Charity registration number 1121765
Company registration number 06069782 (England and Wales)
INSTONE LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
INSTONE LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Ms S A Wilson
Miss M Perry
Mr PS Stone
Secretary
Mr PS Stone
Charity number
1121765
Company number
06069782
Registered office
5 Parrs Head Mews
Rochester
Kent
ME1 1NP
Accountants
Nash Harvey Group LLP
The Granary
Hermitage Court
Hermitage Lane
Maidstone
Kent
ME16 9NT
INSTONE LIMITED
CONTENTS
Page
Trustees report
1 - 2
Statement of financial activities
3
Balance sheet
4
Notes to the financial statements
5 - 8
INSTONE LIMITED
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The trustees present their annual report and financial statements for the year ended 31 January 2024.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

Aims and Objectives

 

The principle objectives of the Instone charity is to relieve in cases of need, hardship or distress persons who are resident in the County of Kent or the Unitary Authority of Medway, to establish conduct and carry out activities for the relief, regeneration, supply and humane benefit of the needy (young and old) of the community by contributing to their need and requirements of everyday life, the purchase of foods, foodstuffs, medicines, clothing, and all other like activities which may be required, including the provision of monies and money's worth for the payment of staff and employees of the company and for the payment of salaries to administrators/civil servants and public employees engaged in furtherance of activities for the provision of services, education and medical facilities, housing, supply of food and the like to the peoples of the area, all such activities to be carried out on a non-profit making charitable basis and to be solely for humanitarian purposes.

 

Strategies for Achieving our Objectives

 

The policies adopted in furtherance of these objects are that the management will look for opportunities in the year to meet these objectives and to find entities to partner with who are also meeting the objectives of the charity. They will also look to raise funds via donations, sales of donated goods and other fund raising activities such as raffles until such a time as the built up funds allow a more sustainable long term project and there has been no change in these during the year.

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

 

The charity raises funds through its retail trading activity as a charity shop by selling donated goods, however the shop was unable to trade during the year due to the impact of Covid.

Grant Making Policy

 

Grants are to be made to those in need as set out in the Charities objectives.

 

The Trustees have agreed that the sum of £25,000 needs to be raised prior to any substantial grants being made to ensure the Charity has sufficient funds to satisfy its obligations i.e. rent, insurance etc on the property 141 High Street Rochester

 

All applications for a grant or grants to be considered by Trustees at the next available meeting or if urgent need then by earlier meeting. Trustees are requested to put forward suggestions regarding grant opportunities. All grant requests to be considered on their merits and be approved if they are within the grant guidelines.

Use of Volunteers

 

The charity shop relies on volunteers in order to operate.

Financial review

Due to the impact of Covid the charity shop remained closed and the stock was put into storage. No donations were made during the year. The landlord has provided a rent free period.

INSTONE LIMITED
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

Reserves Policy

 

The Charity's reserve policy is to retain a sufficient level of reserves to fulfil its financial obligations and to make charitable donation. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be accumulated to a value of £25,000 before donations are made.

 

The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

Risk Management

 

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

Structure, governance and management

The charity is a company limited by guarantee from its members under the terms of its memorandum of association.

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:

Mrs E D Gundry
(Resigned 31 May 2023)
Ms S A Wilson
Miss M Perry
Mr PS Stone

Details of method of recruitment and appointment of trustees include;

 

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

 

Under the requirements of the Memorandum and Articles of Association one-third of the trustees will be required to retire at each annual general meeting by rotation and will then be able to be reappointed if the vacancy is not filled. New trustees can be appointed by the existing trustees.

Details of organisational structure

All aspects of the overall management and the day to day operations are conducted by the trustees.

The charity pays rent and insurance to a company called Lovellrise Limited, which is a related party. Aaron Stone who is a trustee of the charity is a shareholder of Lovellrise Limited. The rent due under the lease agreement is below market value and in recent years the landlord has agreed a rent reduction with Instone Limited. The charity is not currently involved with any other parties, however it looks to form relationships with any local entities who can help to further its objectives.

The trustees report was approved by the Board of Trustees.

Mr PS Stone
Trustee
Dated: 20 October 2024
INSTONE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
Unrestricted
Unrestricted
funds
funds
2024
2023
Notes
£
£
Expenditure on:
Raising funds
2
13,034
16,817
Total expenditure
13,034
16,817
Net expenditure for the year/
Net movement in funds
(13,034)
(16,817)
Fund balances at 1 February 2023
20,121
36,938
Fund balances at 31 January 2024
7,087
20,121

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
INSTONE LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 4 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
5
34,073
13,089
Cash at bank and in hand
393
27,320
34,466
40,409
Creditors: amounts falling due within one year
6
(27,379)
(20,288)
Net current assets
7,087
20,121
Income funds
Unrestricted funds
7,087
20,121
7,087
20,121

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 January 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 20 October 2024
Mr PS Stone
Trustee
Company registration number 06069782
INSTONE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
1
Accounting policies
Charity information

Instone Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 5 Parrs Head Mews, Rochester, Kent, ME1 1NP.

1.1
Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

 

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

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

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

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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 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 charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. 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 charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Donated goods are recognised as income when they are sold.

INSTONE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 6 -
1.5
Expenditure

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.

Expenditure is included in the statement of financial activities on an accruals basis, inclusive of any VAT which cannot be recovered.

 

Expenditure on raising funds includes the rent, rates, utility and other operating costs of the charity shop.

1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

INSTONE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 7 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.8
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

1.9
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2
Raising funds
2024
2023
£
£
Trading costs
Operating charity shops
13,034
16,817
13,034
16,817
3
Trustees

None of the trustees (or any persons connected with them) received any remuneration from the charity during the year. The charity does pay rent to Lovellrise Limited, a company in which the trustee, Aaron Stone, is a shareholder. The rent payable to this company is considered to be below market value.

4
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
INSTONE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Prepayments and accrued income
1,823
589
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
32,250
12,500
Total debtors
34,073
13,089
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
12,428
4,864
Other creditors
9,685
2,632
Accruals and deferred income
5,266
12,792
27,379
20,288
7
Related party transactions
Transactions with related parties

During the year the charity entered into the following transactions with related parties:

The charity has a lease to let premises for the charity shop with a company called Lovellrise Limited, which is a related party. Aaron Stone who is a trustee of the charity is a shareholder of Lovellrise Limited. The rent due under the lease agreement is below market value at £12,500 per year however the company has been given a rent free year due to its current financial situation.

 

The charity is not currently involved with any other parties, however it looks to form relationships with any local entities who can help to further its objectives.

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