The directors present their report and accounts for the year ended 31 December 2024.
Brief History
The Heulwen Trust operates two narrow boats, named "Heulwen - Sunshine", on the reclaimed section of the Montgomeryshire Canal at Welshpool. Heulwen I was the first narrow boat in the world to be built solely for use by children with disabilities and was designed by surgeons from The Shropshire Orthopaedic Hospital, Gobowen and built by apprentices at Cammell Laird, Birkenhead. It was launched in 1975 by His Royal Highness The Prince of Wales.
Until 1985 it was run by The Prince of Wales Committee but from thereon The Heulwen Trust was formed, registered as a Charitable Organisation, and took over full responsibility and ownership of the boat. The Trust was incorporated as a Company limited by Guarantee in January 1992.
In 1992 the Trust purchased a one acre parcel of land adjoining the Montgomeryshire Canal Section just outside Welshpool with a view of developing its own mooring site for the narrow boat and secondly to accommodate the planned development of a Holiday Home for people with disabilities.
The Mooring site has been in use since May 1993 and work on roadway and landscaping of this section was completed in Spring 1994. An electricity supply was installed at the moorings in 2001 followed by a water supply in 2002. Extensive improvements to the Wharf were carried out in 2006.
In May 1993 the new narrowboat "Heulwen II" was delivered and named by H.R.H. The Prince of Wales on a visit to Welshpool.
In 2009 delivery was taken of a new boat, Heulwen III Silver lady at a cost of £100,000. Heulwen I was sold on the open market.
The boats are in continual demand by special schools, hospices, hospitals, and other groups of people who are less abled. Our passengers come from a wide area of Wales, Shropshire, Staffordshire and the West Midlands and, to date, have carried over 80,000 passengers on free daily boat trips. The boats are operated throughout the year. The Trust employs experienced boatmen as well as making use of volunteers. The officials and committee of the Trust give their time voluntarily.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The Heulwen Trust's objects are the relief of persons with disabilities by:-
1. The provision, operation and maintenance of two narrow boats on the Montgomery Canal for education, recreational or other leisure time occupations in the interest of social welfare.
2. The acquisition of land for the purpose of developing, operating and maintaining thereon purpose built accommodation for such persons to enjoy residential holidays with the object of improving the conditions of the life of such persons.
The possible provision of a Holiday Home was reviewed in 2023 and it has been decided that it may well be possible to re-address the object of the provision of a holiday home, at the time of approving these financial statements this is still under consideration
The directors have paid due regard to guidance issued by the Charity Commission on the Public Benefit requirements under the Charities Act 2011 in deciding what activities the Heulwen Trust should undertake.
Review of the Year
Boat Trips for the Disabled
Boat trips for the Disabled continued throughout 2024 and given that the boats operate during the week and the cold of winter months dampens demand to zero, we were privileged to host many trips taking a lot of less abled folks along our little used waterway,
Fund Raising
We are very grateful to the generosity of donors and not necessarily our clients from whom we do actively seek donations. We have been able to offer our clients free boat trips along the canal because of the efforts of our volunteers in running the Welshpool Country and Western Festival held in Welshpool. This is our major source of funds and without them there would be no festival.
Fixed Assets
The Trust owns two 70ft. Narrow Boats as shown in the notes to these accounts.
In 2021 the Trust purchased a tug boat from the Canal and River Trust which is used by volunteers to help maintain the canal.
In February 2023 the Trust instructed What Floats Your Boats Marine Surveys to carry a valuation of both Narrow Boats and these assets are carried forward at their revalued amounts less accumulated.
The Trust also owns a one acre parcel of land including a mooring site for the boats. The cost of the land and development of the mooring site is also shown in the notes to the accounts.
The open market value of the one acre piece of land is estimated at £30,000.
Total income for the year was £61,572 (2023: £66,820).
Investment income this year from Bank and Building Society was £11,118 (2023: £4,374). Dividend income was £1,749 (2023: £1,702).
Our main fund raising event, the Country Music Festival took place over the weekend [18 - 21st July], showing net income of £16,366 (2023: £14,442) ; full details are given on pages 12 and 14.
Total expenditure before depreciation of £53,267 (2023: £66,430) resulted in an excess of income over expenditure of £7,855 (2023: £390). A depreciation charge is included of £11,058 (2023: £9,800). Net gains on investments are included of £6,581 (2023: £4,335) giving a net increase in funds of £3,828. With the 2023 figures, there was an overall decrease in funds of £5,075.
The balance of our Bank and Building Societies and investment accounts increased by £19,534 to £389,878 (2023: £370,344).
The Trust's main priority is the running of the narrow boats. The possible provision of a Holiday Home was reviewed in 2023 and it has been decided that it may well be possible to re-address the object of the provision of a holiday home. This is under consideration, but at a time when we have concentrated on the first objective of the provision of narrow boat trips.
The Trustees maintain capital on deposit and invested at around the current levels both to maintain a reserve to replace boats as necessary and in part to generate sufficient interest which, along with the funds raised from the Country Music Festival, means they are able to meet the running expenses of the narrow boats, which have increased significantly over the years.
It is the policy of the Heulwen Trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Heulwen Trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Future Plans
The Trust's future plans are:-
The continuation of running the free daily trips on the Montgomeryshire canal for use by people with disabilities.
To explore how to achieve holiday accommodation at our wharf and to investigate the acquisition of a replacement boat.
Audit Exemption
The Trustees have decided to take advantage of the audit exemption provisions of the Companies Act. Under the provisions of the Act, Cadwallader & Co LLP has been appointed as Independent Examiners.
The Heulwen Trust was formed under a Memorandum and Articles of Association and incorporated as a company limited by guarantee and not having a share capital (company registration number 2681102) on 27th January 1992. The charity is controlled by its governing document.
The directors who served during the year and up to the date of signature of the financial statements were:
All members of the Management Committee retire from office at the Annual General Meeting on the second year of coming into office, but they may be re-elected or re-appointed.
The directors, who also act as trustees for the charitable activities of Heulwen Trust, are responsible for preparing the Directors Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Heulwen Trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the Heulwen Trust will continue in operation.
The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Heulwen Trust and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Heulwen Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors report was approved by the Board of Directors.
I report to the directors on my examination of the financial statements of Heulwen Trust (the Heulwen Trust) for the year ended 31 December 2024.
Having satisfied myself that the financial statements of the Heulwen Trust are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the Heulwen Trust’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
I have completed my examination. I have identified that the record keeping of cash transactions was not presented to me in a timely manner or in a format that enabled me to verify all Income and Expenses.
I confirm that apart from the matter of concern set out above, no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Heulwen Trust as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I confirm that there are no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Country Music Festival
Investments
Raising funds
Heulwen Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Eagle House, 25 Severn Street, Welshpool, Powys, SY21 7AD.
These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The Heulwen Trust is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS102 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 Heulwen Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the accounts, the directors have a reasonable expectation that the Heulwen Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the accounts.
Unrestricted funds are available for use at the discretion of the directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the Heulwen Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs 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.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the Heulwen Trust reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
The Heulwen Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Heulwen Trust's balance sheet when the Heulwen Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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, 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.
Financial liabilities are derecognised when the Heulwen Trust’s contractual obligations expire or are discharged or cancelled.
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 Heulwen Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Taxation
The charity is exempt from tax on its charitable activities.
In the application of the Heulwen Trust’s accounting policies, the directors 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 these 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.
Investments
Country Music Festival
Raising funds
Boat Trips
Country Music Festival
Boat Trips
Country Music Festival
Boat Costs
Insurance Costs
Administration, Printing & Advertising Costs
Entertainment & Security
Site Preparation & Cleaning
Toilet & Shower Operating Costs
Hire & Purchase of Equipment
Cost of Electricity & Electrical Works
Performing Rights Society
Miscellaneous Costs
None of the directors (or any persons connected with them) received any remuneration or benefits from the Heulwen Trust during the year. During the period travelling expenses of £151 were reimbursed (2023: £nil).
The average monthly number of employees during the year was:
Narrow Boat II and Silver Lady with a carrying amount of £23,333 and £38,939 respectively were revalued at February 2023 by What Floats Your Boat Marine Surveys, independent valuers not connected with the Heulwen Trust on the basis of open market value.
At 31 December 2024, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £1 (2023: £1) for Narrow Boat II and £1 (2023: £3,281) for Silver Lady.
The revaluation surplus is disclosed in note 18.
In July 2013 the Trustees made a decision to invest £35,000 (15% of total Capital) on the stock market as interest rates continued to run well below the rate of inflation
The figures at 31st December 2024 were overall £68,795 (2023: £61,123) of which cash held was £1,354 and the underlying value of the funds held being £67,441.
This represents a rise of 92.69% over nearly twelve years. The Trustees take the long term view that we are ahead of the amounts being paid on deposit accounts.
The remit is a balanced level capital growth and income, and the current investments have been chosen in the belief that they will continue to provide this.
2024 2023
United Trust Bank 86,864 88,667
Aldermore 85,000 85,000
Redwood 91,839 85,948
263,703 259,615
The Holiday Home fund included in the above balances is £113,468 (2023: £109,904).
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The fund includes grant money of £1,784 from CAF along with a donation of £1,000 towards the purchase of a new tug.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
During the year Educational Sales, a company which is controlled by one of the Directors/ Trustees provided the services of online sales and collection of monies on behalf of Heulwen Trust for which no charge was issued (2023: £24).
Heulwen Trust have a number of volunteers who assist with maintaining a section of the Montgomery Canal, that is used by the charity, along with assisting with the running of the Welshpool Country and Western Music Festival. During the period the volunteers have been provided with meals and refreshments whilst assisting the charity, the total cost of which was £600.