WORCESTER_BID_COMPANY_LIM - Accounts

The directors present their annual report and financial statements for the year ended 31 March 2020.

The principal activity of the Company in the period under review is to operate within the regulations set by the Government on Business Improvement Districts and ensure that the Company's strategy creates long term value for businesses within the Worcester Business Improvement District. The Company has five strategic objectives highlighted in the five-year business plan:

•     To help spread the word about Worcester and its businesses (Spreading the word);

•     To improve safety and security (Safer City);

•     To improve accessing and navigating the city centre (Getting out and About);

•     To make the BID area more attractive (Attractive City); and

•     To lobby on behalf of businesses on issues that matter most to them (Better Together).

Our aims in 2019/20 have been as follows:

Spreading the Word

•     To ensure that Worcester is on the map and tell people what we have to offer

•     Create fewer but larger events and support other providers to bring events to the city

•     Increase investment in promoting the city and its businesses

•     To promote the city’s business offering to residents, tourists, visitors and students

•     Encourage more coach parties to the city, ensuring that their dwell times increase

Safer City

•     To improve reporting and data gathering on important crime-related statistics

•     To provide more support and training for businesses to combat instances of theft and other anti-social behaviour

•     To help reduce crime and increase membership of CityNet and NightSafe

•     To assist in the development of a plan of action for NightSafe projects

Getting Out & About

•     To reduce the cost of parking for employees of BID businesses

•     To provide footfall and other trend data to businesses to help assess performance

Attractive City

•     To improve the provision of Christmas Lights

•     To make the city more appealing through seasonal floral decorations

•     To proactively look to reduce gull numbers in the city centre

Better Together

•     To work with and for businesses by lobbying to improve adverse trading conditions

•     To deliver more cost saving projects to help reduce business overheads

•     To deliver more subsidised / free training courses for staff

BID3 Renewal

During 2019/20 we have continued planning for the five-year period from April 2020, which following a successful renewal ballot in October 2019 will be our third BID term.

The October 2019 ballot for the third BID term was the most successful ballot in the BID’s ten-year history, with 51% turnout and a record 84.9% of city businesses voting in favour by number and with more than 82.8% of businesses by aggregate rateable value in support of another five-year term.

Income:

The detailed income and expenditure account on the final page of these statements highlights areas where a more detailed explanation is required.

Under the BIDs legislation, BID levy income is collected on behalf of the BID by the local authority, in this case Worcester City Council. The full amount collected each month is paid without deduction to Worcester BID. In year five of the second BID term, the BID levy has remained static at 1.5% of rateable value.

The BID3 Ballot was financed through a number of Non-Levy income sources. In the financial year 2019/20 £18,268 of Non-Levy income has been received, with BID3 Ballot related expenditure amounting to £12,646. It can therefore be demonstrated that the BID3 ballot costs have been fully funded by Non-Levy income as per the BID Regulations.

Project Expenditure:

Project expenditure was below planned levels, however new smarter working practices and a re-alignment of our marketing and communication strategy, allowed us to deliver new projects including The Worc Social, as well as seasonal campaigns and the popular Worcester Food Fest, together with the introduction of the new ‘AfterWorcFeaSt’ to attract a new audience and increase footfall after 5pm. This monthly evening pop up increased footfall during the event trading times by 42% supporting the surrounding night-time economy.

Safer City costs included continued investment in the DISC app to record all incidents and crime. This investment has led to more accurate data collection and saved time and resource for our BID businesses. We also launched ‘Best Bar None’ a well-recognised accreditation for the licensed premises, promoting a safe environment within Worcester’s night-time economy.

Attractive City expenditure has allowed the BIDs continued funding of ongoing projects including Christmas lights and seasonal flowers. Worcester BID also delivered a Worcester High Street Clean Up project during 2019/20 funded by a £15,000 grant awarded by Worcester City Council.

Increased Better Together expenditure has allowed investment in networking events such as City Sessions and CityNet meetings, as well as an enhanced training package offering brand new courses supporting with visual merchandising, customer service skills, leadership and management as well as an increase in the popular first aid at work courses.

Visit Worcester Legacy money:

In 2012, Visit Worcester gifted Worcester BID with £95,000 to invest in a project or projects which benefit the management of Worcester’s city centre and/or the city’s work to attract more visitors. The project/s should represent a legacy for the work done by Visit Worcester between 2007 and 2013 and its predecessor Worcester City Centre Forum. Two projects were identified for investment in 2019/20 however further progress has halted due to the emergence of COVID-19.

Projects and Personnel:

In 2019 Worcester BID achieved British BIDs accreditation, an independently assessed industry recognised standard, which has been an important objective for us to demonstrate to our levy payers and partners that the company is being managed to a high-quality standard. It enabled us to review and improve our processes and procedures and provide stakeholders with the confidence that Worcester BID has a robust and transparent governance system.

The BID Board Directors continue to give their time voluntarily and the BID Directors are also involved in the popular City Sessions meetings.

The directors shown below have held office during the whole of the period from 1st April 2019 to the date of this report.

Dr A S Gregson

Miss N D Williams – (Chair from 26 September 2019)

Mr M C Hughes

Ms A S Potze

Mr S Pisani

Directors who were appointed to the Board during 2019/2020 were:

Ms S Binnion - appointed 18 June 2019

Ms S L Matthews – appointed 18 June 2019

Mr D J Hill – appointed 28 November 2019 (following temporary resignation)

Mr P Parkinson – appointed 23 January 2020

Mr M Lloyd – appointed 24 April 2020

Other changes in directors holding office are as follows:

Mr T Evans - resigned 18 June 2019

Mr R Broomhead - resigned 14 July 2019

Mr D J Hill – resigned 18 July 2019 (reappointed 28 November 2019)

Mr P Meredith - resigned 6 August 2019

Mr R W Higham – resigned 7 October 2019 (Chair until 26 September 2019)

Mr R Wheatley – resigned 22 April 2020

Ms S L Matthews – resigned 30 April 2020

The company is a not for profit business. Directors give their services voluntarily and without any remuneration.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

We have audited the financial statements of Worcester BID Company Limited (the 'company') for the year ended 31 March 2020 which comprise the income and expenditure account, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•     give a true and fair view of the state of the company's affairs as at 31 March 2020 and of its deficit for the year then ended;

•     have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•     have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•     adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•     the financial statements are not in agreement with the accounting records and returns; or

•     certain disclosures of directors' remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit; or

•     the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's 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 company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

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

Worcester BID Company Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 4, Copenhagen Street, Worcester, Worcestershire, England, WR1 2EY. The company registration number is 07188738.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. 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.

These financial statements have been drawn up on the going concern basis. If the going concern basis were not appropriate, adjustments would have been made to reduce assets to recoverable amounts, to provide for any further liabilities that might arise, and to re-classify fixed assets as current assets and long term liabilities as current liabilities.true

Income and expenses are included in the financial statements as they become receivable or due.

Expenses include VAT where applicable as the company cannot reclaim it.

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:

Depreciation is charged in the year of acquisition but no depreciation is charged in the year of disposal.

The company 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 company's balance sheet when the company 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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 business 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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

The average monthly number of persons employed by the company during the year was 7 (2019 - 7).

Senior members of the team who have the authority and responsibility for planning, directing and controlling the activities on a day to day basis are considered to be key management personnel. Total remuneration in respect of these individuals is £36,810 (2019: £45,854).

Obligations under hire purchase and finance leases are secured over the assets to which they relate.

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

At the reporting end date the company had outstanding commitments for future minimum lease payments under operating leases, as follows: