Anchor Recordings Limited - Charities report - 20.2
Anchor Recordings Limited - Charities report - 20.2
| REGISTERED COMPANY NUMBER: |
| REGISTERED CHARITY NUMBER: |
| REPORT OF THE TRUSTEES AND |
| UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED | 31 MARCH 2020 |
| FOR |
| ANCHOR RECORDINGS LIMITED |
| ANCHOR RECORDINGS LIMITED |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| for the year ended 31 March 2020 |
| Page |
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 to 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 to 8 |
| Notes to the Financial Statements | 9 to 16 |
| ANCHOR RECORDINGS LIMITED |
| REPORT OF THE TRUSTEES |
| for the year ended 31 March 2020 |
| 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 March 2020. 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 2015). |
| OBJECTIVES AND ACTIVITIES |
| Objectives and aims |
| The principle objectives of the charity are the production, supply and distribution of bible teaching material. |
| Significant activities |
| The principal activities of the charity are the production and sale of audio cassettes, compact discs, DVDs and books from a variety of christian writers and speakers, but with a particular focus on the works of the Reverend David Pawson MA BSc. This material is supplied to customers worldwide. |
| Public benefit |
| The directors have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's guidance on public benefit. |
| ACHIEVEMENT AND PERFORMANCE |
| Charitable activities |
| The major focus in 2019/20 continued to be the work to digitise the extensive library of speakers' sermons, whilst fulfilling online orders for physical media such as books, CDs, DVDs and usb memory sticks. |
| FINANCIAL REVIEW |
| Financial position |
| The company is reporting a surplus of £250,491 (2019: surplus of £181,348) for the year to 31 March 2012, following a revaluation of the investment properties. The surplus has also been due to an increase in donations and income received from royalties compared to last year, offset by a reduction in trading income. |
| The change in business model in 2011, moving from the commercial sales of media to ''free to download'' continues to suppress income, but the company is now seeing a gradually increasing income from digital sales, including Amazon Books/Kindle eBooks, and Royalties from International Publishers for which Anchor has the book rights. |
| The company continues to hold a sufficient level of funds to continue its charitable activities in line with the current strategy. The company holds freehold property whose market value is meaningfully in excess of its book value. further details of this are given in the notes to the financial statements. |
| Reserves policy |
| The Trustees have considered the levels of reserves and consider them to be appropriate. |
| ANCHOR RECORDINGS LIMITED |
| REPORT OF THE TRUSTEES |
| for the year ended 31 March 2020 |
| FUTURE PLANS |
| Working in conjunction with the David Pawson Teaching Trust the company plans to continue the work in digitising its existing library of material with a view to increasing the availability of this material for free streaming/download. |
| STRUCTURE, GOVERNANCE AND MANAGEMENT |
| Governing document |
| The charity is constituted as a company limited by guarantee, with the amount of the guarantee restricted to a maximum of £1 per member. The company is governed by its memorandum and articles of association. The governance and running of the charity is the responsibility of the trustees who also form the board of directors of the company. The trustees usually meet twice a year. |
| Organisational structure |
| The charity was historically based in Ashford, Kent, where it owns a property which was used for the main charitable activity. This office, including the warehouse with stocks of books, tapes, etc is gradually being cleared out. The charity now has an office in Reading, to deal with order fulfilment. Day to day operations of the charity are supported by a team of volunteers assisted by one full time and three part time employees. |
| Related parties |
| During 2010 the company became the trading arm of the David Pawson Teaching Trust, a UK charity whose principal aim is the distribution of David Pawson's teaching material. The company is now deemed to be under the control of the David Pawson Teaching Trust (charity number 01112737), which has the right to appoint a majority of the trustees. Further details of the relationship with that charity are given in the notes to the financial statements. |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Registered Company number |
| Registered Charity number |
| Registered office |
| Trustees |
| Company Director |
| Minister Of Religion |
| Company Director |
| ANCHOR RECORDINGS LIMITED |
| REPORT OF THE TRUSTEES |
| for the year ended 31 March 2020 |
| REFERENCE AND ADMINISTRATIVE DETAILS |
| Company Secretary |
| Independent examiner |
| L Redman |
| FCCA |
| HPCA Limited |
| Chartered Accountants |
| Connaught Road |
| Brookwood |
| Woking |
| Surrey |
| GU24 0ER |
| Approved by order of the board of trustees on |
| INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
| ANCHOR RECORDINGS LIMITED |
| Independent examiner's report to the trustees of Anchor Recordings Limited ('the Company') |
| I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2020. |
| Responsibilities and basis of report |
| As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). |
| Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. |
| Independent examiner's statement |
| I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: |
| 1. | accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or |
| 2. | the accounts do not accord with those records; or |
| 3. | the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or |
| 4. | the accounts 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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. |
| I have no concerns and have come across 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 accounts to be reached |
| INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
| ANCHOR RECORDINGS LIMITED |
| L Redman |
| FCCA |
| HPCA Limited |
| Chartered Accountants |
| Station House |
| Connaught Road |
| Brookwood |
| Woking |
| Surrey |
| GU24 0ER |
| 25 November 2020 |
| ANCHOR RECORDINGS LIMITED |
| STATEMENT OF FINANCIAL ACTIVITIES |
| (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) |
| for the year ended 31 March 2020 |
| 2020 | 2019 |
| Unrestricted fund |
Restricted fund |
Total funds |
Total funds |
| Notes | £ | £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies |
| Charitable activities |
| Investment income | 2 |
| Total |
| EXPENDITURE ON |
| Raising funds |
| Charitable activities |
| Total |
| Net gains/(losses) on investments |
| NET INCOME |
| Transfers between funds | 12 | 5,992 | (5,992 | ) | - | - |
| Net movement in funds | ( |
) |
| RECONCILIATION OF FUNDS |
| Total funds brought forward |
| TOTAL FUNDS CARRIED FORWARD | 245,412 |
| ANCHOR RECORDINGS LIMITED |
| BALANCE SHEET |
| At 31 March 2020 |
| 2020 | 2019 |
| Unrestricted fund |
Restricted fund |
Total funds |
Total funds |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 7 |
| Investment property | 8 | 432,000 | - | 165,000 |
| CURRENT ASSETS |
| Stocks | 9 |
| Debtors | 10 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 11 | ( |
) | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| NET ASSETS |
| FUNDS | 12 |
| Unrestricted funds | 495,902 | 239,420 |
| Restricted funds | 5,992 |
| TOTAL FUNDS | 245,412 |
| ANCHOR RECORDINGS LIMITED |
| BALANCE SHEET - CONTINUED |
| At 31 March 2020 |
| The charitable company is entitled to exemption from audit under |
| Section 477 of the Companies Act 2006 for the year ended 31 March 2020. |
| The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 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. |
| 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 on |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS |
| for the year ended 31 March 2020 |
| 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 2015)', 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, as modified by the revaluation of certain assets. |
| 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. |
| More specifically royalty income includes what is received in the year together with what is receivable for the year and can be estimated with reasonable accuracy. |
| 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. |
| Tangible fixed assets |
| The charity owns a property comprising: |
| a) an office and storage facility which has historically been used in support of its principal charitable activities but will now be sold to generate some cash. As such it has been reclassified as an investment property and shown at a valuation of £167,000, and |
| b) a small shop and flat, both of which are currently generating rental income, and which have been reclassified as investment property and shown at a combined valuation of £265,000. |
| Investment property |
| Investment properties are shown at their most recent valuation. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Taxation |
| The charity is exempt from corporation tax on its charitable activities. |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| for the year ended 31 March 2020 |
| 1. | ACCOUNTING POLICIES - continued |
| Fund accounting |
| Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
| Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
| Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
| Pension costs and other post-retirement benefits |
| The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
| 2. | INVESTMENT INCOME |
| 2020 | 2019 |
| £ | £ |
| Rents received |
| Shop/Flat Electric and Gas | 378 | 378 |
| Interest receivable - trading | 20 | - |
| 3. | NET INCOME/(EXPENDITURE) |
| Net income/(expenditure) is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Depreciation - owned assets |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| for the year ended 31 March 2020 |
| 4. | TRUSTEES' REMUNERATION AND BENEFITS |
| There were no trustees' remuneration or other benefits for the year ended 31 March 2020 nor for the year ended 31 March 2019. |
| Trustees' expenses |
| One of the trustees had travel and subsistence and miscellaneous expenses reimbursed totalling £2,570. |
| 5. | STAFF COSTS |
| The average monthly number of employees during the year was as follows: |
| 2020 | 2019 |
| Sales, distribution & administration | 4 | 3 |
| No employees received emoluments in excess of £60,000. |
| 6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
| Unrestricted fund |
Restricted fund |
Total funds |
| £ | £ | £ |
| INCOME AND ENDOWMENTS FROM |
| Donations and legacies |
| Charitable activities |
| Investment income |
| Total |
| EXPENDITURE ON |
| Raising funds |
| Charitable activities |
| Total |
| Net gains/(losses) on investments |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| for the year ended 31 March 2020 |
| 6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
| Unrestricted fund |
Restricted fund |
Total funds |
| £ | £ | £ |
| NET INCOME |
| RECONCILIATION OF FUNDS |
| Total funds brought forward | 58,072 | 5,992 | 64,064 |
| TOTAL FUNDS CARRIED FORWARD | 239,420 | 5,992 | 245,412 |
| 7. | TANGIBLE FIXED ASSETS |
| 72 The Street Kennington |
Fixtures and fittings |
Office equipment |
Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2019 |
| Additions |
| Reclassification | (47,490 | ) | - | - | (47,490 | ) |
| At 31 March 2020 |
| DEPRECIATION |
| At 1 April 2019 |
| Charge for year |
| Reclassification/transfer | (36,571 | ) | - | - | (36,571 | ) |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| for the year ended 31 March 2020 |
| 8. | INVESTMENT PROPERTY |
| £ |
| FAIR VALUE |
| At 1 April 2019 |
| Additions |
| Revaluation | 241,213 |
| Reclassification | 10,919 |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| 9. | STOCKS |
| 2020 | 2019 |
| £ | £ |
| Stocks |
| 10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Prepayments and accrued income |
| 11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Trade creditors |
| Other creditors |
| Accrued expenses |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| for the year ended 31 March 2020 |
| 12. | MOVEMENT IN FUNDS |
At 1.4.19 |
Net movement in funds |
Transfers between funds |
At 31.3.20 |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 239,419 | 250,491 | 5,992 | 495,902 |
| Restricted funds |
| David Pawson Teaching Fund | 5,992 | - | (5,992 | ) | - |
| TOTAL FUNDS | 250,491 | 495,902 |
| Net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Gains and losses |
Movement in funds |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 110,010 | (100,732 | ) | 241,213 | 250,491 |
| TOTAL FUNDS | ( |
) | 250,491 |
| Comparatives for movement in funds |
At 1.4.18 |
Net movement in funds |
At 31.3.19 |
| £ | £ | £ |
| Unrestricted Funds |
| General fund | 58,072 | 181,348 | 239,420 |
| Restricted Funds |
| David Pawson Teaching Fund | 5,992 | - | 5,992 |
| TOTAL FUNDS | 64,064 | 181,348 | 245,412 |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| for the year ended 31 March 2020 |
| 12. | MOVEMENT IN FUNDS - continued |
| Comparative net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Gains and losses |
Movement in funds |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 99,345 | (81,692 | ) | 163,695 | 181,348 |
| TOTAL FUNDS | 99,345 | (81,692 | ) | 163,695 | 181,348 |
| A current year 12 months and prior year 12 months combined position is as follows: |
At 1.4.18 |
Net movement in funds |
Transfers between funds |
At 31.3.20 |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 58,072 | 431,839 | 5,992 | 495,903 |
| Restricted funds |
| David Pawson Teaching Fund | 5,992 | - | (5,992 | ) | - |
| TOTAL FUNDS | 64,064 | 431,839 | - | 495,903 |
| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
| Incoming resources |
Resources expended |
Gains and losses |
Movement in funds |
| £ | £ | £ | £ |
| Unrestricted funds |
| General fund | 209,355 | (182,424 | ) | 404,908 | 431,839 |
| TOTAL FUNDS | 209,355 | (182,424 | ) | 404,908 | 431,839 |
| ANCHOR RECORDINGS LIMITED |
| NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
| for the year ended 31 March 2020 |
| 13. | RELATED PARTY DISCLOSURES |
| The charity is a significant channel of distribution for the works of David Pawson, whose written and other materials are distributed by The David Pawson Teaching Trust (DPTT) (charity no 1112737). Following a resolution passed in June 2013 The David Pawson Teaching Trust has the right to appoint a majority of the directors of the company and the two entities are managed on a co-ordinated basis. |
| The company recharges costs incurred for distributing products on behalf of DPTT and also pays the Trust for any royalties due to David Pawson £7,787 (2019: £12,298). At the balance sheet date the company was owed £1,146 from DPTT (2019 owed DPTT: £5,771). This amount is being included within "Other debtors" (2019: "Other creditors"). |
| The charity met Anchor's accountancy costs and Independent Examination fees up to 2019. It has now been agreed that the charity will make an annual contribution to Anchor Recordings to contribute towards its costs. The total paid in the year to 31 March 2020 was £37,500. |
| 14. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is the David Pawson Teaching Trust, which, following a resolution passed in June 2013, now has the right to appoint a majority of the directors of the company. |