Chichester Cathedral Enterprises Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01171418

Chichester Cathedral Enterprises Limited

Report of the Directors and

Audited Financial Statements for the Year Ended 31st March 2020

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

6

Balance Sheet

7

Notes to the Financial Statements

8

DIRECTORS:

The Very Reverend S Waine

D Coulthard

N Sutherland

Miss H Russell

J Harrington

J Allport

Mrs Y Thomson

REGISTERED OFFICE:

Cathedral Office

The Royal Chantry

Cathedral Cloisters

Chichester

West Sussex

PO19 1PX

REGISTERED NUMBER:

01171418

AUDITORS:

Sheen Stickland

Chartered Accountants

Statutory Auditors

7 East Pallant

Chichester

West Sussex

PO19 1TR

The directors present their report with the financial statements of the company for the year ended 31st March 2020.

DIRECTORS

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

The Very Reverend S Waine

D Coulthard

N Sutherland

Miss H Russell

J Harrington

Other changes in directors holding office are as follows:

C M Tod - resigned 9th May 2019

J Allport - appointed 21st November 2019

Mrs Y Thomson - appointed 21st November 2019

COVID-19

Following the implementation of lockdown measures by the Government in March 2020 in response to the Covid-19 pandemic all activities in which the company engages were stopped which had an immediate impact on the financial position of the company.

The Directors have taken advantage of the the Government support schemes as they apply to the company.

As a result of the impact of the pandemic the Directors have carried out a strategic review of the company's operations and as part of this decided to close the Cafe located within the cloisters of Chichester Cathedral.

It is intended that the other activities of the company will remain and fully reopen as lockdown measures are relaxed in due course.

The Directors have sought reassurance from Chapter of Chichester Cathedral that ongoing financial support will continue to be provided as necessary and this support has been confirmed by Chapter.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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 profit or loss 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Sheen Stickland, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

D Coulthard - Director

26th January 2021

Opinion

We have audited the financial statements of Chichester Cathedral Enterprises Limited (the 'company') for the year ended 31st March 2020 which comprise the Income Statement, 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 Financial Reporting Standard 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 31st March 2020 and of its loss 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 Auditors' 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 in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Directors.

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 from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

P E H Wright FCA DChA (Senior Statutory Auditor)

for and on behalf of Sheen Stickland

Chartered Accountants

Statutory Auditors

7 East Pallant

Chichester

West Sussex

PO19 1TR

26th January 2021

TURNOVER

1,048,129

1,073,758

Cost of sales

297,470

308,074

GROSS PROFIT

750,659

765,684

Administrative expenses

757,416

746,307

(6,757

)

19,377

Other operating income

6,731

-

OPERATING (LOSS)/PROFIT

3

(26

)

19,377

Loss on sale of operations

4

63,872

-

(63,898

)

19,377

Interest receivable and similar income

11

18

(LOSS)/PROFIT BEFORE TAXATION

(63,887

)

19,395

Tax on (loss)/profit

5

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(63,887

)

19,395

FIXED ASSETS

Tangible assets

6

34,653

65,905

CURRENT ASSETS

Stocks

7

24,269

38,454

Debtors

8

13,599

17,133

Cash at bank and in hand

61,984

97,190

99,852

152,777

CREDITORS

Amounts falling due within one year

9

176,465

196,755

NET CURRENT LIABILITIES

(76,613

)

(43,978

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(41,960

)

21,927

CAPITAL AND RESERVES

Called up share capital

10

2

2

Retained earnings

11

(41,962

)

21,925

SHAREHOLDERS' FUNDS

(41,960

)

21,927

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

The financial statements were approved by the Board of Directors and authorised for issue on 26th January 2021 and were signed on its behalf by:

The Very Reverend S Waine - Director

D Coulthard - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Bell Tower conversion

-

2% on cost

Furniture and Equipment

-

20% on cost and 10% on cost

Fittings in Premises

-

10% on cost

Computer equipment

-

25% on cost

Assets with an initial cost price which exceeds £500 are capitalised.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Contributions to pension schemes

The pension costs charged to the accounts represent the amount of the contributions paid to both the Defined Benefit and Pension Builders Schemes in respect of the accounting period.

Going concern

The company and its ability to undertake its activities has been severely affected by the Covid-19 pandemic. The impact has been felt predominately after 31 March 2020.

As a result of a strategic review of the company's operations the Directors decided to close the Cafe activities and this had led to an exceptional charge in these financial statements of £63,872.

The Directors have taken all possible measures to mitigate the impact of the pandemic on the company but the company has had to rely on the financial support of its controlling party Chapter of Chichester Cathedral. The Directors have sought and received confirmation that Chapter will continue to provide financial support for a period fo at least twelve months from the date of approval of these financial statements and on this basis they have been prepared as a going concern.

2.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

504,294

503,261

The average number of employees during the year was as follows:

2020

2019

Shop and refectory

22

23

3.	OPERATING (LOSS)/PROFIT

The operating loss (2019 - operating profit) is stated after charging:

2020

2019

£

£

Depreciation - owned assets

12,206

8,505

4.	EXCEPTIONAL ITEMS

2020

2019

£

£

Loss on sale of operations

(63,872

)

-

The exceptional item relates to the permanent closure of the cafe and the subsequent loss on stock and cafe assets and a provision for redundancy.

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31st March 2020 nor for the year ended 31st March 2019.

6.	TANGIBLE FIXED ASSETS

Bell

Furniture

Fittings

Tower

and

in

Computer

conversion

Equipment

Premises

equipment

Totals

£

£

£

£

£

COST

At 1st April 2019

7,386

112,786

15,975

20,557

156,704

Additions

-

7,678

6,484

-

14,162

Disposals

(7,386

)

(77,820

)

(22,459

)

(18,502

)

(126,167

)

At 31st March 2020

-

42,644

-

2,055

44,699

DEPRECIATION

At 1st April 2019

7,386

50,031

15,610

17,772

90,799

Charge for year

-

10,677

749

780

12,206

Eliminated on disposal

(7,386

)

(51,176

)

(16,359

)

(18,038

)

(92,959

)

At 31st March 2020

-

9,532

-

514

10,046

NET BOOK VALUE

At 31st March 2020

-

33,112

-

1,541

34,653

At 31st March 2019

-

62,755

365

2,785

65,905

7.

STOCKS

2020

2019

£

£

Stock - Cafe

-

14,172

Stock - shop

24,269

24,282

24,269

38,454

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

6,438

12,153

Prepayments and accrued income

7,161

4,980

13,599

17,133

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

12,740

48,272

Amounts owed to group undertakings

85,259

94,799

Social security and other taxes

5,456

5,459

VAT

18,278

23,989

Other creditors

16,059

1,431

Accruals and deferred income

38,673

22,805

176,465

196,755

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

2

Ordinary

1

2

2

11.

RESERVES

Retained

earnings

£

At 1st April 2019

21,925

Deficit for the year

(63,887

)

At 31st March 2020

(41,962

)

12.	RELATED PARTY DISCLOSURES

In respect of the Company's 100% parent, the Chapter of Chichester Cathedral, the company has taken advantage of the exemptions offered by FRS 102, S.33, as it is a wholly owned subsidiary.

13.	GOING CONCERN

Following the implementation of lockdown measures by the Government in response to the Covid-19 pandemic all activities of the company were closed in March 2020.

The accommodation and lettings activities were allowed to reopen in July 2020 and these traded successfully until subsequent lockdowns in both November 2020 and January 2021.

As a result of the impact of the pandemic the directors carried out a full strategic review of the company's operations in the spring and summer of 2020. The principal outcome of this review was the decision not to reopen the Cafe located within the cloisters of Chichester Cathedral and to move the Shop to a location in the main Cathedral building.

These decisions have resulted in exceptional costs of £63,872 which have been included in these financial statements.

The company has taken advantage of all available Government support schemes to aid cashflow during this period.

The directors have also sought and received confirmation of the ongoing financial support of Chapter of Chichester Cathedral. Chapter and the company have entered into a formal loan facility to provide funds of up to £400,000 in order that the company can continue and fully reopen when restrictions are eased. This facility and its terms are on a normal commercial basis.

The directors have determined that the actions taken are sufficient to mitigate any uncertainty surrounding the companys ability to trade in the future and therefore the financial statements have been prepared on a going concern basis.