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REGISTERED COMPANY NUMBER: SC279698 (Scotland)
REGISTERED CHARITY NUMBER: SC024123









THE INVERCLYDE TRUST
(A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29TH FEBRUARY 2024

THE INVERCLYDE TRUST






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29TH FEBRUARY 2024




Page

Report of the Trustees 1 to 4

Independent Examiner's Report 5

Statement of Financial Activities 6

Balance Sheet 7 to 8

Notes to the Financial Statements 9 to 13

THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 29TH FEBRUARY 2024


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 29th February 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

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

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

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

So, amongst the large grants was AYDAP (education, child protection, and welfare of children in Liberia) made to enable the development of the second school, having been built at the end of 2020 and been operating since then. Grants from the trust and another large Scottish foundation are being used to maintain enrolment levels to 100, and develop sustainability through an agriculture project. The Scripture Union Magnitude youth event attracts more than 700 young people. The Operation Mobilisation grant was to support the ongoing Mercy House provision for street children in Makalulu, Zambia, as we as a recently established Safe House for young girls. The Evangelical Alliance donation was in support of the Public Leaders programme.

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

Investment performance
The core objectives of the funds of the Trust continues, namely to maintain (and increase over time) the income of the portfolio along with steady capital gain. The portfolio is split between a direct self-managed part, and one subcontracted to the M&G Charifund. The overall portfolio produced income of £89,391 in the trust's 2024 financial year, compared to £78,921 in 2023.

The equity markets experienced a volatile 2023, with the impact of the war in Ukraine and conflict that developed after October in the Middle East. However, the period saw the peak of inflation and interest rates, and market mainly responded positively to strong US GDP recovery, and waning fears about recession. With much of the SAP500 performance being driven by its large technology stocks, the FTSE 100 and its lack of technology companies has led it most of the time to underperform at least the US indices. With the trust's orientation towards income generation, the low exposure to non income producing US equities, and high exposure to UK dividend payers, the portfolio like the FTSE100 failed to see large valuation increases. A substantial cash reserve provided some protection in these circumstances. The Trust's direct portfolio via investment trusts (around 50% of the direct portfolio), did not help performance as during periods of high interest rates the sector tends to trade at larger discounts to net asset value. Many retail investors are turning to the high yield attractions of both savings accounts and stocks or bonds, that have risen substantially along with interest rates. The trustees continue to believe that the investment trust sector will make a recovery in due course, and in the meantime are partly responsible for the increased income generation of the portfolio.


THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 29TH FEBRUARY 2024

FINANCIAL REVIEW
Financial review
The trust's net expenditure for the year to 29th February 2024 was £77,734. Included in this is the loss on investment assets of £124,368. The accumulated funds at 29th February 2024 are £1,885,183. The funds are held at this level to produce income to support the charitable activities.

Reserves policy
As part of its activities the trust sets out to be a long term supporter of certain projects or organisations that fulfil its objectives. To ensure that it can continue that support the trustees deem it appropriate to hold reserves, and primarily to use the income generated by those reserves, when invested, to support its activities. The trust does not raise funds from the public or third parties. All of its capital has been donated by the trustees and there is no certainty of that from year to year. At 29th February 2024 the trust had unrestricted reserves of £1,885,183. It is the opinion of the trustees that a minimum level of £1,000,000 in reserves is required to provide the income to support its activities for the long term. Utilisation of the reserves below that level to make grants would reduce the income generating base, and over time the ability to provide long term support. The reserves will be reviewed annually in the light of the development of the activities of the trust, but at present represent a strong buffer against market gyrations.

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

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

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

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

Organisational structure
The trustees at 29th February, 2024 are as set out below and they have served for the full financial period.


THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 29TH FEBRUARY 2024


STRUCTURE, GOVERNANCE AND MANAGEMENT
Risk management
The annual review of the risks facing the trust was undertaken by the directors. The main risk is investment performance, and in particular income generation to support the grant making activity, as the trust does not undertake fund raising from third parties, and so relies upon the portfolio to generate the funds for making donations. The portfolio is diversified by holding both direct holdings and investment trusts (which themselves are highly diversified) in the own managed portfolio, generating an above market yield but not to the extent of hampering some capital growth. This portfolio is given an international 'tilt' given the dominance of UK holdings in the M&G Charifund portfolio, thus magnifying the diversification. The Charifund is higher yielding.

The Trust has sought to achieve income through a 100% exposure to equities either via the M&G Charifund or in the direct portfolio (though the Charifund does have some fixed coupon exposure). In an era of very low interest rates this has produced a much better total return than could be achieved via bonds or gilts. This asset allocation is kept under review, and after a torrid time for fixed interest securities, with most continuing to fall in value in 2023, the trust will seek an exposure to this asset class, probably via collective vehicles. Once interest rates peak this should provide a good yield, some capital protection, and better returns than fixed interest has produced in the last couple of years. During the year the defensive cash balance was reduced as investment opportunities arose.

Wherever possible as a matter of policy, the risk of making a donation to an entity with poor governance is mitigated by making the donations to UK registered charities. Regular contact is maintained with the key donees and reports are sought where appropriate.

The risk of personal data breaches and not meeting the requirements of the General Data Protection Regulation introduced at the end of May 2018 is minimal as the trust holds no personal data on anyone another than the trustees as it does not raise money from the public.

The Trust has substantial and largely liquid unrestricted reserves, and low operating costs, and is well positioned to manage the current global circumstances.

REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
SC279698 (Scotland)

Registered Charity number
SC024123

Registered office
Barnellan
Bardowie
Milngavie
Glasgow
G62 6EZ

Trustees
G Burns
C Burns
K Burns
P Burns
S Burns

Company Secretary
G Burns

Independent Examiner
Russell & Russell Business Advisers Limited
4 Royal Crescent
Glasgow
G3 7SL

THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 29TH FEBRUARY 2024


REFERENCE AND ADMINISTRATIVE DETAILS
Bankers
Bank of Scotland
Direct Business

Stockbrokers
J.M. Finn & Co
4 Coleman Street
London
EC2R 5TA

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

Approved by order of the board of trustees on 20th November 2024 and signed on its behalf by:





G Burns - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF
THE INVERCLYDE TRUST

I report on the accounts for the year ended 29th February 2024 set out on pages six to thirteen.

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

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

Independent examiner's statement
In connection with my examination, no matter has come to my attention :

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

- to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
- to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

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








Ann McNally FCCA
The Association of Chartered Certified Accountants

Russell & Russell Business Advisers Limited
4 Royal Crescent
Glasgow
G3 7SL

20th November 2024

THE INVERCLYDE TRUST

STATEMENT OF FINANCIAL ACTIVITIES
(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 29TH FEBRUARY 2024

29.2.24 28.2.23
Unrestricted Total
fund funds
Notes £    £   
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 81,250 -

Investment income 3 89,391 78,921
Total 170,641 78,921

EXPENDITURE ON
Charitable activities 4
Grants and donations payable 107,177 94,500
Support costs 16,830 19,271
Total 124,007 113,771

Net gains/(losses) on investments (124,368 ) 25,719

NET INCOME/(EXPENDITURE) (77,734 ) (9,131 )


RECONCILIATION OF FUNDS
Total funds brought forward 1,962,917 1,972,048

TOTAL FUNDS CARRIED FORWARD 1,885,183 1,962,917

THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)

BALANCE SHEET
29TH FEBRUARY 2024

29.2.24 28.2.23
Unrestricted Total
fund funds
Notes £    £   
FIXED ASSETS
Investments 8 1,632,459 1,808,061

CURRENT ASSETS
Debtors 9 175,232 82,663
Cash at bank 94,322 75,433
269,554 158,096

CREDITORS
Amounts falling due within one year 10 (16,830 ) (3,240 )

NET CURRENT ASSETS 252,724 154,856

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,885,183

1,962,917

NET ASSETS 1,885,183 1,962,917
FUNDS 11
Unrestricted funds 1,885,183 1,962,917
TOTAL FUNDS 1,885,183 1,962,917

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 29th February 2024.


The members have not required the company to obtain an audit of its financial statements for the year ended 29th February 2024 in accordance with Section 476 of the Companies Act 2006.


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


THE INVERCLYDE TRUST (REGISTERED NUMBER: SC279698)

BALANCE SHEET - continued
29TH FEBRUARY 2024

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 20th November 2024 and were signed on its behalf by:





G Burns - Trustee

THE INVERCLYDE TRUST

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29TH FEBRUARY 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

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

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

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

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

Charitable grants
Grants reflect amounts paid and payable in the accounting period.

Fixed asset investments
a) Investments are initially recognised at their transaction value and subsequently measured at their market value at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
b) All investment gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

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

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

THE INVERCLYDE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29TH FEBRUARY 2024

1. ACCOUNTING POLICIES - continued

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

2. DONATIONS AND LEGACIES
29.2.24 28.2.23
£    £   
Donations 81,250 -

3. INVESTMENT INCOME
29.2.24 28.2.23
£    £   
Income from UK listed investments 84,915 77,772
Interest receivable 4,476 1,149
89,391 78,921

4. GRANTS AND DONATIONS

The grants paid to institutions were as follows:
28.2.24 28.2.23
£ £
Abernethy Trust 5,000 5,000
African Youth Development Action Project - Liberia 9,000 8,000
Association of Christian Counsellors 2,000 2,000
British Red Cross - 7,000
Changing Lives Malawi 4,000 4,000
Evangelical Alliance in Scotland 8,000 -
Glasgow City Mission 5,000 5,000
Home for Good 7,000 -
Ibex Capital Trustee 4,500 -
Interserve Great Britain and Ireland 3,000 3,000
Music Education Partnership Group 3,000 2,500
Navigators UK 8,000 7,000
Operation Mobilisation 10,000 9,000
Starfish South Africa - 5,000
SU Scotland - Soul Survivor 14,677 14,000
Tearfund 7,000 -
The Loss Foundation - 7,000
The Preshal Trust 3,000 3,000
The Salvation Army 5,000 3,000
The Trussell Trust - 3,000
World Vision 9,000 7,000
107,177 94,500


THE INVERCLYDE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29TH FEBRUARY 2024

5. SUPPORT COSTS
Governance
costs
£   
Support costs 16,830

Support costs, included in the above, are as follows:
29.2.24 28.2.23
Support Total
costs activities
£    £   
Management fees 13,128 16,031
Independent examiner's fees 1,361 1,296
Accountancy and tax fees 2,341 1,944
16,830 19,271

6. TRUSTEES' REMUNERATION AND BENEFITS

Management fees comprise an amount charged by Barnellan Equity Advice Limited for management services rendered during the year of £13,128 (2023: £16,031). G. Burns is a director in this business.

There was no trustees' remuneration paid for the year ended 29th February, 2024 nor for the year ended 28th February, 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 29th February 2024 nor for the year ended 28th February 2023.


7. STAFF COSTS

The company had no employees during the year.

8. FIXED ASSET INVESTMENTS
Listed
investments
£   
MARKET VALUE
At 1st March 2023 1,808,061
Additions 99,680
Disposals (154,520 )
Revaluations (120,762 )
At 29th February 2024 1,632,459
NET BOOK VALUE
At 29th February 2024 1,632,459
At 28th February 2023 1,808,061

There were no investment assets outside the UK.

THE INVERCLYDE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29TH FEBRUARY 2024

8. FIXED ASSET INVESTMENTS - continued

Cost or valuation at 29th February 2024 is represented by:

Listed
investments
£   
Valuation in 2024 1,632,459

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
29.2.24 28.2.23
£    £   
Amount owed by stockbroker 158,897 82,663
Income tax recoverable 16,335 -
175,232 82,663

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
29.2.24 28.2.23
£    £   
Trade creditors 13,128 -
Accruals and deferred income 3,702 3,240
16,830 3,240

11. MOVEMENT IN FUNDS
Net
movement At
At 1.3.23 in funds 29.2.24
£    £    £   
Unrestricted funds
General fund 1,962,917 (77,734 ) 1,885,183

TOTAL FUNDS 1,962,917 (77,734 ) 1,885,183

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

Incoming Resources Gains and Movement
resources expended losses in funds
£    £    £    £   
Unrestricted funds
General fund 170,641 (124,007 ) (124,368 ) (77,734 )

TOTAL FUNDS 170,641 (124,007 ) (124,368 ) (77,734 )


THE INVERCLYDE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29TH FEBRUARY 2024

11. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement At
At 1.3.22 in funds 28.2.23
£    £    £   
Unrestricted funds
General fund 1,972,048 (9,131 ) 1,962,917

TOTAL FUNDS 1,972,048 (9,131 ) 1,962,917

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

Incoming Resources Gains and Movement
resources expended losses in funds
£    £    £    £   
Unrestricted funds
General fund 78,921 (113,771 ) 25,719 (9,131 )

TOTAL FUNDS 78,921 (113,771 ) 25,719 (9,131 )

12. RELATED PARTY DISCLOSURES

As mentioned in the financial review on page 2, all capital has been donated by trustees. The donation made during the year of £81,250 was donated by the trustees.These donations have no conditions attached.