Arthros Limited - Charities report - 19.1

REGISTERED COMPANY NUMBER: 10711932 (England and Wales)

REGISTERED CHARITY NUMBER: 1173724

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2019

for

Arthros Limited

Previously known as

Arthros

Arthros Limited

Contents of the Financial Statements

for the Year Ended 31 March 2019

Page

Report of the Trustees

1 to 3

Statement of Trustees Responsibilities

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Statement of Financial Position

7

Statement of Cash Flows

8

Notes to the Statement of Cash Flows

9

Notes to the Financial Statements

10 to 14

Arthros Limited

Report of the Trustees

for the Year Ended 31 March 2019

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 2019. 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 object of the charity is to provide relief of sickness amongst Sufferers from Arthritis and other related

diseases ("the Sufferer") within a radius of twenty five miles from St.Mary's Church, the Butts, Reading.

This is achieved firstly by securing nomination rights on flats adapted for the use of people who have been disabled by

arthritis and by the purchase and adaptation of homes suited to the needs of Sufferers who have dependants, entering

into joint ownership schemes where this is deemed necessary. Secondly, grants are made for small building works to

adapt existing homes for use by Sufferers who need minor schemes, to purchase specialist beds, chairs or other

equipment intended to relieve suffering from arthritis and to support a group providing exercises designed to enable

Sufferers to maintain their independence. Grants are also provided to Sufferers to assist with the costs of temporary

nursing care accommodation and physiotherapy treatments. Thirdly, we seek to secure the best help for Sufferers in the

Reading Area from local health agencies, Social Services and other public bodies and to pursue complaints on their

behalf, if these appear to us to be justified.

Significant activities, achievement and performance

At the beginning of the year the company took over the investment portfolio of Arthros the Trust (Charity number

900314) which had a value of £851,416. The company plans to also take over the property portfolio once the necessary

paperwork has been signed. The value of this portfolio at 1 April 2018 was £688,468. Additional advances to investment

properties of £13,142 were made during the year.

During the year to 31st March 2019 we met various local Sufferers and assisted them in accordance with our Objectives.

Small grants were made as recommended by the subcommittees of Trustees who met the applicants.

Public benefit

The trustees declare that they have complied with the duty imposed under the Charities Act 2011 to have due regard to

public benefit guidance published by the Charity Commission.

Grants

During the year the arrangement with Court Housing for specially designed flats to be made available for the use of

tenants nominated by Arthros in Court Housing's Chimney Court in Reading, now run by A2 Dominion, without cost in

subsidy or payments for casual vacancies was maintained. No grants in contributions to benefit tenants of Chimney

Court were made in this or the previous year.

The Trustees received further enquiries for help and have made grants of £13,689 in the year. Applications are initially

investigated by a subcommittee of Trustees which pursues enquiries and pays smaller grants and recommends those in

excess of £2,000 to the board of Trustees. In considering how best to meet the needs of Sufferers to be accommodated

at Chimney Court or elsewhere, the fees of an architect have been incurred and are included in the operating expenses.

£11,621 was spent on repairs and modifications to properties and this figure includes incidental professional fees.

FINANCIAL REVIEW

Financial position

Funds held represent the transfer of funds, assets and liabilities from Arthros the Trust (Charity No: 900314), less

transactions made during the year.

The Trustees have not actively sought to promote income generation as they regard their primary duty is to use the

funds already donated to them.

Reserves policy

It will be the policy of the charity that unrestricted funds which have not been designated for a specific use should be

maintained at a level equivalent to between three and six months expenditure. The trustees 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 charity'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.

Going concern

At the time of signing these accounts, the trustees do not believe that there are any material uncertainties related to

events or conditions that cast significant doubt upon the charity's ability to continue as a going concern.

Principle risks and uncertainties

The Trustees have considered the risks facing the charity and believe that they have in hand the right policies and people

to protect the assets for which they are responsible. Redmayne Bentley LLP continues to manage the portfolio of

investments.

Maintaining effective links with the people we are set up to help, requires the appointment of further younger Trustees

and this we continue to pursue.

FUTURE PLANS

The remaining assets and liabilities of Arthros the Trust (Charity No: 900314) will be transferred to Arthros Limited during

the 2019/20 financial year and the company will continue with the same charitable activities.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, the memorandum and articles, and constitutes a limited company,

limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

Trustees are appointed by invitation. The charity is currently looking for new trustees with inter personal skills, as well as

knowledge of Arthritis and ways to provide relief to Sufferers.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

10711932 (England and Wales)

Registered Charity number

1173724

Registered office

3 Freesia Close

Wokingham

RG41 3NE

Trustees

R M Borthwick

J S Milward

R C H Morton

M Ray-Smith

Mrs L Turner

Independent examiner

Susan Ambrose FCA

ICAEW

Butt Miller

Chartered Accountants

92 Park Street

Camberley

Surrey

GU15 3NY

CHANGE OF NAME

The charitable company passed a special resolution on 29 November 2018 changing its name from Arthros to Arthros Limited .

FUNDS HELD AS CUSTODIAN FOR OTHERS

We hold no such funds.

Approved by order of the board of trustees on 11 July 2019 and signed on its behalf by:

M Ray-Smith - Trustee

Arthros Limited

Statement of Trustees Responsibilities

for the Year Ended 31 March 2019

The trustees (who are also the directors of Arthros Limited for the purposes of company law) are responsible for

preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom

Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view

of the state of affairs of the charitable company and of the incoming resources and application of resources, including

the income and expenditure, of the charitable company for that period. In preparing those financial statements, the

trustees are required to

-

select suitable accounting policies and then apply them consistently;

-

observe the methods and principles in the Charity SORP;

-

make judgements and estimates that are reasonable and prudent;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time

the financial position of the charitable company and to enable them to ensure that the financial statements comply with

the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent Examiner's Report to the Trustees of

Arthros Limited

Independent examiner's report to the trustees of Arthros Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2019.

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

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies

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

Susan Ambrose FCA

ICAEW

Butt Miller

Chartered Accountants

92 Park Street

Camberley

Surrey

GU15 3NY

11 July 2019

Arthros Limited

Statement of Financial Activities

for the Year Ended 31 March 2019

Period

6.4.17

Year Ended

to

31.3.19

31.3.18

Unrestricted fund

Total funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

300

-

Investment income

3

30,801

-

Other income

4

851,416

-

Total

882,517

-

EXPENDITURE ON

Raising funds

5

16,237

-

Charitable activities

6

Grants

13,689

-

Other

9

2,860

1,025

Total

32,786

1,025

Net gains/(losses) on investments

(25,676

)

-

NET INCOME/(EXPENDITURE)

824,055

(1,025

)

RECONCILIATION OF FUNDS

Total funds brought forward

(1,025

)

-

TOTAL FUNDS CARRIED FORWARD

823,030

(1,025

)

Arthros Limited

Statement of Financial Position

At 31 March 2019

2019

2018

Unrestricted fund

Total funds

Notes

£

£

FIXED ASSETS

Investments

13

825,740

-

CURRENT ASSETS

Prepayments and accrued income

2,218

-

Cash at bank

42,969

1,975

45,187

1,975

CREDITORS

Amounts falling due within one year

14

(47,897

)

(3,000

)

NET CURRENT ASSETS/(LIABILITIES)

(2,710

)

(1,025

)

TOTAL ASSETS LESS CURRENT LIABILITIES

823,030

(1,025

)

NET ASSETS/(LIABILITIES)

823,030

(1,025

)

FUNDS

15

Unrestricted funds

823,030

(1,025

)

TOTAL FUNDS

823,030

(1,025

)

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 March 2019 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 special provisions of Part 15 of the Companies Act

2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 11 July 2019 and were signed on its behalf by:

M Ray-Smith -Trustee

Arthros Limited

Statement of Cash Flows

for the Year Ended 31 March 2019

Period

6.4.17

Year Ended

to

31.3.19

31.3.18

Notes

£

£

Cash flows from operating activities:

Cash generated from operations

1

(14,212

)

1,975

Net cash provided by (used in) operating activities

(14,212

)

1,975

Cash flows from investing activities:

Purchase of fixed asset investments

(27,031

)

-

Sale of fixed asset investments

51,776

-

Interest received

19

-

Dividends received

30,442

-

Net cash provided by (used in) investing activities

55,206

-

Change in cash and cash equivalents in the reporting period

40,994

1,975

Cash and cash equivalents at the beginning of the reporting period

1,975

-

Cash and cash equivalents at the end of the reporting period

42,969

1,975

Arthros Limited

Notes to the Statement of Cash Flows

for the Year Ended 31 March 2019

1.	RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Period

6.4.17

Year Ended

to

31.3.19

31.3.18

£

£

Net income/(expenditure) for the reporting period (as per the statement of financial activities)

824,055

(1,025

)

Adjustments for:

Interest received

(19

)

-

Dividends received

(30,442

)

-

Investment transfers received

(851,416

)

-

Revaluation of investments

931

-

Increase in debtors

(2,218

)

-

Increase in creditors

44,897

3,000

Net cash provided by (used in) operating activities

(14,212

)

1,975

Arthros Limited

Notes to the Financial Statements

for the Year Ended 31 March 2019

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 with the exception of

investments which are included at market value, as modified by the revaluation of certain assets.

Arthros is a private limited company, limited by guarantee, and registered in England and Wales. The address of

the registered office is set out in the Trustees report.

The previous accounting period was the first period since incorporation and as such was shorter then one year.

As a result the comparative amounts presented in the financial statements (including the related notes) are not

entirely comparable.

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

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is

probable that the income will be received and the amount can be measured reliably.

Donations - donations are only included in the SoFA when the charity has unconditional entitlement to the

resources.

Investment income - this is included in the accounts when receivable.

Rental income - this is recognised over the period of the rental.

Investment gains and losses - this includes any gain or loss on the sale of investments and any gain or loss

resulting from revaluing investments to market value at the end of the year.

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.

Other costs - include costs of the preparation and examination of statutory accounts, the costs of Trustee

meetings and the cost of any legal advice to Trustees in governance or constitutional matters.

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

but not accrued as expenditure.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Fixed asset investments

Listed investments are included at closing market value at the balance sheet date. Any gain or loss during the

year is taken to the Statement of Financial Activities.

2.	DONATIONS AND LEGACIES

Period

6.4.17

Year Ended

to

31.3.19

31.3.18

£

£

Donations

300

-

3.	INVESTMENT INCOME

Period

6.4.17

Year Ended

to

31.3.19

31.3.18

£

£

Rents received

340

-

Dividends

30,442

-

Deposit account interest

19

-

30,801

-

4.	OTHER INCOME

Period

6.4.17

Year Ended

to

31.3.19

31.3.18

£

£

Exceptional items

851,416

-

At the beginning of the financial year Arthros the Trust transferred its share portfolio to Arthros Limited. This

included a cash balance of £8,107.

5.	RAISING FUNDS

Investment management costs

Period

6.4.17

Year Ended

to

31.3.19

31.3.18

£

£

Portfolio management

4,585

-

Property repairs

11,621

-

Support costs

31

-

16,237

-

The company has paid for property repairs in advance of a property portfolio being transferred from Arthros the

Trust (Charity No: 900314).The transfer is likely to take place in the 2019/20 financial year.

6.	CHARITABLE ACTIVITIES COSTS

Grant funding of activities

Totals

(See note 7)

£

£

Grants

13,689

13,689

7.	GRANTS PAYABLE

Grants were made to individuals for small building works to adapt existing homes for use by Sufferers and to

purchase or repair specialist beds, chairs and other equipment intended to relieve suffering from arthritis. In

addition to this grants are also provided to Sufferers to assist with the costs of temporary nursing care

accommodation and physiotherapy treatments.

The only institutional grant made during the year was for £2,000 paid to Arthritis Matters.

8.	SUPPORT COSTS

Finance

Governance costs

Totals

£

£

£

Investment management costs

31

-

31

Other resources expended

60

2,800

2,860

91

2,800

2,891

9.

OTHER

Other expenditure includes the Independent Examiner's fee £2,800 (2018 - £1,000), Company House fees,

postage and stationery.

10.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2019 nor for the period

ended 31 March 2018.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2019 nor for the period ended

31 March 2018.

11.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

£

INCOME AND ENDOWMENTS FROM

EXPENDITURE ON

Other

1,025

Total

1,025

NET INCOME/(EXPENDITURE)

(1,025

)

TOTAL FUNDS CARRIED FORWARD

(1,025

)

12.

EMPLOYEES

The average number of employees during the year was NIL (2018 - NIL).

13.	FIXED ASSET INVESTMENTS

Listed investments

£

MARKET VALUE

Additions

878,447

Disposals

(51,776

)

Revaluations

(931

)

At 31 March 2019

825,740

NET BOOK VALUE

At 31 March 2019

825,740

At 31 March 2018

-

The year end value above includes £8,748 held as cash in a deposit account.

There were no investment assets outside the UK.

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Arthros the Trust

43,858

2,000

Accrued expenses

4,039

1,000

47,897

3,000

Arthros the Trust transferred its share portfolio to Arthros Limited at the beginning of the financial year. The

remaining assets are due to be transferred during the current year so that Arthros the Trust can be closed down.

When this event happens all balances will be transferred to the Statement of Financial Activities.

15.	MOVEMENT IN FUNDS

At 1.4.18

Net movement in funds

At 31.3.19

£

£

£

Unrestricted funds

General fund

(1,025

)

824,055

823,030

TOTAL FUNDS

(1,025

)

824,055

823,030

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

882,517

(32,786

)

(25,676

)

824,055

TOTAL FUNDS

882,517

(32,786

)

(25,676

)

824,055

Comparatives for movement in funds

Net movement in funds

At 31.3.18

£

£

Unrestricted Funds

General fund

(1,025

)

(1,025

)

TOTAL FUNDS

(1,025

)

(1,025

)

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

-

(1,025

)

(1,025

)

TOTAL FUNDS

-

(1,025

)

(1,025

)

16.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2019.