REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Reference and Administrative Details | 1 |
Report of the Trustees | 2 | to | 6 |
Report of the Independent Auditors | 7 | to | 9 |
Statement of Financial Activities | 10 |
Statement of Financial Position | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 14 | to | 28 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
REFERENCE AND ADMINISTRATIVE DETAILS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
TRUSTEES |
REGISTERED OFFICE |
REGISTERED COMPANY NUMBER |
REGISTERED CHARITY NUMBER |
AUDITORS |
6 Manor Park Business Centre |
Mackenzie Way |
Cheltenham |
Gloucestershire |
GL51 9TX |
BANKERS |
SOLICITORS | Todmans SRE |
Barringtons, Hockley Rd |
Rayleigh, Essex, SS6 8EH |
Devonshires LLP |
30 Finsbury Circus |
London, EC2M 7DT |
SENIOR MANAGEMENT TEAM | A Macdonald (appointed 1.7.23) |
Chief Executive |
H Hamlyn (resigned 12.7.23) |
Site Manager |
Catherine Cavanagh (appointed 29.2.24) |
General Manager |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED (REGISTERED NUMBER: 03376501) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 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 31 December 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). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
Aspirations for 2023 had to be curtailed when the severe financial constraints suffered throughout the country adversely impacted the financial support available to us and budgets had to be trimmed accordingly. The plan for 2023 had been to build on 2022 season, continue to open on Sundays and invest in capital projects. However, reduced operating budgets impacted on staffing levels, and capital projects. We continued to market the education programme to schools. Holiday activities, walking tours and other low cost/no cost activities were offered. A joint venture was entered into as a possible route to extend our offering, but did not deliver as expected. |
The highlight of the year was approval from the National Heritage Memorial Fund in March to commit to substantial repair work in the Grade 1 listed L157 Incorporating Mill building with their generous funding assistance of £420,575. The award was made in March 2023 but only £63,927 was receivable in the 2023 financial year due to delays in starting the project; the balance will be receivable in the 2024 financial year and the project is expected to complete in September. |
The charitable company is associated with The Waltham Abbey Royal Gunpowder Mills Charitable Foundation, a charitable foundation established to raise funds and manage an endowment for the long-term development and management of the Waltham Abbey site. The charitable company receives donations from the Foundation to enable it to carry out its functions. The Corporate Trustee of The Waltham Abbey Royal Gunpowder Mills Charitable Foundation is The Waltham Abbey Royal Gunpowder Mills Charitable Foundation Limited, also the sole member of The Waltham Abbey Royal Gunpowder Mills Company Limited. |
Volunteers |
Volunteer numbers during 2023 were approximately 100 generating 8499 hours compared to 2022 - 10,176 hours. Covid opening restrictions resulted in 2021 volunteer hours of only 5737. Our volunteers are valued and valuable and the Trustees are grateful for their enthusiasm and commitment to the site. A 2024 objective is to increase volunteer levels. |
Public Benefit |
In shaping the Charitable Company's work, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance on public benefit and fee charging. In addition to any grants received, the Charitable Company relies upon the income from admission fees and charges to cover its operating costs. In setting the level of admission fees, school programme charges, and concessions the trustees give careful consideration to the accessibility of the site for children and those on low incomes. |
The entrance price has been maintained at the 2022 rate. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED (REGISTERED NUMBER: 03376501) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
The site opened to the public at Easter 2023 and the company's principal objective was to reestablish the site as a well-run and interesting visitor attraction that attracted 150 visitors on open days. These numbers proved to be over optimistic. Investigations across the visitor attraction sector indicated that this continues to be a national not local problem. |
We were keen to restore our reputation with schools as a value for money school trip which met the needs of the school curriculum while also providing an on line offering for schools unable to travel to the site and a third-party school visiting option. The programme now includes Gunpowder, Rocketry and the Royal Gunpowder Mills itself. |
Property rentals were slightly above budget. Filming rentals were disappointing after a buoyant 2022, which the industry attributed to general financial constraints and the increased cost of borrowing. |
FINANCIAL REVIEW |
Financial position |
The net income for the period is detailed on page 10 in the Statement of Financial Activities. |
During the year the charitable company received unrestricted funds of £301,175 from the Waltham Abbey Royal Gunpowder Mills Charitable Foundation ("the Foundation"), as well as £22,000 in restricted funds for projects, making a total grant of £323,175. |
The site was closed to the public from January until Easter 2023 and from October 2023 to the end of the year. The shorter opening period meant that income from general admission fees fell compared to 2022. Filming income also fell as a consequence of the general slowdown in commissioning activity by streaming services as their subscription revenue dropped. Towards the end of the year there were signs that activity would pick up for 2024 but this is clearly a volatile income stream although beneficial. There was some success in building our functions and corporate hire income to compensate but these smaller-revenue activities are more time-consuming to manage. In addition, we had additional costs from rising energy bills and for security to try to prevent intruders to the site following damage to some of our buildings from vandals; a claim was made against our insurance for this which was pending during 2023 and settled in June 2024. The great bulk of the charity's costs are fixed costs to do with security and maintenance of our 175 acre site, and there are no realistic ways to reduce this when income falls. |
A material error was identified in FY23 that related to FY22 and affected the opening reserves. This is disclosed and the financial impact within note 15 to the financial statements. |
Investment policy and objectives |
Under the Memorandum and Articles of Association, the Charitable Company has the power to make any investment which the trustees may think fit. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED (REGISTERED NUMBER: 03376501) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FINANCIAL REVIEW |
Reserves policy |
Before the beginning of every year the directors and trustees carry out a detailed review of the Charitable Company's activities and produce income and expenditure budgets and cash flow forecasts for the ensuing year. Monthly management accounts and cash flow forecasts are prepared and actual performance against the budgets are monitored by the directors and trustees at Board meetings. |
There were free reserves available at 31 December 2023 as demonstrated by net current assets of £34,501. The Charitable Company relies on the grants from the Foundation to fund its operating deficit. Monies are received from the Foundation on a cash-flow basis during the year, as needed, up to a sum determined by the annual budget which receives review and final approval by the Foundation. To date, deficit grant funding received to the end of August 2024 stands at £131,816 and development/capital grant funding received to the end of August 2024 stands at £61,307. |
The Foundation has confirmed it will continue funding for at least 12 months commencing 1 September 2024 for the next year. |
FUTURE PLANS |
Rosanna Lawes joined the Company Board in March 2023 to speed the development of a solution from the Joint Project Board. In June, Andrew Macdonald was appointed as Chief Executive Officer and he has assisted Rosanna in the work of the Joint Project Board in meeting stakeholders and sharing outline plans for the future with stakeholders and assess their level of support. |
In the autumn, the Trustees began tentative conversations with the Foundation about merging both charities to improve effectiveness in achieving charitable objectives and conserving and protecting the site. Legal advice was sought on how this might be achieved. Four models were explored at length and major supporters such as NHLF were consulted for their views on our proposed direction of travel. By January 2024 the Foundation had appointed Farrer & Co to conduct Due Diligence on the Operating Company on their behalf. In March 2024 the Operating Company received independent legal advice confirming that it was within their power to take the decision to merge with another charity if they believed it to be in the best interest of the charity. This decision was duly made. A working party with members from each charity began to meet in April 2024 with a plan of actions required to facilitate a merger. The group meets regularly and has an estimated end of 2024 for the completion of all identified actions and a move to one united charity with care and control of the site and its endowment. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Constitution |
The Waltham Abbey Royal Gunpowder Mills Company Limited is currently limited by guarantee (company number 3376501) and is a registered charity (number 1062968). Its governing document is the Memorandum and Articles of Association. |
A Special Resolution was passed in October 2021 and revised Memorandum and Articles of Association was adopted to take account of the changes in governance arrangements with the Foundation. A further Special Resolution was passed in March 2023 and revised Memorandum and Articles of Association to take account account of trustee governance changes. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED (REGISTERED NUMBER: 03376501) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Recruitment and appointment of new trustees |
The Sole Member of the Charitable Company is The Waltham Abbey Royal Gunpowder Mills Charitable Foundation Limited. |
The number of trustees shall not be less than two and not more than 20. Sadly, we have lost 4 Trustees during 2023 through a combination of new jobs, ill health and a further retirement early in 2024. As the Charity is currently undertaking a governance review, Trustee recruitment has been put on hold until later in 2024 when requirements for the future will be clearer. |
As set out in the Articles of Association, at every Annual General Meeting one quarter of the directors and trustees retire by rotation and may if willing to act be reappointed. The 2024 AGM will be held in during the autumn. The Articles state that the Chairman of The Waltham Abbey Royal Gunpowder Mills Charitable Foundation Limited shall always be a Director and Trustee by virtue of his office. The Chairman of the Friends or Supporters Association established to support The Waltham Abbey Royal Gunpowder Mills Company Limited is a director and trustee per the Articles. The Articles state that each of the organisations; Essex County Council, Lee Valley Regional Park Authority, Epping Forest District Council and Waltham Abbey Town Council may appoint a Trustee to attend Board Meetings. |
Organisational structure |
The board of directors and trustees which meets regularly to administer the Charitable Company. Day-to-day operations of the Charitable Company are managed by a permanent staff of 3.8 FTE supported by casual employees and volunteers. |
The trustees delegate day-to-day management of the charitable company to the Chief Executive Officer. |
Current Trustees |
The current Trustees ae listed below: |
Fiona Baxter, Grahame Browne, Rosanna Lawes, Andrew McIver, Mark Pemberton, James Richardson, |
Recruitment, induction and training trustees |
A review of current and future trustee skill requirements is currently underway. When clarity about skill gaps is identified a recruitment drive will commence and will have due regard to trustee diversity. It is anticipated that as in the past, trustee induction training will be provided at the point of recruitment |
Key management remuneration |
The trustees and the Chief Executive Officer comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day-to-day basis. All trustees are unpaid. |
Principal risks and uncertainties |
The trustees take risks very seriously in managing a site with many hazards. The principal risk to our activities has for some time been viewed as the uncertainty of future funding for conservation and preservation partly because of a lack of a cohesive approach from the Operating Company and the Foundation. The development of a new charity combining responsibility for both the endowment and site operations will remove this concern and open the path to access further external fund raising. |
Work with a large group of Stakeholders took place in June 2024 to identify opportunities to raise funds and identify potential solutions to some of our difficulties. Visitor headcount is significantly below the pre COVID level and is being addressed by a far-reaching reimagining project supported by the National Lottery Heritage Fund under their Resilience Fund programme. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED (REGISTERED NUMBER: 03376501) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of The Waltham Abbey Royal Gunpowder Mills Company Limited for the purposes of company law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
In so far as the trustees are aware: |
- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
AUDITORS |
The auditors, BK Plus Audit Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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 |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
Opinion |
We have audited the financial statements of The Waltham Abbey Royal Gunpowder Mills Company Limited (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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, including its income and expenditure, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. |
Responsibilities of trustees |
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company'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. |
Our responsibilities for the audit of the financial statements |
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 a Report of the Auditor that includes our opinion. Reasonable assurance is a high level of assurance, but it 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. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that, despite us planning and performing our audit in accordance with auditing standards, one or more material misstatements in the financial statements may have gone undetected by our audit. As with any audit, there is a risk that irregularities and fraud will go undetected where they involve matters such as misrepresentations from management, collusion, deliberate omissions and override of controls. It is not the role of the auditor to prevent non-compliance and we cannot be expected to detect every instance of non-compliance with all laws and regulations. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | enquiries of management including a pre audit meeting; |
- | obtaining and reviewing supporting documentation of policies concerning the laws and regulations applicable to the business; |
- | understanding how the charitable company complies with its regulatory framework by making enquiries of management ; |
- | considering the culture inherent in the charitable company and whether this represents a culture of honesty and ethical behaviour with a strong emphasis of detection and prevention of fraud. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
Auditors' responsibilities for the audit of the financial statements - continued |
We assessed the susceptibility of the charitable company's financial statements to material misstatement and considered how fraud might occur. The audit procedures performed included, but were not limited to: |
- | challenging management assumptions and estimates; |
- | identifying and testing unusual journal entries; |
- | assessing how the relevant laws and regulations have been complied with and noting any instances of non compliance; |
- | reviewing the financial statements for compliance with relevant Accounting Standards and accounting legislation applicable to a smaller company; |
- | considering how those charged with governance have addressed the possibility of an override of essential controls or other influence over the financial reporting processes. |
In addition, we also considered other non financial laws relevant to the charitable company. These do not necessarily have a direct influence on the financial statements but might affect the charity's ability to operate. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. |
Use of our report |
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Mackenzie Way |
Cheltenham |
Gloucestershire |
GL51 9TX |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
STATEMENT OF FINANCIAL ACTIVITIES |
(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
as restated |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 4 |
Charitable activities | 6 |
Other trading activities | 5 |
Total |
EXPENDITURE ON |
Commercial trading operation costs | 7 |
Charitable activities | 8 |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
As previously reported |
Prior year adjustment | 15 | ( |
) | ( |
) |
As restated |
TOTAL FUNDS CARRIED FORWARD | 4,317,838 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED (REGISTERED NUMBER: 03376501) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 16 |
CURRENT ASSETS |
Stocks | 17 |
Debtors | 18 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 19 | ( |
) | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 22 |
Unrestricted funds | 4,295,816 |
Restricted funds | 22,022 |
TOTAL FUNDS | 4,317,838 |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (46,795 | ) | 8,260 |
Net cash (used in)/provided by operating activities | (46,795 | ) | 8,260 |
Change in cash and cash equivalents in the reporting period |
(46,795 |
) |
8,260 |
Cash and cash equivalents at the beginning of the reporting period |
2 |
43,449 |
35,189 |
Cash and cash equivalents at the end of the reporting period |
2 |
(3,346 |
) |
43,449 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Net expenditure for the reporting period (as per the Statement of Financial Activities) |
(100,191 |
) |
(181,904 |
) |
Adjustments for: |
Depreciation charges | 160,614 | 164,155 |
Decrease/(increase) in stocks | 682 | (880 | ) |
Increase in debtors | (107,125 | ) | (23,174 | ) |
(Decrease)/increase in creditors | (775 | ) | 50,063 |
Net cash (used in)/provided by operations | (46,795 | ) | 8,260 |
2. | ANALYSIS OF CASH AND CASH EQUIVALENTS |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Cash in hand | 977 | 1,229 |
Notice deposits (less than 3 months) | 8,871 | 42,220 |
Overdrafts included in bank loans and overdrafts falling due within one year |
(13,194 |
) |
- |
Total cash and cash equivalents | (3,346 | ) | 43,449 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 43,449 | (33,601 | ) | 9,848 |
Bank overdrafts | - | (13,194 | ) | (13,194 | ) |
43,449 | (46,795 | ) | (3,346 | ) |
Total | 43,449 | (46,795 | ) | (3,346 | ) |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | CHARITY INFORMATION |
The Charity is a company limited by guarantee (company number: 3376501 England and Wales) and a charity registered with the Charity Commission in England and Wales (charity number: 1062968). The registered office is The Waltham Abbey Royal Gunpowder Mills Company Limited, Column House, London Road, Shrewsbury, Shropshire, SY2 6NN. |
2. | 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. |
Going concern |
The Charity prepared its budgets for the financial year to 31 December 2024 with an operational deficit of £192,000 and £147,000 to fund capital and other special projects. In May a reforecast of the budget was prepared which projected an operating deficit of £215,514. Projections have also been prepared for the 9 month period ending 30 September 2025 that show an operational deficit of £143,441 (in addition to Special Project funding budgeted at £66,000). As set out in note 24 to these financial statements, the Charity, as in previous years, is reliant upon the continued support of The Waltham Abbey Royal Gunpowder Mills Foundation ("The Foundation") to provide discretionary funds to make good operational deficits. |
The Foundation and the Operating Company have taken the decision in principle to merge and create one single charity with responsibility for all aspects of the site, a process which is planned to complete by 31 December 2024. Notwithstanding this decision the Foundation has provided written confirmation of financial support for the period to the end of September 2025, thus a minimum of 12 months post approval of the FY23 financial statements. |
There is no indication that The Foundation will not provide financial support towards the operational deficit beyond 30 September 2025 should the merger of the charities not take place. As a result of these commitments, the Board of the Charity considers the Charitable Company to be a going concern and has prepared these financial statements on that basis. |
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. |
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. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Expenditure |
Allocation and apportionment of costs |
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. |
The Board of Trustees reviewed the split of costs during the year ended 31 December 2023 and have compared against the 2022 figures accordingly. In particular, Governance costs (Support) were reviewed in line with the SORP and it was agreed to include 10% of the accountancy fees (2022: 10%) (in relation to year end procedures) and 100% of the audit costs (2022: 100%). |
The Board of Trustees considers the allocation of costs in proportion of Admissions income compared to Retail income for the year under review. For the year to 31 December 2023, Admissions income was calculated as 99% (2022: 87%) and Retail income 1% (2022: 13%). This split is then applied to Retail (Commercial Trading Operation Costs) and the Heritage Site, after considering if any of the expenditure falls within the SORP guidance for 'Governance'. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Long leasehold | - |
Exhibition costs | - |
Plant and machinery | - |
For the years up to 31 December 2021, individual fixed asset additions costing £1,250 or less were not capitalised unless they were part of a specific project or exhibition and the total expenditure exceeded £1,250 overall. |
For FY22 (and all future years), the directors have considered and revised the internal capitalisation policy. Accordingly, all expenditure commencing 1 January 2022 is now written off to the Statement of Financial Activities as incurred, regardless of individual or project spend. |
For the reasons stated in note 27, the historic exhibits owned by the charity have not been capitalised. |
Cash at bank and in hand |
Cash at bank includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. |
Financial instruments |
The Charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. |
Stocks |
Stock is included at the lower of cost or net realisable value. |
Taxation |
The charitable company is exempt from corporation tax on its charitable activities. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Fund accounting |
Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objectives of the charitable company. |
Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for these purposes is charged to the restricted fund. |
Debtors |
Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. |
Pensions |
The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Charitable Company's accounting policies, the directors/trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of Estimation Uncertainty |
Depreciation |
Depreciation of tangible fixed assets is based on the Charity's judgement of their useful economic lives and residual values. |
The depreciation rates used are disclosed in the tangible fixed asset accounting policy within note 2 and the carrying value of the assets is disclosed in note 16. |
Allocation and apportionment of costs |
Costs are allocated based on the percentage split of Income between 'Admissions' and 'Retail' for FY23 and split across the various Activities of the charity. Further information is disclosed within note 2. |
Recognition of grant income |
Where entitlement to grant income is subject to performance conditions income is recognised as the performance conditions are met. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | DONATIONS AND LEGACIES |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Donations |
Grants from Waltham Abbey Royal Gunpowder Mills Charitable Foundation |
5. | OTHER TRADING ACTIVITIES |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Commercial trading operations | 438 | 5,512 |
6. | INCOME FROM CHARITABLE ACTIVITIES |
31.12.23 | 31.12.22 |
as | restated |
Activity | £ | £ |
Admission fees |
Operation of Waltham Abbey Royal Gunpowder Mills |
24,973 |
33,787 |
Grants |
Operation of Waltham Abbey Royal Gunpowder Mills |
63,927 |
4,000 |
Filming Rights etc | Miscellaneous income | 138,242 | 227,646 |
Included above under the Activity 'Miscellaneous income' is the following: |
31.12.23 |
31.12.22 |
£ | £ |
Filming Rights | 10,261 | 141,791 |
Room Rental income (other) | 59,735 | 50,656 |
Insurance claim proceeds | 35,650 | 32,025 |
Functions | 22,454 | 2,448 |
Sale of vehicles | 3,100 | - |
Corporate hospitality etc | 6,530 | 726 |
Sale of deer | 512 | - |
138,242 | 227,646 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | INCOME FROM CHARITABLE ACTIVITIES - continued |
Grants received, included in the above, are as follows: |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Epping Forest District Council | - | 4,000 |
National Heritage Memorial Fund (NHMF) | 63,927 | - |
63,927 | 4,000 |
7. | COMMERCIAL TRADING OPERATION COSTS |
Commercial trading operation costs |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Staff costs |
Insurance |
Retail supplies | 1,602 | 2,301 |
Estate and establishment costs | - | 25,401 |
3,059 | 55,911 |
8. | CHARITABLE ACTIVITIES COSTS |
Direct | Support |
Costs (see | costs (see |
note 9) | note 10) | Totals |
£ | £ | £ |
Costs of Operation of Waltham Abbey Royal Gunpowder Mills |
621,594 |
31,634 |
653,228 |
9. | DIRECT COSTS OF CHARITABLE ACTIVITIES |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Staff costs | 152,577 | 160,418 |
Insurance | 31,766 | 26,298 |
Marketing | 453 | 9,148 |
Estate costs | 177,041 | 168,169 |
Special Projects - Building L157 NHMF | 72,143 | 18,356 |
Consultancy costs: Interim Manager | 27,000 | - |
Depreciation | 160,614 | 164,155 |
621,594 | 546,544 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | SUPPORT COSTS |
Heritage | Governance |
Retail | site | costs | Totals |
£ | £ | £ | £ |
Costs of Operation of Waltham Abbey Royal Gunpowder Mills |
102 |
23,528 |
8,004 |
31,634 |
Support costs, included in the above, are as follows: |
Retail |
31.12.23 | 31.12.22 |
as | restated |
Costs of |
Operation |
of |
Waltham |
Abbey |
Royal |
Gunpowder | Total |
Mills | activities |
£ | £ |
Accountancy fees | 102 | 1,636 |
General office | - | 1,160 |
102 | 2,796 |
Heritage site |
31.12.23 | 31.12.22 |
as | restated |
Costs of |
Operation |
of |
Waltham |
Abbey |
Royal |
Gunpowder | Total |
Mills | activities |
£ | £ |
Accountancy fees | 12,529 | 10,828 |
Legal and professional fees | 3,983 | 40,508 |
General office | 7,016 | 7,680 |
23,528 | 59,016 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | SUPPORT COSTS - continued |
Governance costs |
31.12.23 | 31.12.22 |
as | restated |
Costs of |
Operation |
of |
Waltham |
Abbey |
Royal |
Gunpowder | Total |
Mills | activities |
£ | £ |
Auditors' remuneration | 6,600 | 5,168 |
Accountancy fees | 1,404 | 1,459 |
8,004 | 6,627 |
11. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Auditors' remuneration | 6,600 | 5,168 |
Depreciation - owned assets |
12. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | STAFF COSTS |
2023 | 2022 |
£ | £ |
Wages and salaries | 144,755 | 171,463 |
Social security costs | 6,413 | 8,938 |
Other pension costs | 2,866 | 4,253 |
154,034 | 184,654 |
No employee earned more than £60,000 per annum (2022: £nil). |
The Key Management Personnel of the Charity are considered to be the Site Manager and the | Chief Executive Officer (who is remunerated through the Foundation). The total remuneration of key management personnel was £49,616 (2022: £40,107). |
The average monthly number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
as | restated |
Administration and Operations |
14. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | funds | funds |
as restated |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Other trading activities |
Total |
EXPENDITURE ON |
Commercial trading operation costs |
Charitable activities |
Total |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted | Restricted | Total |
funds | funds | funds |
as restated |
£ | £ | £ |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 4,481,710 | 18,032 |
TOTAL FUNDS CARRIED FORWARD | 4,295,816 | 22,022 | 4,317,838 |
15. | PRIOR YEAR ADJUSTMENT |
A prior year adjustment has been made to correct the balances in accruals, expenditure and funds. |
Note 19: Creditors falling due within one year has been increased by £18,356 to represent an unrecognised accrual relating to legal costs for the L157 project. |
Expenditure in notes 8 and 9 has also been increased by £18,356 to recognise the accrual. |
This has the effect of decreasing the unrestricted fund balances at 31 December 2022 by £18,356 compared to the original published financial statements in September 2023. |
16. | TANGIBLE FIXED ASSETS |
Long | Exhibition | Plant and |
leasehold | costs | machinery | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | STOCKS |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Finished goods |
18. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Bank loans and overdrafts (see note 20) |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expenses |
Deferred income | 8,831 | 7,287 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Amounts falling due within one year on demand: |
Bank overdrafts |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
as | restated |
£ | £ |
Within one year |
Between one and five years |
22. | MOVEMENT IN FUNDS |
Prior | Net | Transfers |
year | movement | between | At |
At 1.1.23 | adjustment | in funds | funds | 31.12.23 |
£ | £ | £ | £ | £ |
Unrestricted funds |
General fund | 4,314,172 | (18,356 | ) | (107,440 | ) | - | 4,188,376 |
Restricted funds |
Fire Alarm Upgrades | 12,022 | - | (6,010 | ) | - | 6,012 |
WARGM Friends Association |
10,000 |
- |
(4,559 |
) |
- |
5,441 |
Building L157 - National Heritage Memorial Fund |
- |
- |
(4,182 |
) |
3,343 |
(839 |
) |
Match Funding from Foundation for L157 project |
- |
- |
22,000 |
(3,343 |
) |
18,657 |
22,022 | - | 7,249 |
TOTAL FUNDS | (18,356 | ) | (100,191 | ) | 4,217,647 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 470,169 | (577,609 | ) | (107,440 | ) |
Restricted funds |
Fire Alarm Upgrades | - | (6,010 | ) | (6,010 | ) |
WARGM Friends Association | - | (4,559 | ) | (4,559 | ) |
Building L157 - National Heritage Memorial Fund |
63,927 |
(68,109 |
) |
(4,182 |
) |
Match Funding from Foundation for L157 project |
22,000 |
- |
22,000 |
( |
) | 7,249 |
TOTAL FUNDS | ( |
) | (100,191 | ) |
Comparatives for movement in funds |
Net |
movement | At |
At 1.1.22 | in funds | 31.12.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 4,481,710 | (185,894 | ) | 4,295,816 |
Restricted funds |
Fire Alarm Upgrades | 18,032 | (6,010 | ) | 12,022 |
WARGM Friends Association | - | 10,000 | 10,000 |
18,032 | 3,990 | 22,022 |
TOTAL FUNDS | 4,499,742 | (181,904 | ) | 4,317,838 |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | MOVEMENT IN FUNDS - continued |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 478,990 | (664,884 | ) | (185,894 | ) |
Restricted funds |
Fire Alarm Upgrades | - | (6,010 | ) | (6,010 | ) |
WARGM Friends Association | 10,000 | - | 10,000 |
10,000 | (6,010 | ) | 3,990 |
TOTAL FUNDS | 488,990 | (670,894 | ) | (181,904 | ) |
Nature and purpose of Restricted Funds |
Fire Alarm Upgrades |
New Fire Alarm System installed at Waltham site in December 2019. |
WARGM Friends Association |
A donation was received for £10,000 from Waltham Abbey Royal Gunpowder Mills Friends Association (Registered Charity 1115237) in June 2022, £6,000 specifically towards buying new or refurbished playground equipment and the balance of £4,000 to be approved by the trustees of the WARGM Friends Association when to be utilised on specific projects. |
Building L157 - National Heritage Memorial Fund / Match funding from Foundation for L157 project |
A grant for the repair and conservation of Building L157. The grant funded percentage is 95.03% with the balance match funded by the Waltham Abbey RGM Foundation. The match funded amount is being released in line with the installments received from NHMF. |
Transfers between funds |
Transfers are made between restricted and unrestricted funds at the end of every accounting period in cases where:- |
(i) | The activity of the restricted fund has come to an end and there is an unspent balance that is not repayable to the funder(s), when the surplus is transferred to unrestricted funds; and |
(ii) | the restricted fund is in deficit and has either come to an end or there is no prospect of a surplus in a later period, which the deficit is eliminated by transfer from unrestricted funds. |
(iii) | to transfer the value of tangible fixed assets from restricted to unrestricted funds when the asset has been purchased from a restricted fund donation but is held for a general and not a restricted purpose. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | CONTINGENT LIABILITIES |
Various funders retain the right to claw back grants should the use of funds not be in accordance with the terms of the grant. In the opinion of the trustees no such liability exists at the year-end. |
24. | RELATED PARTY DISCLOSURES |
The Charitable Company is related to The Waltham Abbey Royal Gunpowder Mills Charitable Foundation Limited, trustee of The Waltham Abbey Royal Gunpowder Mills Charitable Foundation ("the Foundation"), by virtue of a Management Agreement (for shared central services) and a Lease Agreement for the occupation of the Waltham Abbey site. |
C M Pemberton and R Lawes are directors and trustees of both the Charitable Company and the Foundation. |
The Charitable Company received donations from the Foundation of £323,175 (2022: £202,638) to support the development and management of the site and buildings at Waltham Abbey in accordance with the charitable objects of both the Charitable Company and the Foundation. |
In addition, the Foundation made an expression of financial support to the Charitable Company, that is not binding on the Foundation. The commitment by the Foundation is an intention to spend and is not included in the financial statements as at 31 December 2023. The commitment at 31 December 2023 was £192,000 (2022: £178,079) to develop and manage the Waltham Abbey site, all payable within one year and £147,000 (2022: £111,000) to fund Capital / Other Projects (exceptional expenditure). Additional funding is applied for and approved for additional intended purposes throughout 2024 where no commitment existed at 31 December 2023. |
A Joint Project Board ("JPB") was established during FY21 by both The Waltham Abbey Gunpowder Mills Charitable Foundation trustees and directors of The Waltham Abbey Royal Gunpowder Mills Company Limited to provide senior collective leadership and in particular a long term strategy and associated financing for the site as a whole. |
Waltham Abbey Royal Gunpowder Mills Friends Association ("Friends Association") is a Registered Charity (No: 1115237) and both Dr G Hooper and L Stuart are trustees of that Charity, in addition to being directors and trustees of The Waltham Abbey Royal Gunpowder Mills Company Limited. During the year donations were received from the Friends Association totalling £4,123 (2022: £14,500). |
25. | POST BALANCE SHEET EVENTS |
At the Board meeting of 4 December 2023 it was decided that there would be a merger between the The Waltham Abbey Royal Gunpowder Mills Charitable Foundation Limited and The Waltham Abbey Royal Gunpowder Mills Company Limited. |
Under this model, the Waltham Abbey Royal Gunpowder Mills Charitable Foundation Ltd, the sole corporate trustee of the Foundation, would merge with the Operating Company. The Operating Company would be dissolved and its operational responsibilities taken on by the corporate trustee, with the Foundation holding the site and the Permanent Endowment. |
The corporate trustee would adopt new Articles and be registered as a charity. It would also establish a trading subsidiary to enable it to carry out trading activity in the future. |
THE WALTHAM ABBEY ROYAL GUNPOWDER |
MILLS COMPANY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
26. | SHARE CAPITAL |
The charitable company is limited by guarantee and has no share capital. |
Under the terms of the Memorandum of Association the liability of each member is limited to £1 in the event of the winding up of the charitable company. |
27. | HERITAGE ASSETS |
Any assets owned by the Charitable Company that are held for contribution towards the nation's cultural and educational benefit are recognised as heritage assets in the financial statements in accordance with Financial Reporting Standard 102 - Module 18 (Heritage Assets) and FRS 102 SORP, which requires such assets to be reported in the Statement of Financial Position, where information is available, at cost or value with initial recognition of donated heritage assets at their fair value where practical. |
For assets that existed at 31 December 2023 the trustees are of the view that valuation information cannot be obtained at a cost that is commensurate with the benefits to users of the financial statements, so a valuation approach is not practical and the trustees have consequently adopted a non-recognition approach in accordance with the provisions of the Standard. |