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Charity Registration Number 238043'9 d V l

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The Charles Wolfson Charitable Trust

Financial statements

5 April 2006

THE CHARLES WOLFSON CHARITABLE TRUST Company information

Governing Instrument Deed of Trust executed on 14 July 1960

Settlors Charles Wolfson Lord Wolfson of Sunningdale

Trustees Lord Wolfson of Sunningdale The Hon Simon Adam Wolfson The Hon Andrew Daniel Wolfson Dr Sara Levene

Secretary Michael Morris Franks

Correspondent Mrs R Crawford

-~

Address 129 Battenhall Road

-~

Worcester WR5 2BU

Auditors Chantrey Vellacott DFK LLP Chartered Accountants

Q

Russell Square House 10-12 Russell Square London

WC1 B 5LF

Bankers Bank of Scotland 14/16 Cockspur Street London

SW1Y 5BL

Solicitors William Sturges & Co Burwood House 14-16 Caxton Street London SW1 H OQY

Investment property managers MERJS Limited (formerly Ross Jaye Sayer & Co. Limited) 26/28 Hallam Street London W1 W 6NS

Charity registration number

238043

Inland Revenue reference

XN2027

1

THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' report

The trustees present their report and financial statements of the The Charles Wolfson Charitable Trust ("the Trust") and the group for the year ended 5 April 2006, which includes the administrative information set out on page 1.

The "group"

means the Trust and Benesco

Charity Limited (Benesco) and

its wholly-owned

subsidiary companies, Heath Retail Holdings Limited and Heath Retail One Limited.

Reference and administrative details of the charity, its trustees and advisors

The charity number, present trustees and advisors are given on page 1.

Trustees The trustees who held office throughout the year, unless otherwise stated, were as follows:

Lord Wolfson of Sunningdale (Chairman) The Hon Simon Adam Wolfson The Hon Andrew Daniel Wolfson Dr Sara Levene (appointed 9 August 2005)

Structure, governance and management

Governing document The Trust is a registered charity and is governed by a Deed of Trust executed on 14 July 1960.

Appointment of trustees, organisational structure and related parties

The Trust is administered by the trustees who are

thereafter by the continuing trustees. They meet quarterly and receive regular reports on the group's

properties and finances from its property managers and other advisors.

appointed by the settlors during their lifetime and

The Trust is a grant-making charity which derives the bulk of its income from grants received from Benesco, which is a registered charity and a company (limited by guarantee) whose investments are

held in property.

It is the declared policy of the trustees that the majority of the trustees of this charity must be members of Benesco, and the majority of the members of Benesco will consist of trustees of this Trust who have the power to appoint and remove directors, and Benesco is thereby controlled by this charity. Because the Trust thereby controls Benesco, the trustees are presenting consolidated financial statements including the combined assets, liabilities and income of the Trust and of Benesco and its subsidiary companies as a group.

Risk management statement The trustees have examined the major strategic, business and operational

faces and confirm that systems have been established to enable these risks to be mitigated to an acceptable level.

risks which the group

2

i

THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' repo rt (continued)

Objectives and activities

The objective of the Trust is to apply the income to such charitable purposes as the trustees shall select.

The policies adopted to further the Trust's objectives include the making of direct grants of money, the provision of loans, on which the interest is waived and the provision of rent-free premises. Direct grants of money constitute well over 95% of the charitable application of funds.

Although the trustees of the Trust and the directors of Benesco have power to apply both

capital

and income to charitable purposes, the medium and long term policy has been to preserve the

capital and to expend the income, after giving consideration to the effects of inflation.

It is considered that it is not practical to make any predetermined annual allocation between the various grant headings, especially as it is sometimes appropriate not to fully distribute in a pa rt icular year in order to accommodate large projects which extend over more than one year.

The directors of Benesco have chosen to focus on property investment because, after allowing for annual running costs and renewals and refurbishment, the rental income over the years tends to keep pace with inflation, so long as the portfolio is well spread in appropriate properties. Income from propert y does not include monies spent and recouped by way of reimbursement from lessees, such as service charges, insurance premiums and the usual outgoings recovered.

14.~

~

Grant making policy

It is the trustees' normal policy not to make grants to individuals and to make grants in the UK

only to registered charities, or to hospitals and schools and similar charitable institutions.

The

intention is to direct grants to the major areas listed below, especially for capital or fixed term projects, and with pa rt icular, but not exclusive, regard to the needs of the Jewish community. This statement of objectives is not intended as a formal limitation of the way that the trustees may

exercise their discretion from time to time.

1. Medicine

2. Education

3. Welfare

The group in suitable circumstances has purchased buildings to be

made available to other

charities so that effectively the income which should otherwise be derived from such property, or most of it, is foregone by way of conferring a grant or benefit to the other charities to assist them in the work for which the group wishes to give support.

3

THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' report (continued)

Achievements and performance

Investment policy and property report The group's investment policy is primarily to focus on property providing a good rental income, to enable it to support its charitable objectives, combined with long term security to ensure the longevity of the charity.

With this in mind, supported by the services of professional property managers, the group invests to build what it considers to be a high quality portfolio with the vast majority in commercial and non- residential property let to business tenants. The trustees consider this policy to have been successful over previous years and during the current year given both the income generation and the unrealised increases in property values.

At the balance sheet date, the group's property portfolio consisted of:

1. 10 commercial holdings, all of which were freehold and which represent well over 95%

of the prope rty po rtfolio ; and

2. 5 properties which the group made available to other charities on a rent-free or rent- reduced basis.

The portfolio has February 1977.

been

built

up over

29 years,

the first

purchase having

been

made in

The original cost of the propert ies, excluding those made available to other charities, at the

balance

sheet

date

was

£68,709,856

(2005: £41,874,749)

against

a

current

value

of

£129,984,000

(2005: £102,370,000).

The

rent

roll

at

April

2006

was

£7,233,000

(2005: £6,925,000).

The trustees have continued their policy of upgrading buildings as and when required. Upgrades

~ have again been carried out during the year which have resulted in increased rental income and

increased portfolio value. Further upgrades are currently in hand which will continue to contribute positively towards both the rental income and the capital values of the properties.

The changes in fixed assets during the year are summarised

in

the

notes

to the financial

statements.

The properties held by the charitable company and its subsidiary undertakings at 5

April 2006 have been valued by the group's property managers on a market value basis at approximately £132,359,000 (2005: £104,925,500) as compared to their total original cost of £69,512,951 (2005: £42,884,131).

Grants made

In the year to 5 April 2006, £6,316,660 (2005: £4,189,638) has been donated by the group by way of

direct grants to operative charities. statements.

Individual donations are listed in note 20 to these financial

Major projects included medical grants to Kings College London (£886,356) - stem cell neurodegenerative and to the Oxford Radcliffe Hospitals Charitable Funds (£2,500,000).

4

 

f

10

THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' report (continued)

Financial review

Net incoming resources for the group for the year, before grants payable and rentals foregone on charitably let properties of £6,620,660 (2005: £4,189,638) are £7,030,845 (2005: £ 5,794,503).

After a surplus on revaluation of investment properties and investments of £18,456,786 (2005:

£2,849,682) and a realised surplus on sales of properties of £1,340,422 (2005: deficit of £467,866), the net movement in funds for the year is £20,207,393 (2005: £3,986,681).

Fund balances at the year end are £144,753,753 (2005:£124,546,322) of which £140,829,524 (2005:£112,154,784) is represented by investment properties and investments, and the balance of £3,924,191 (2005:£12,391,538) is available reserves for grant commitments and working capital.

Reserves policy

In

order to provide income to enable the group to fulfil its charitable objectives and make grants, it

is

necessary to maintain and fund assets to generate this income. The group therefore must

retain unrestricted funds at least equal to the value of the property and other fixed asset investments, together with additional funds to accommodate grant allocations for large projects which extend over more than one year.

Plans for future periods

At the balance sheet date, the trustees had committed to support a number of projects by means of

 

Q

grants for periods of two or three years. During previous years the trustees have committed £6,000,000 from the group towards the theatres development on the Chelsea site of the Royal

~

Marsden Hospital. During this year stage payments of this grant of £3,000,000 have been made by the group. The balance of this grant, together with other committed grants has been provided for in these financial statements (see note 11 and 12).

The trustees also customarily make annual but uncommitted grants to major providers in the

educational and welfare fields and for scientific and medical research.

satisfactory annual reports and review, medical projects being also subject to review by the Trust's medical adviser, the grants are considered uncommi tted and have not been provided for in these statements.

As these grants require

It is the trustees' intention to continue to preserve the capital, invested predominately in property,

with an emphasis on commercial rather than residential properties.

accommodate large projects as referred to above, the trustees' current policy is to match expenditure to incoming resources over the medium term.

Not withstanding the need to

Tax status

The Trust is entitled to exemption from taxation on income and capital gains to the extent that its funds are applied for charitable purposes.

Auditors

A resolution to reappoint Chantrey Vellacott DFK LLP will be proposed at the fort hcoming

general meeting.

5

annual

THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' report (continued)

Statement of trustees' responsibilities

The trustees are responsible for preparing the financial statements in accordance with applicable law and regulations. Charity law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare their financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a

true and fair view of the state of affairs of the Trust and of the group and of the surplus or deficit

In preparing these financial statements the trustees

of the Trust and of the group for that period. are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

P-0

• state whether applicable UK Accounting Standards have been

followed,

material departures disclosed and explained in the financial statements;

subject to any

• prepare the financial statements on the going concern

basis unless it is inappropriate to

presume that the Trust and the group will continue in existence.

Each trustee has taken all steps that they ought to have taken as trustees in order to make themselves aware of any information relevant to the audit and to ensure that the auditors are aware of all relevant audit information. As far as each trustee is aware, there is no relevant audit

Q information of which the charity's auditors are unaware.

~ The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust and the group and enables them to ensure

thatthat the financial statements comply with the Charities Act 1993.

They are also responsible for

~ safeguarding the assets of the Trust and the group and hence for taking reasonable steps for the

~ prevention and detection of fraud and other irregularities.

This report was approved by the trustees on q~ 2-.~~

6

and signed on their behalf.

THE CHARLES WOLFSON CHARITABLE TRUST

Independent auditors' report to the trustees of The Charles Wolfson Charitable Trust

We have audited the financial statements of The Charles Wolfson Charitable Trust for the year ended 5 April 2006 which comprise the Consolidated and Trust statement of financial activities, Consolidated and Trust balance sheets, Consolidated cash flow statement, and the related notes. These financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the Trust's trustees, as a body, in accordance with section 44 of the

Charities Act 1993.

trustees 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 Trust and the Trust's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Our audit work has been undertaken so that we might state to the Trust's

Respective responsibilities of the trustees and auditors

The trustees' responsibilities for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Trustees' Responsibilities.

We have been appointed auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Charities Act 1993.

~ We report to you whether in our opinion the information given in the trustees' report is consistent with the financial statements.

We also report to you if, in our opinion, the Trust and the group have not kept proper

records, if we have not received all the information and explanations we require for our audit, or if

information specified by law regarding trustees' remuneration and other transactions is not disclosed.

accounting

We read other information contained in the trustees' report, and consider the implications for our report if we become aware of any misstatements within it.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Trust's and the group's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

7

THE CHARLES WOLFSON CHARITABLE TRUST

Independent auditors' report to the trustees of The Charles Wolfson Charitable Trust

Opinion

In our opinion:

• the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the Trust's and group's affairs as at 5 April 2006 and of its incoming resources and application of resources, for the year then ended; and

• the financial statements have been properly prepared in accordance with the Charities Act 1993; and

• the information given in the trustees' report is consistent with the financial statements.

F--~

~4

~4

t~

CHANTREY VELLACOTT DFK`4LLP

O

Chartered Accountants

Registered Auditors

Qj

London

Date:

8

0

THE CHARLES WOLFSON CHARITABLE TRUST

Consolidated statement of financial activities for the year ended 5 April 2006

rr~

~

~

Unrestricted funds

 

General

 

Notes

funds

Incoming resources

£

Incoming resources from generated funds Investment income

 

- Rental income

2

7,395,764

- Bank interest

719,889

- Other interest

3

186,109

- Dividends

233,603

Total incoming resources

 

8,535,365

Resources expended

 

Costs of generating funds

4

1,362,083

Charitable activities

5

6,740,097

Governance costs

6

23,000

Total resources expended

8,125,180

Net incoming resources for the year before transfers

410,185

Designated capital expenditure

14a

Movement in funds

14a

105,115

Net income/(expenditure) for the year

515,300

Gains and losses on revaluations and investment asset disposals Surplus on revaluation

 

-

Investment properties

7a

8

-

-

-

Investments Realised surplus/(deficit) on sale of investment properties

14a

Net movement in funds

 

515,300

Fund balances brought forward

26,716,248

Fund balances carried forward

27,231,548

Designated

2006

2005

funds

Total

Total

£

£

£

-

7,395,764

6,483,582

-

719,889

838,476

-

186,109

21,539

-

233,603

221,586

-

8,535,365

7,565,183

-

1,362,083

1,531,767

-

6,740,097

4,404,551

-

23,000

24,000

-

8,125,180

5,960,318

-

410,185

1,604,865

(105,115)

(105,115)

410,185

1,604,865

17,203,649

17,203,649

1,603,258

1,253,137

1,253,137

1,246,424

1,340,422

1,340,422

(467,866)

19,692,093

20,207,393

3,986,681

97,830,074 124,546,322120,559,641

117,522,167 144,753,715124,546,322

The notes on pages 14 to 28 form part of these financial statements.

9

THE CHARLES WOLFSON CHARITABLE TRUST

Trust statement of financial activities for the year ended 5 April 2006

Unrestricted funds

Incoming resources

Incoming resources from generated funds Investment income

- Rental income

- Bank interest

- Other interest

- Dividends

Incoming resources from charitable activities Grants receivable from Benesco Charity Limited

Total incoming resources

Resources expended

Costs of generating funds

activities

Governance costs

Total resources expended

Net incoming resources for the year

Gains and losses on revaluations and investment asset disposals Surplus on revaluation of investments

Net movement in funds

Funds balances brought forward

Fund balances carried forward

 

General

Designated

2006

2005

Notes

funds

funds

Total

Total

£

£

£

£

2

-

-

32,987

-

32,987

40,469

3

3,802

-

3,802

-

233,603

-

233,603

221,586

270,392

-

270,392

262,055

6,000,000

-

6,000,000

3,800,000

6,270,392

-

6,270,392

4,062,055

4

-

-

-

5

6,134,026

-

6,134,026

4,036,751

-Charitable

6

4,000

-

4,000

4,000

6,138,026

-

6,138,026

4,040,751

132,366

132,366

21,304

8

1,253,137

1,253,137

1,246,424

 

132,366

1,253,137

1,385,503

1,267,728

73,939

6,810,239

6,884,178

5,616,450

206,305

8,063,376

8,269,681

6,884,178

The notes on pages 14 to 28 form part of these financial statements.

10

THE CHARLES WOLFSON CHARITABLE TRUST

Consolidated balance sheet at 5 April 2006

Fixed assets

Tangible assets Investments Intangible assets

Current assets Debtors Cash at bank, including deposits

Creditors: amounts failing due

within one year

Net current assets

Total assets less current liabilities

Creditors: amounts falling due after more than one year

Net assets

Unrestricted funds

General funds Designated funds

Notes

2006

2005

£

£

7a

132,359,001

104,937,398

8

8,470,523

7,217,386

9

-

-

 

140,829,524

112,154,784

10

3,123,219

5,893,728

10,299,688

16,353,498

13,422,907

22,247,226

11

(5,987,836)

(4,556,744)

7,435,071

17,690,482

148,264,595

129,845,266

12

(3,510,880)

(5,298,944)

144,753,715

124,546,322

13a

27,231,548

26,716,248

14a

117,522,167

97,830,074

144,753,715

124, 546,322

The financial statements were approved by the trustees on Z~J'.~

and signed.

Wolfso~

I Jr

r-----"~

Dr Levene

) )

)

Trustees

)

)

)

The notes on pages 14 to 28 form part of these financial statements.

11

THE CHARLES WOLFSON CHARITABLE TRUST

Trust balance sheet at 5 April 2006

Notes

 

Fixed assets

Tangible assets

7b

Investments

8

Current assets Debtors Cash at bank, including deposits

10

Creditors: amounts falling due within one year

11

Net current assets

Total assets less current liabilities

Creditors: amounts falling due after

more than one year

12

Net assets

O

V

 

Unrestricted funds General funds

13b

Designated funds

14b

N

~

The financial statements were approved by the trustees on za I -~~

DrLevene

)

)

Trustees

2006

2005

£

£

1

11,898

8,470,523

7,217,386

8,470,524

7,229,284

4,730,755

4,340,755

922,552

36,224

5,653,307

4,376,979

(3,093,270)

(1,673,141)

2,560,037

2,703,838

11,030,561

9,933,122

(2,760,880)

(3,048,944)

8,269,681

6,884,178

206,305

73,939

8,063,376

6,810,239

8,269,681

6,884,178

and signed.

The notes on pages 14 to 28 form part of these financial statements.

12

THE CHARLES WOLFSON CHARITABLE TRUST

Consolidated cash flow statement for the year ended 5 April 2006

Notes

Net cash inflow/(outflow) from operating activities

15a

Returns on investments and servicing of finance Dividends received Interest received

Net cash inflow from returns on investment and servicing of finance

Capital expenditure

Purchase of tangible fixed assets

 

Sale of tangible fixed assets

Net cash (outflow)/inflow from capital expenditure

Acquisitions and disposals

Acquisition of subsidiary

15b

Cash in acquired

subsidiary

15b

Net cash outflow from acquisitions and

Decrease in cash in the year

disposals

15c, 15d

2006

2005

£

£

1,847,088

(7,992,219)

233,603

221,586

746,005

1,009,358

979,608

1,230,944

(30,533,851)

(197,242)

21,653,345

3,502,134

(8,880,506)

3,304,892

-

(1,575,462)

-

141,114

-

(1,434,348)

(6,053,810)

(4,890,731)

The notes on pages 14 to 28 form part of these financial statements.

13

J THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

1. Accounting policies

The financial statements have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005) issued in March 2005, and applicable Accounting Standards. A summary of the more important accounting policies which have been consistently applied is set out below.

1.1 Accounting convention

The financial statements are prepared under the historical cost convention as modified by the revaluation of certain fixed assets.

1.2 Changes in accounting policies In preparing the financial statements for the current year, the Trust has adopted the presentation requirements of FRS 25 Financial Instruments: Disclosure and Presentation in this financial year. As a result, certain items such as cash, deposits, debtors, creditors and loans have been designated as financial instruments. However, this has had no effect on the presentation or measurement of amounts shown in the corresponding financial statements.

Financial instruments Financial assets such as cash and debtors are measured at the present value of the amounts receivable, less an allowance for the expected level of doubtful receivables. Financial liabilities such as trade creditors, loans and finance leases are measured at the present value of the obligation. An equity instrument is any contract that evidences a residual interest in the assets of the Trust after deducting all of its liabilities.

Basis of consolidation

The group financial statements consolidate the financial statements of the Trust and Benesco

undertakings on a line by line basis for the financial year ended

and

5 April 2006.

its

subsidiary

Designated funds Designated funds are as follows:

Property and investment capital fund

Realised surpluses on the disposal of investment properties and investments are transferred to the capital fund. In the trustees' opinion this should ensure that there are sufficient funds to guarantee the continued existence of the charity. Unrealised revaluation surpluses are also transferred to the capital fund.

Property maintenance fund The trustees plan in advance for substantial future commitments and provide for them by way of appropriations from general funds to designated funds. The costs of these projects when they arise are then charged directly to these funds.

The majority of this fund relates to cyclical refurbishment costs. Transfers are made to this

fund to provide for the expected future costs of major refurbishments as soon as the

likely

timing and costs involved can be evaluated with reasonable accuracy. Provision is also made for minor refurbishments necessary at the expiry of occupational leases, again as soon as the likely timing and costs involved can be evaluated with reasonable accuracy.

14

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

1.

Accounting policies (continued)

1.5

Tangible fixed assets and depreciation

Investment properties

Investment properties are revalued annually and included in the balance sheet at their market value. The surplus or deficit over book value is transferred to the revaluation fund which forms part of the capital fund. Although this accounting policy is in accordance with the applicable accounting standard, SSAP 19, Accounting for investment properties, it is a

departure from the general requirement of the Companies Act 1985 for all tangible assets to be depreciated. In the opinion of the trustees compliance with the standard is necessary for

many

the financial statements to give a true and fair view. Depreciation is only one of the

factors reflected in the annual valuation and the amount of this which might otherwise have

been charged cannot be separately identified or quantified.

Office equipment and motor vehicles

Depreciation is charged at the following rates:

Office equipment -

15% per annum on a reducing balance basis, or 20% on a straight line basis 25% on a reducing balance basis

Motor vehicle -

Capitalisation policy Individual items under £1,000 are not capitalised unless part of a larger project or asset purchase.

Fixed asset Investments Fixed asset investments are carried at market value. The surplus arising on revaluation is transferred to the revaluation reserve which forms part of the property and investment capital fund.

Income from investments Income from investments is included, together with the related tax credit, in the income and expenditure account on the accruals basis.

Deposit and loan interest Interest is included in the income and expenditure account on receipt.

1.9 Provision of se rvices

The trustees of the Trust and the directors of Benesco and its subsidiary companies receive no

remuneration for their services.

Furthermore, no value has been attributed to the provision of

services by the trustees or directors.

1.10 Incoming resources and resources expended Incoming resources, including rent and interest, are recognised when receivable. For leasehold investment properties ground rents payable are netted against rent receivable from that property to give a true and fair reflection of property income.

Donations and legacies are accounted for on a receivable basis. Grants payable are recognised in full at the point at which a legal or constructive obligation arises. If these

obligations are for a period of greater than one year, the creditor for the part due after more than one year from the balance sheet date is disclosed as such. No discount factors are

All other resources expended are recognised as they become

applied to such liabilities. payable.

15

 

,

,

THE CHARLES WOLFSON CHARITABLE TRUST

 

Notes to the financial statements for the year ended 5 April 2005

1.

Accounting policies (continued)

1.10

Se rvice charge As agents of the group, MERJS Limited (formerly Ross Jaye Sayer & Co. Limited) the group's investment property managers, manage the service charge account on behalf of the tenants of the group's investment properties. All costs, including those relating to the employment of 12 staff (2005: 11) are reimbursed by the tenants.

 

These costs and reimbursements are not included in the income and expenditure account of the group as they are incurred solely on behalf of the tenants and consequently are dealt with in the service charge accounts of MERJS Limited with regard to each property.

 

2.

Investment income - Rental income

 
 

Group

Trust

 

2006

2005

2006

2005

£

£

£

£

 

Rents receivable

7,285,489

6,243,943

less: ground rents

(59,725)

(119,450)

 

~--~

 

7,225,764

6,124,493

 

Charitable rent foregone

170,000

189,246

-

Charitable rent received Lease surrender and

-

13,925

-

extension premiums

-

155,918

-

 

0

(i

Total rental income

7,395,764

6,483,582

-

 

3.

Investment income - Other interest

 
 

Group

Trust

 

~

 

2006

2005

2006

2005

£

£

£

£

 

Loan interest receivable

21,460

21,125

-

-

Other interest receivable

164,649

414

3,802

-

Total other interest

186,109

21,539

3,802

16

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

4. Costs of generating funds

Property expenses Repairs, rates and other non-

rechargeable property expenses Irrecoverable service charges

Property management expenses Agents' management fees not recoverable Agents' rent review and letting fees Legal expenses

Total property expenses

5. Charitable activities

Grants payable (see Note 20) Indemnity Insurance - charity Indemnity Insurance - trustees Consultancy & professional fees General office expenditure Sundry expenses

Medical advisor's expenses Wages and salaries Pension costs Depreciation Amortisation

 

Group

Trust

2006

2005

2006

2005

£

£

£

F

356,444

792,640

340,794

69,823

697,238

862,463

305,765

324,969

133,504

175,685

225,576

168,650

664,845

669,304

1,362,083

1,531,767

Group

Trust

2006

2005

2006

2005

£

£

£

£

6,620,660

4,189,638

6,100,200

3,979,267

13,686

12,786

4,687

4,687

521

521

521

521

59,702

96,504

8,923

31,080

27,307

27,004

1,582

2,338

221

89

113

35

1,025

2,400

1,025

2,400

-

10,445

-

10,445

14,001

2,000

14,001

2,000

2,974

3,978

2,974

3,978

-

59,186

-

-

6,740,097

4,404,551

6,134,026

4,036,751

The average number of persons employed, who were engaged in management and administration was nil (2005: 1). No employee earned more than £50,000 in either year.

No trustees were reimbursed for any expenses as trustees during this year or the previous year.

6. Governance costs

Group

Trust

 

2006

2005

2006

2005

£

£

£

F-

Audit fees

23,000

24,000

4,000

4,000

17

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

7.

Tangible fixed assets

(a)

Group

Vehicle and

£

£

 

Cost or valuation

Investment properties office Freehold Leasehold equipment £

Total

£

At 6 April 2005

98,150, 500

6,775,000

157,764

105, 083,264

Additions

30,533,851

-

-

30,533,851

Surplus on revaluation

17,203,649

-

(6,775,000)

-

17,203,649

Disposals

(13,529,000)

(21,150) (20,325,150)

At 5 April 2006

132,359,000

-

136,614 132,495,614

Depreciation At 6 April 2005

145,866

145,866

Charge for the year

2,974

2,974

Disposals

(12,227)

(12,227)

At 5 April 2006

136,613

136,613

Net book value At 5 April 2006

132,359,000

-

1

132,359,001

At 5 April 2005

98,150,500

6,775,000

11,898 104,937,398

The investment properties have been valued by the Trust's property managers on a market value basis as at 5 April 2006.

If stated under historical cost principles, the comparable amounts for the investment propert ies

would be:

 

2006

2005

£

£

Cost

69,512,951

42,884,131

18

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

7.

Tangible fixed assets (continued)

(b)

Trust

Vehicle and

 

office

equipment

Total

 

Cost or valuation

£

£

At 6 April 2005

21,582

21,582

Additions Disposals

(21,150)

(21,150)

At 5 April 2006

432

432

Depreciation At 6 April 2005

9,684

9,684

Charge for the year

2,974

2,974

Disposals

(12,227)

(12,227)

At 5 April 2006

431

431

Net book value At 5 April 2006

1

1

At 5 April 2005

11,898

11,898

8.

Fixed asset investments

 

Group

Trust

 

2006

2005

2006

2005

Market value at 6 April 2005 Surplus on revaluation

Market value at 5 April 2006

£

£

£

£

7,217,386

5,970,962

7,217,386

5,970,962

1,253,137

1,246,424

1,253,137

1,246,424

8,470,523

7,217,386

8,470,523

7,217,386

These investments are listed on the London International Stock Exchange. The Trust's investments at 5 April 2005 consisted of ordinary shares in Great Universal Stores plc. At 5 April 2006, as a result of the de-merger during the year of Burberry Group plc, the Trust's investments consist of shares in both companies. If stated under historical cost principles, the comparable amounts for the investments would be:

 

Group

Trust

2006

2005

2006

2005

£

F-

£

£

Cost

407,146

407,146

407,146

407,146

Cost represents the market value of the investments at the date when they were settled on the Trust.

19

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

9. Intangible assets - Group

Q

 

Goodwill

£

Cost At 6 April 2005 and 5 April 2006

59,186

Amortisation At 6 April 2005 and 5 April 2006

59,186

Net book value At 5 April 2005 and 5 April 2006

10. Debtors

 

Group

Trust

 

2006

2005

2006

2005

£

£

£

£

Due from managing agents

2,374,823

3,244,429

Rent arrears

269,969

451,949

Service charges recoverable

17,001

9,139

Benesco Charity Limited

4,700,000

4,300,000

Other debtors and prepayments

461,426

2,188,211

30,755

40,755

3,123,219

5,893,728

4,730,755

4,340,755

~ Included within group other debtors and prepayments in the previous year was a deposit of £1,747,084 relating to the purchase of an investment property in Llanelli, Wales, the purchase of which was completed in May 2005.

4S

Group other debtors and prepayments include an amount of £300,000 ( 2005: £300,000) which is due after one year.

11. Creditors: amounts falling due within one year

 

Group

Trust

 

2006

2005

2006

2005

£

£

£

£

Other taxes and social security

206,029

184,766

-

776

Other creditors

199,235

-

Accruals and deferred income

1,745,842

1,959,613

6,540

10,000

Grants committed

3,836,730

2,412,365

3,086,730

1,662,365

5,987,836

4,556,744

3,093,270

1,673,141

12. Creditors: amounts falling due after more than one year

 

Group

Trust

 

2006

2005

2006

2005

£

£

£

F-

Grants committed

3,510,880

5,298,944

2,760,880

3,048,944

20

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

O
(i

13.

General fund

 

2006

a)

Group

£

At 6 April 2005

26,716,248

Net movement in funds

515,300

At 5 April 2006

27,231,548

 

2006

b)

Trust

£

At 6 April 2005

73,939

Net movement in funds

132,366

At 5 April 2006

206,305

14.

Designated funds

a)

Group

Property and investment capital fund

2005

£

24,378,812

2,337,436

26,716,248

2005

F-

52,635

21,304

73,939

 

Realised

Unrealised

Property

surplus on

revaluation

maintenance

2006

2005

disposal

reserve

fund

Total

Total

£

£

£

£

£

At 6 April 2005

28,873,390

68,851,569

105,115

97,830,074 96,180,829

Expenditure

- revenue

- capital

Movement in fund Movement due to revaluation in year Realised (deficit)/ surplus on sale of investment properties 17,739,352

At 5 April 2006

46,612,742

 

- -

(497,443)

- -

(197,243)

 

(105,115)

(105,115)

(37,885)

18,456,786

-

18,456,786

2,849,682

(16,398,930)

-

1,340,422

(467,866)

70,909,425

- 117,522,167

97,830,074

21

, .

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

14.

Designated funds (continued)

b)

Trust

Property and investment capital fund

 

Realised

Unrealised

Property

surplus on

revaluation

maintenance

2006

2005

disposal

fund

fund

Total

Total

£

£

£

£

£

At 6 April 2005

-

6,810,239

-

6,810,239

5,563,815

Movement due to revaluation in year

1,253,137

-

1,253,137

1,246,424

At 5 April 2006

8,063,376

-

8,063,376

6,810,239

15.

Notes to the cash flow statement

 

a)

Reconciliation of net income for the

year to net cash ouflow from operating activities

 
 

2006

2005

£

f

 

Net income for the year

410,185

1,604,865

Dividend receivable

(233,603)

(221,586)

Interest receivable

(741,349)

(859,601)

Depreciation

2,974

3,978

Amortisation Decrease/(increase) in debtors

59,186

- 2,765,853 (2,722,190)

 

Decrease in creditors

(356,972)(5,856,871)

Net cash inflow/(outflow) from operating activities

1,847,088 (7,992,219)

b)

Acquisition of subsidiary

 

Acquisition

2005

£

Consideration paid

(1,575,462)

Fixed assets

8,000,000

Debtors

35,115

Cash

141,114

Creditors

(6,659,953)

Fair value of subsidiary acquired

1,516,276

Goodwill on acquisition

(59,186)

22

i

10 THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006

15.

Notes to the cash flow statement (continued)

 

c)

Analysis of changes in net debt

 
 

At 6 April

2005

Cashflow

£

£

 

Cash at bank and in hand

 

16,353,498

(6,053,810)

d)

Reconciliation of net cashflow to movement in net debt

 

2006

£

 

Decrease

in cash in the year

 

(6,053,810)

Net funds

at

the

beginning of the

year

16,353,498

Net funds

at

the end of the year

10,299,688

16.

Analysis of net assets between funds

 

Group

General

Designated

At 5 April

2006

£

10,299,688

2005

F

(4,890,731)

21,244,229

16,353,498

Fixed assets

Current assets

Creditors

Trust

Fixed assets

Current assets

Creditors

Funds

funds

Total

£

£

£

23,307,357

117,522,167

140,829,524

13,422,907

-

13,422,907

(9,498,716)

-

(9,498,716)

27,231,548

117,522,167

144,753,715

General

Designated

fund

funds

Total

£

£

£

407,148

8,063,376

8,470,524

5,653,307

-

5,653,307

(5,854,150)

-

(5,854,150)

206,305

8,063,376

8,269,681

17. Related party transactions

These financial statements include the costs of legal expenses amounting to £332,952(2005: £173,554) provided to the group by its solicitors William Sturges & Co, of which M M Franks, company secretary of Benesco Charity Limited, is a partner. This represents professional fees charged at commercial rates. £225,576 (2005: £160,688) is included.in direct property expenses and the balance of £107,376 (2005: £12,866), which relates to the sale of assets, has been set against the sale proceeds.

23

. THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April