
Principal address
Sovereign Place
Upper Northam Road
Hedge End
Hampshire
Southampton
SO30 4BB
Registered office
Sovereign Place
Upper Northam Road
Hedge End
Hampshire
Southampton
SO30 4BB
Accountants
Carpenter Box
Piper House
4 Dukes Court
Bognor Road
Chichester
West Sussex
P019 8FX
SEEDFUND LIMITED
CONTENTS
Page
Trustees' report
1 - 3
Accountants' report
4
Statement of financial activities
5
Balance sheet
6
Notes to the financial statements
7 - 11
SEEDFUND LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The Board of Trustees present their report and accounts for the year ended 31 December 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 charity'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
The charity's objects are to relieve poverty and promote education in the United Kingdom and abroad, and in particular (without prejudice to that generality):

(A) by the provision of education, training and re-training in basic business skills to equip potential entrepreneurs to run their businesses successfully;
(B) by the provision to poor persons of assistance in the establishment of small businesses; and
(C) the provision of temporary support for 'appropriate' small businesses. 'Appropriate' in this context shall mean small business owned by and primarily employing poor persons where there is otherwise insufficient alternative employment to relieve their poverty and where any such business is in danger of failure without such temporary support, but in circumstances where without such support the small business concerned shall in the opinion of the the trustees have good prospects of recovery and viability.

The goals of SEEDFUND LIMITED, (now branded as “SeedFUND International”), “SeedFUND” are unchanged; led by their over-arching vision: "With grants and access to savings or affordable microloans, poor people can help themselves out of poverty by creating and expanding small businesses. The investment results in amazing returns: the micro-entrepreneurs not only help themselves out of poverty, but they also improve the lives of family members and build their communities." SeedFUND will facilitate the initiation and/or development of small business enterprises among the poor in other nations, by providing grants where the capital required is either inaccessible or prohibitively expensive. By this means poor people will be helped to escape the poverty trap by becoming self-sufficient. More employment opportunities may be created through these businesses to further expand these benefits. SeedFUND will provide advice, guidance and training in basic business skills to equip potential entrepreneurs to run these businesses successfully. SeedFUND will work in close co-operation with Care and Relief for the Young (CRY), a registered UK charity (1011513).

Public benefit

The Board of Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance
Significant activities and achievements against objectives

The charity has continued to monitor existing small business loans to relieve poverty. Activity has begun to recover post the COVID-19 pandemic and in particular the charity has expanded its work into several developing African countries. Whenever possible, funds in host countries are re-loaned to different business start-ups for the same purposes but there was little such activity in this year. To minimize travel costs, coaching, training activities and meetings were carried out over the internet rather than face-to-face.

Financial review

During the year the company has received two donations and made two new grants to assist developing small businesses. A micro-enterprise fund has been established in Burkina Faso resulting in several small start-up businesses. A successful chicken farming venture providing young people with employment income and tuition fees for tertiary education has been established in Zambia.

SEEDFUND LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between one and two year's of projected management expenditures (running costs). Grants are excluded from this reserves policy as they are only awarded when there are cash resources available. The Board of Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Principal funding sources

The source of funding is from individuals or charitable organisations which share the same objectives as SEEDfund i.e. the provision of micro-enterprise finance for the provision of employment and the alleviation of poverty.

Major risks

The Board of Trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The principal risks are the default of loan repayments to the charity, but the individual loan amounts are not significant and would be written off (and relending of the monies forgone).

Secondary risks in deploying grants and loans to individuals in foreign (non-UK) countries include assessing the impact of major external events , such as geo-political unrest, COVID-19, and natural disasters as well as currency shifts.

There are no significant risks to the charity from its UK operations other than the inability to retain volunteers to staff the charity (there being no paid employees).

Plans for future periods

SeedFUND's objective has been the provision of microfinance services alongside business training, market access, industry growth and business products - empowering poor clients to start or expand their own small businesses and transform their lives economically, socially and spiritually. SeedFUND builds on the foundation of microfinance to give poor entrepreneurs an effective pathway to free themselves from the grip of poverty by developing the local economy in a sustainable way, benefiting the entire community. The aim is not just to provide 'charity' but also to help people escape the poverty trap with dignity by becoming self-sufficient. Tackling the causes of poverty at grass roots level has proven to be one of the most effective and sustainable ways to solve poverty. SeedFUND helps self-starting adults to increase their income, which has an immediate and lasting impact on the family's ability to afford food, shelter, education and healthcare. As the business income increases, the business is able to expand, and the effect spreads beyond the family into the local community, through employment and contribution to the local economy. The charity's plan for the future continues as 'more of the same'. Revolving funds in each country of activity are now becoming available run by the charity's own representative to further assist more business activity.

 

The Board continues to develop a greater breadth of sponsorship for its activities. The steering group of leaders from a number of related UK churches should result in higher levels of giving to the charity and greater exposure of its charitable work. The charity has developed and adopted a Safeguarding Policy.

 

Work continues to re-brand the charity as “SeedFUND International” and further develop the website for informational and fundraising purposes.

Structure, governance and management

The principal activity of the company is assisting with the development of small business enterprises among the poor.

 

The company is governed by its Memorandum and Articles of Association as amended by special resolution dated 23 September 2006.

 

The company is limited by guarantee and has no share capital.

 

None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and each guarantee to contribute up to £10 in the event of a winding up.

SEEDFUND LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The Board of Trustees, who are also the directors for the purpose of company law, and who served during the year were:

Martyn Dunsford
Martin Fakley
Laurence Evans
Recruitment and appointment of trustees

Prospective trustees are recommended and interviewed by the current trustees to assess their particular interest, their skills, experience, area of expertise and their potential contribution. Appointment is approved by the Board of Trustees.

 

New trustees are encouraged to familiarise themselves with the Memorandum and Articles of Association, the policies, aims and objectives of the charity.

On behalf of the board of Board of Trustees
Martin Fakley
Trustee
1 August 2024
SEEDFUND LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF SEEDFUND LIMITED FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Seedfund Limited for the year ended 31 December 2023, set out on pages 5 to 11 from the charity’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance/

This report is made to the charity's Board of Trustees, as a body, in accordance with the terms of our engagement letter dated 5 July 2022. Our work has been undertaken solely to prepare for your approval the financial statements of Seedfund Limited and state those matters that we have agreed to state to the charity's Board of Trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Seedfund Limited and the charity's Board of Trustees as a body, for our work or for this report.

It is your duty to ensure that Seedfund Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Seedfund Limited. You consider that Seedfund Limited is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.

We have not been instructed to carry out an audit or a review of the financial statements of Seedfund Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Carpenter Box
5 August 2024
Chartered Accountants
Piper House
4 Dukes Court
Bognor Road
Chichester
West Sussex
P019 8FX
SEEDFUND LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Unrestricted
Unrestricted
funds
funds
2023
2022
Notes
£
£
Income from:
Donations and legacies
2
14,500
-
Expenditure on:
Raising funds
3
188
786
Charitable activities
4
7,420
368
Total expenditure
7,608
1,154
Net income/(expenditure) and movement in funds
6,892
(1,154)
Reconciliation of funds:
Fund balances at 1 January 2023
9,918
11,072
Fund balances at 31 December 2023
16,810
9,918

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

SEEDFUND LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 6 -
2023
2022
Notes
£
£
£
£
Current assets
Cash at bank and in hand
17,194
10,278
Creditors: amounts falling due within one year
10
384
360
Net current assets
16,810
9,918
The funds of the charity
Unrestricted funds
16,810
9,918
16,810
9,918

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

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 in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees on 1 August 2024
Martin Fakley
Trustee
Company registration number 05829485 (England and Wales)
SEEDFUND LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
1
Accounting policies
Charity information

Seedfund Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Sovereign Place, Upper Northam Road, Hedge End, Hampshire, Southampton, SO30 4BB.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity'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)". The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the Board of Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Board of 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 Board of Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4
Incoming resources
Income is recognised when the charity 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.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Donations for a specific project are treated as restricted funds. All other donations are treated as unrestricted.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5
Resources expended

Expenditure is recognised on an accruals basis.

Governance costs are the costs associated with the governance arrangements of the charity which relate to the general running of the charity (as opposed to those costs associated with fundraising or charitable activity) and costs associated with constitutional and statutory requirements, and any costs associated with the strategic as opposed to day to day management of the charity’s activities.

SEEDFUND LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
1.6
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.

1.7
Financial instruments

The charity 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 charity's balance sheet when the charity 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.

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 charity’s contractual obligations expire or are discharged or cancelled.

2
Income from donations and legacies
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Donations and gifts
14,500
-
Unrestricted donations are received from members of Kings Community Church and other interested parties.
SEEDFUND LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
3
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Fundraising and publicity

IT and website development and support

188
786
4
Charitable activities
Grants and donations paid
Grants and donations paid
2023
2022
£
£
Grant funding of activities (see note 5)
7,000
-
Share of governance costs (see note 6)
420
368
7,420
368
5
Grants payable
Grants and donations paid
2022
2023
£
£
Grants to institutions:
Micro-enterprise fund in Burkina Faso
3,000
-
ARISE Zambia - Chicken Farming
4,000
-
7,000
-
SEEDFUND LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
6
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£

Accountancy

-
420
420
-
366
366

Bank charges and Companies House

-
-
-
-
2
2
-
420
420
-
368
368
Analysed between
Charitable activities
-
420
420
-
368
368
7
Board Of Trustees

None of the trustees (or any persons connected with them) received any remuneration or reimbursement of expenses during the year.

 

 

8
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
9
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

10
Creditors: amounts falling due within one year
2023
2022
£
£
Accruals and deferred income
384
360
SEEDFUND LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
11
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January 2023
Incoming resources
Resources expended
At 31 December 2023
£
£
£
£
General funds
9,918
14,500
(7,608)
16,810
Previous year:
At 1 January 2022
Incoming resources
Resources expended
At 31 December 2022
£
£
£
£
General funds
11,072
-
(1,154)
9,918
12
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £10.

13
Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

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