DAIRY_UK_LIMITED - Accounts

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

Dairy UK is a trade association formed in October 2004 to give the dairy industry a strong and united voice and represent the interests of milk processors and producer co-operatives, dairy manufacturers and milkmen throughout the UK.

Dairy UK’s mission remains - To promote the consumption of UK dairy products domestically and internationally.

During the course of 2022, Dairy UK:

• Played a key role in furthering the industry’s commitment to continuous improvements in environmental sustainability through the Dairy Roadmap

• Furthered the nutrition agenda by communicating the benefits of dairy products in sustainable diets to consumers, health professionals and the industry

• Played a key role in advising members on technical and regulatory issues and supporting on technical issues related to supply chain integrity

• Promotion of dairy with consumers and key stakeholders

• Has proactively worked both independently and cross sector to defend and protect the reputation of the dairy industry in the face of arising threats and issues

• Acted as an interface with Government on behalf of its members in relation to:

• Environmental issues

• Nutrition and health

• Trade consultations and other policy issues e.g. energy, inflation, food security

• The activities of groups trying to interrup the dairy supply chain.

• Made submissions to relevant House of Parliament Select Committee inquires

• Responded to diverse consultations by Defra, DAERA and the Welsh and Scottish Governments.

It’s important to note that Dairy UK operates in all four corners of the UK so our activity with Government departments spans all four Governments of the UK.

Dairy UK also continued to consult with Government on behalf of its members with regard to the regulation of raw milk contracts between processors and farmers. This issue is ongoing and a draft Statutory Instrument with its accompanying Explanatory Note is expected to be issued by Defra in 2023. Regulatory guidance, which Dairy UK will have the opportunity to engage with on behalf of members, is expected thereafter.

In addition, Dairy UK also continued to work on environmental sustainability through:

• the environmental benchmarking survey,

• the work of Dairy Energy Savings Limited on climate change agreements,

• driving forward a reinvigorated Dairy Roadmap strategy with our partners at the AHDB and NFU including: working on harmonising carbon footprinting tools, providing advice to farmers and members, engaging with multiple industry stakeholders and consumers, begining to develop best practice guidance

• working to develop and implement a Commitment on Processor Environmental Standards,

• ongoing work with WRAP, EA and others,

• Funding, creating and launching the first ever Dairy Roadmap consumer campaign, promoting the sustainability activites and wins of the industry over the last 14 years.

Dairy UK also worked with health professionals, NGOs, our global dairy colleagues and intergovernmental organisations in relation to the ongoing work of UN member states post the United Nations Food Systems Summit. The first updates on progress with the national pathways for transforming food systems, increasing food security and building more resilient food systems is expected in October 2023 .

The nutrition team hosted a number of webinars on various aspects of diet, health and sustainability winning an industry award as Dairy Ambassor of the Year in recognition of the work of the team.

Dairy UK also continues to spearhead a pushback against misinformation about dairy and nutrition, through Search Engine Optimisation, reaching consumers with evidence based and accurate information on dairy products.

In addition, Dairy UK continued to provide input to members, Government agencies and media on the nutritional benefits of dairy and the role of dairy in a healthy balanced and sustainable diet.

Taste and enjoyment have also been a new part of our promotional strategy for 2022 and beyond, with Dairy UK setting up a new Pinterest account to continually promote dairy host foods all year round.

Considering the importance of all the technical elements which underpin a safe and sustainable food chain, Dairy UK also undertook significant work on food labelling, food safety and scientific and technical issues which affect the dairy sector. This includes the development of a guidance document on date marking, advising Government on allergens and allergen labelling, keeping members updated on issues of cost and supply of essential cleaning chemicals, and monitoring the risk of a variety of contaminants to the dairy supply chain.

Dairy UK also successfully operated an industry Due Diligence Scheme which helps ensure the safety and quality of UK milk and milk products and the Dairy Transport Assurance Scheme which ensures the safe transport of milk and milk fractions. Dairy UK also facilitated the development of the Assured Integrated Milk Supplier scheme which was launched in February 2023.

Dairy UK continues to operate a highly effective roll container repatriation scheme.

Dairy UK also provided the secretariat for the Action Johne’s initiative and obtained the agreement of the AHDB to takeover the support functions previously provided by RAFT Solutions in April 2023.

Dairy UK also represented processor concerns in Red Tractor, RUMA and the Cattle Antimicrobial Guardianship Group.

Dairy UK continued its work within a number of international organisations particularly, the International Dairy Federation, the Global Dairy Platform and the European Dairy Association.

Final Salary Pension Scheme

Dairy UK operates a final salary pension scheme formed on the merger of its two previous schemes from 1 January 2011. The scheme is closed to new entrants and to future accrual.

Going concern

After due consideration the Directors are of the opinion that the use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern. The financial situation has been assessed in detail by the Directors who are satisfied that overall, the financial position of Dairy UK going forward remains strong.

Dairy Energy Savings Ltd

Dairy Energy Savings Ltd (DESL) was established as a wholly owned subsidiary of the company in order to enable members to take advantage of a reduced rate of Climate Change Levy through participation within the Government‘s Climate Change Agreement (CCA) scheme.

This activity covers its own costs and makes a net contribution towards the costs of Dairy UK.

The current Climate Change Agreement scheme started on 1 April 2013 and is currently scheduled to run until 31 March 2025. A two-year extension was announced in the 2023 Spring budget, with the addition of a new 12-month target period in 2024 and reduced rates of CCL available until 31 March 2027.

DESL will remain the sector association during the entirety of this period with funding levels expected to remain broadly the same in real terms.

The Dairy Council

The Dairy Council ceased operations as a separate brand in 2018 and became a dormant company. All activity relating to nutrition and health is being carried out by Dairy UK.

Dairy Marketing Forum Ltd

The Dairy Marketing Forum Ltd has remained a dormant company during 2022.

Post balance sheet events

There are no post balance sheet events to note.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

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 Dairy UK Limited (the 'company') for the year ended 31 December 2022 which comprise the income and expenditure account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 31 December 2022 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation

• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Dairy UK Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 6th Floor, 210 High Holborn, London, WC1V 7EP.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The business income streams include the following:

Subscriptions

Subscriptions generally run for a period of one year. A membership subscription is payable either annually in advance or monthly by direct debit.

A full member of the company must give not less than one year's notice in writing of resignation from membership. Membership income is accounted for on an accruals basis.

The Roll Container Repatriation Scheme

The Roll Container Repatriation Scheme is a vehicle by which individual members of the scheme can ensure that trolleys are repatriated back to the correct members after being used to transport produce.

Subscriptions for the scheme generally run for a period of one year. A membership subscription is payable annually in advance.

Members are also charged a monthly fee based on the number of trolley returns in that month.

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:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in surplus or deficit.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

Other financial assets, which constitute listed investments, are classified through profit or loss and are measured at fair value.

Current asset investments are measured using the fair value model and are stated at their fair value at the reporting date. Changes in fair value are recognised in the profit and loss account.

Fair value is based on quoted prices in an active market.

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.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in surplus or deficit as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

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 leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants received in respect of the Coronavirus Job Retention Scheme (CJRS) is recognised as other operating income and is recognised as the related costs are incurred.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Deferred tax liabilities reflect the directors' best estimate of future taxes to be paid by the company. This involves estimating future tax rates and likely timings of future events.

Reliance has been placed on the figures provided by the Scheme Actuary in determining the pension scheme assets and liabilities.

The company has reviewed the existing lease on the building it occupies and determined a valuation of costs to return the property to its original condition as set out in the lease.

The average monthly number of persons (including directors) employed by the company during the year was:

Investment property comprises a residential property located in London. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2022 by James Boatman Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The title of the freehold investment property remains with The National Dairyman's Association Limited. The property has been recognised in these financial statements because the beneficial interest in the property has been transferred to Dairy UK Limited.

A charge is held over the freehold investment property in favour of the trustees of The Dairy UK Limited Pension Scheme for up to £1,700,000.

The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The Company operates a defined benefit pension scheme in the UK. There is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. The scheme is closed to future accrual of benefits. The contributions are determined with the advice of an independent actuary on the basis of regular valuations.

The most recent valuation upon which the amounts included in the financial statements are based, was carried out at 31 December 2019. Using this as a basis the actuarial valuation of the scheme has been updated to 31 December 2022 by an independent qualified actuary in accordance with section 28 of FRS 102.

As required by section 28 of FRS 102, the defined benefit liabilities have been measured using the projected unit method.

The company currently pays contributions at the rate of £75,000 (2021: £75,000) per annum.

The company's pension obligations in respect of the scheme are secured by a charge over the investment property up to £ 1,700,000.

Assumed life expectations on retirement at age 65:

The pensioner mortality assumption for the current year was 101.4% for males and 104.3% for females of S3PxA CMI 2021 (2021: S3PxA CMI 2020) projection with 1.5% long-term rate for males and females.

Amounts recognised in the profit and loss account

Amounts taken to other comprehensive income

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Movements in the present value of defined benefit obligations

The defined benefit obligations arise from plans which are wholly or partly funded.

Movements in the fair value of plan assets

The actual return on plan assets was £6,762,000 (2021 - £1,761,000).

Fair value of plan assets at the reporting period end

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 £10.

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