Charity registration number 1184638
Company registration number 11592194 (England and Wales)
GRANTA TRUST
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GRANTA TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Sigrid Rausing
Rana Dasgupta
George Prochnik
Charity number
1184638
Company number
11592194
Registered office
12 Addison Avenue
London
UK
W11 4QR
Auditor
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
GRANTA TRUST
CONTENTS
Page
Trustees' report
1 - 3
Statement of trustees' responsibilities
4
Independent auditor's report
5 - 7
Statement of financial activities
8
Summary income and expenditure account
9
Balance sheet
10
Notes to the financial statements
12 - 22
GRANTA TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The trustees present their annual report and financial statements 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 Trust's Articles, 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 Trust's objects are; the advancement of the literary arts, in particular the promotion of new and emerging writing and the advancement of education through the promotion of literary and literacy cultures.

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

Achievements and performance
Financial review

Trustees have reviewed the reserves policy in the light of the substantial donations received by the Trust in this accounting period.  These donations provide the Trust with an expendable endowment which will generate investment income to support the charitable activities.  It is the trustees’ intention that the capital should be preserved to maintain the level of investment income, but the capital is expendable in case of urgent and unforeseen need, and will allow the Trust’s current activities to be sustained while consideration is given to ways in which additional funds may be raised. Trustees therefore consider that reserves should be limited to an amount appropriate to the Trust’s working capital needs and have maintained this level of reserves throughout the year.

Investment Policy

Trustees reviewed the options available for investment of the expendable endowment and selected the CCLA’s Ethical Fund. Trustees receive regular reports from the CCLA and meet annually with its representative. Cash balances not immediately needed are placed on short term deposit when these are available at more than a notional rate of interest.

Risk management

The trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

 

Reserves policy

The Trustees have established the level of reserves that the charity ought to have. The funds are needed to:

The Trustees continue to monitor and review periodically the level of reserves in conjunction with the setting of annual budgets and the development of the long-term strategy to meet the targets of the charity. The charity's policy is to maintain adequate funds for its commitments for charitable projects in the publishing sector.

Plans for future periods

For the early years of the Trust's operations, trustees’ focus will be on oversight of the operating business, to satisfy themselves that it is operating effectively and in a way that fulfils the Trust’s charitable purposes. 

GRANTA TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Structure, governance and management

Granta Trust is a company limited by guarantee. It is governed by its Memorandum and Articles of Association.

 

Related Parties and Conflicts of Interest

None of the trustees received remuneration or other benefits for their work for the charity other than those disclosed in note 8 to the accounts. Any transactions between the Trust and the trustees or senior management or related parties must be disclosed to the Board.

 

Details of related party transactions are disclosed in note 22 to the accounts. Trustees are required to disclose all relevant interests and register them annually with the Trust’s administration, and in accordance with the Trust’s Conflict of Interest Policy to withdraw from decisions where a conflict of interest arises.

 

 

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:

Sigrid Rausing
Rana Dasgupta
George Prochnik

 

Details of method of recruitment and appointment of trustees

Trustees are appointed to the board on the basis of their skills and experience in either the literary or charitable field. Trustee appointments are for an initial period of three years.

Supplier Payment Policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the period end were equivalent to 31 days' purchases, based on the daily amount invoiced by suppliers during the period.

Details of organisational structure

Granta Trust employs eight staff to edit and sell the magazine, and to edit the poetry list.  Other functions, including contract administration, production, marketing and publicity, finance and IT are outsourced to Granta Publications, which charges for time spent on the Trust’s operations.  The day to day management of the operations of the Trust is overseen by the Executive Management Board, which reports regularly to trustees.

 

The Trustees consider that the Board of Trustees, the Editor and Deputy Editor comprise the key management  personnel of the charity in charge of directing and controlling the charity and its day to day operation.

Auditor

In accordance with the company's articles, a resolution proposing that Bright Grahame Murray be reappointed as auditor of the company will be put at a General Meeting.

Principal Office

The address of the principal office of the charity is 12 Addison Avenue, London, W11 4QR.

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

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

Sigrid Rausing
Trustee
16 September 2024
GRANTA TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The trustees, who are also the directors of Granta Trust 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 Trust 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:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.

 

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

GRANTA TRUST
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF GRANTA TRUST
- 5 -

Opinion

We have audited the financial statements of Granta Trust (the ‘Trust’) for the year ended 31 December 2023 which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, 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:

-

give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

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 Trust 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 Trust’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.

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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

GRANTA TRUST
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF GRANTA TRUST
- 6 -
Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Trust 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 Trust’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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which our procedures are 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 addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

 

 

 

 

GRANTA TRUST
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF GRANTA TRUST
- 7 -

Due 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. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with 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.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Brian Clifford (Senior Statutory Auditor)
for and on behalf of Bright Grahame Murray
Chartered Accountants
Statutory Auditor
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
16 September 2024

Bright Grahame Murray is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

GRANTA TRUST
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Unrestricted
Endowment
Total
Unrestricted
Endowment
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations, endowments and legacies
2
131,760
-
131,760
500,000
9,850,973
10,350,973
Charitable activities
3
776,390
-
776,390
538,549
-
538,549

Investments

4
264,771
-
264,771
134,267
-
134,267
Total income and endowments
1,172,921
-
1,172,921
1,172,816
9,850,973
11,023,789
Expenditure on:
Charitable activities
5
1,690,393
-
1,690,393
1,067,161
-
1,067,161
Net gains/(losses) on investments
11
-
811,780
811,780
-
(735,053)
(735,053)
Net (outgoing)/incoming resources before transfers
(517,472)
811,780
294,308
105,655
9,115,920
9,221,575
Gross transfers between funds
957,346
(957,346)
-
-
-
-
Net incoming/(outgoing) resources
439,874
(145,566)
294,308
105,655
9,115,920
9,221,575
Other recognised gains and losses
Other gains or losses
13
1,417
-
1,417
1,426
-
1,426
Net movement in funds
441,291
(145,566)
295,725
107,081
9,115,920
9,223,001
Fund balances at 1 January 2023
108,709
9,115,920
9,224,629
1,628
-
1,628
Fund balances at 31 December 2023
550,000
8,970,354
9,520,354
108,709
9,115,920
9,224,629

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

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

GRANTA TRUST
SUMMARY INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
All income funds
2023
2022
£
£
Gross income
1,172,921
1,172,816
Transfer from endowment funds
957,346
-
Total income in the reporting period
2,130,267
1,172,816
Total expenditure from income funds
1,690,393
1,067,161
Net income for the year
439,874
105,655
GRANTA TRUST
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
14,675
17,666
Investments
15
9,076,727
8,264,947
9,091,402
8,282,613
Current assets
Stocks
16
57,262
42,629
Debtors
17
264,524
429,244
Cash at bank and in hand
581,969
918,657
903,755
1,390,530
Creditors: amounts falling due within one year
18
(474,803)
(448,514)
Net current assets
428,952
942,016
Total assets less current liabilities
9,520,354
9,224,629
Net assets excluding pension liability
9,520,354
9,224,629
The funds of the Trust
Endowment funds
20
8,970,354
9,115,920
Unrestricted funds
550,000
108,709
9,520,354
9,224,629

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, although an audit has been carried out under section 144 of the Charities Act 2011.

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 under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

The financial statements were approved by the trustees on 16 September 2024
Sigrid Rausing
Trustee
Company registration number 11592194 (England and Wales)
GRANTA TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(593,944)
9,672,712
Investing activities
Purchase of tangible fixed assets
(7,515)
(7,090)
Purchase of investments
-
(9,000,000)
Investment income received
264,771
134,267
Net cash generated from/(used in) investing activities
257,256
(8,872,823)
Net cash used in financing activities
-
-
Net (decrease)/increase in cash and cash equivalents
(336,688)
799,889
Cash and cash equivalents at beginning of year
918,657
118,768
Cash and cash equivalents at end of year
581,969
918,657
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Charity information

Granta Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Addison Avenue, London, W11 4QR, UK.

1.1
Accounting convention

The financial statements have been prepared in accordance with the special provisions of the small companies regime, 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 Trust is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Trust. 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 trustees have a reasonable expectation that the Trust 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.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Trust.
1.4
Income
Income is recognised when the Trust 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.

Donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Trust 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.

Grant income is recognised as income when pre-agreed criteria, such as associated expenditure, has been met. Grant monies received where criteria has not yet been achieved is recognised as deferred income.

GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Expenditure

 

Recognition of Expenditure

 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Governance Costs

 

Includes staff time and expenses for time spent in connection with trustees meetings, plus the cost of audit and professional fees. Salary costs, where appropriate, are charged in accordance with time spent.

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:

Computers and Website costs
25-33% per annum

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.

1.7
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8
Impairment of fixed assets

At each reporting end date, the Trust 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).

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10
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.

GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
Financial instruments

The Trust 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 Trust's balance sheet when the Trust 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 Trust’s contractual obligations expire or are discharged or cancelled.

1.12
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 Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Donations and legacies
Unrestricted
Unrestricted
Endowment
Total
funds
funds
funds
general
2023
2022
2022
2022
£
£
£
£
Donations and gifts
103,740
500,000
9,850,973
10,350,973

British Council Grant

28,020
-
-
-
131,760
500,000
9,850,973
10,350,973
Donations and gifts
The Hans and Märit Rausing Charitable Trust
-
500,000
6,103,451
6,603,451
Other donations
103,740
-
3,747,522
3,747,522
103,740
500,000
9,850,973
10,350,973

Endowments represent expendable endowments designated to the Trust by the trustees during the year, which are intended to provide a future income stream to underwrite the main magazine publishing activities of the charity.

 

Included in other donations are amounts gifted from an organisation connected to a trustee.

3
Income from charitable activities
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Sales within charitable activities
654,264
538,549
Writing courses provided
122,126
-
776,390
538,549
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Income from investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Dividends received

260,407
131,778
Interest receivable
4,364
2,489
264,771
134,267
5
Charitable activities

Magazine publication

 

Grant Making

 

Charitable expenditure

Total
2023

Magazine publication

 

2023
2023
2023
2022
£
£
£
£
£
Staff Costs
582,285
-
-
582,285
436,534
Depreciation
10,506
-
-
10,506
21,743
Production Costs
217,880
-
-
217,880
117,735
Contributor Fees
116,730
-
-
116,730
135,742
Distribution Costs
282,624
-
-
282,624
202,574
Poetry Costs
7,288
-
-
7,288
4,243
Marketing Costs
94,563
-
-
94,563
26,610
Website Cost
40,192
-
-
40,192
37,023
Office Supplies Costs
58,610
-
-
58,610
25,679
Professional Fees
8,949
-
-
8,949
19,900
Computer Running Costs
7,044
-
-
7,044
2,037
Overhead Costs
44,006
-
-
44,006
41,406

Bad Debt expense

29,280
-
-
29,280
(12,490)

British Council Grant costs

28,020
-
-
28,020
-

Writing Academy Course costs

-
-
94,053
94,053
-
1,527,977
-
94,053
1,622,030
1,058,736
Grant funding (note 6)
-
59,313
-
59,313
-
Governance costs (note 7)
9,050
-
-
9,050
8,425
1,537,027
59,313
94,053
1,690,393
1,067,161
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
6
Grants payable
Cultural grants
2023
£
Grants to institutions:
Granta Publications
49,313
The Charlestone Trust
10,000
59,313

Granta Trust has made a total of three grants during the year ended 31 December 2023, two being to Granta Publications.

7
Support costs allocated to activities
2023
2022
£
£
Basis of allocation
Audit fees
Governance
9,050
8,425
Analysed between:
Charitable activities
9,050
8,425
8
Net movement in funds
2023
2022
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
9,050
8,425
Depreciation of owned tangible fixed assets
10,506
21,743
9
Trustees

During the year a trustee provided consultancy services to the Trust amounting to £7,114 (2022: £6,061).

During the year, no remuneration or benefits were received by trustees and key management personnel for their services to the charity.

10
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Administrative
9
8
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Employees
(Continued)
- 18 -
Employment costs
2023
2022
£
£
Wages and salaries
554,105
414,119
Other pension costs
28,180
22,415
582,285
436,534
The number of employees whose annual remuneration was more than £60,000 is as follows:
2023
2022
Number
Number
£60,001 to £70,000
1
1
£90,001 to £100,000
1
-
11
Gains and losses on investments
Endowment
Endowment
funds
funds
2023
2022
Gains/(losses) arising on:
£
£
Revaluation of investments
811,780
(735,053)
12
Taxation

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

13
Other gains and losses
Unrestricted
Unrestricted
funds
funds
2023
2022
Gains/(losses) upon:
£
£
Foreign exchange
(1,417)
(1,426)
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
14
Tangible fixed assets
Computers and Website costs
£
Cost
At 1 January 2023
234,950
Additions
7,515
At 31 December 2023
242,465
Depreciation and impairment
At 1 January 2023
217,284
Depreciation charged in the year
10,506
At 31 December 2023
227,790
Carrying amount
At 31 December 2023
14,675
At 31 December 2022
17,666
15
Fixed asset investments

Listed investments

£
Cost or valuation
At 1 January 2023
8,264,947
Valuation changes
811,780
At 31 December 2023
9,076,727
Carrying amount
At 31 December 2023
9,076,727
At 31 December 2022
8,264,947
16
Stocks
2023
2022
£
£
Magazines
57,262
42,629
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
49,482
82,209
Other debtors
199,479
326,004
Prepayments and accrued income
15,563
21,031
264,524
429,244
18
Creditors: amounts falling due within one year
2023
2022
£
£
Other taxation and social security
13,180
14,292
Trade creditors
28,191
69,210
Other creditors
399,583
331,144
Accruals and deferred income
33,849
33,868
474,803
448,514

Included in Trade creditors is £21,980 (2022: £nil) deferred income from the British Council Grant.

 

Included within Other Creditors is £253,745 (2022: £237,007) of deferred subscription income.

 

Accruals and deferred income includes £10,240 (2022: £nil) of deferred income for writing courses.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,180
22,415

The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund.

20
Endowment funds

Endowment funds represent assets which must be held permanently by the Trust. Income arising on the endowment funds can be used in accordance with the objects of the Trust and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

At 1 January 2023
Incoming resources
Transfers
Gains and losses
At 31 December 2023
£
£
£
£
£
Permanent endowments
9,115,920
-
(957,346)
811,780
8,970,354
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Endowment funds
(Continued)
- 21 -
Previous year:
At 1 January 2022
Incoming resources
Transfers
Gains and losses
At 31 December 2022
£
£
£
£
£
Permanent endowments
-
9,850,973
-
(735,053)
9,115,920
21
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
Transfers
Gains and losses
At 31 December 2023
£
£
£
£
£
£
General funds
108,709
1,172,921
(1,690,393)
957,346
1,417
550,000
Previous year:
At 1 January 2022
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 December 2022
£
£
£
£
£
£
General funds
1,628
1,172,816
(1,067,161)
-
1,426
108,709
22
Analysis of net assets between funds
Unrestricted
Endowment
Total
funds
funds
2023
2023
2023
£
£
£
At 31 December 2023:
Tangible assets
14,675
-
14,675
Investments
-
9,076,727
9,076,727
Current assets/(liabilities)
(422,021)
850,973
428,952
(407,346)
9,927,700
9,520,354
Per balance sheet
550,000
8,970,354
9,520,354
Balance to allocate
957,346
(957,346)
-
GRANTA TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Analysis of net assets between funds
(Continued)
- 22 -
Unrestricted
Endowment
Total
funds
funds
2022
2022
2022
£
£
£
At 31 December 2022:
Tangible assets
17,666
-
17,666
Investments
-
8,264,947
8,264,947
Current assets/(liabilities)
91,043
850,973
942,016
108,709
9,115,920
9,224,629
23
Related party transactions

Grants of £49,313 have been made to Granta Publications, a company under common control by virtue of the ultimate controlling party.

 

Donations received from related parties are disclosed in note 2.

 

The ultimate controlling party is a member of the trustees of Granta Trust.

 

24
Cash generated from operations
2023
2022
£
£
Surplus for the year
294,308
9,221,575
Adjustments for:
Investment income recognised in statement of financial activities
(264,771)
(134,267)
Foreign exchange differences
1,417
1,426
Fair value (gains) and losses on investments
(811,780)
735,053
Depreciation and impairment of tangible fixed assets
10,506
21,743
Movements in working capital:
(Increase) in stocks
(14,633)
(8,293)
Decrease/(increase) in debtors
164,721
(170,371)
Increase in creditors
26,289
5,845
Cash (absorbed by)/generated from operations
(593,943)
9,672,711
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