LAUNCH_IT_TRUST_DUNDEE - Accounts

The Launch It 2023 conference was held on the 23rd and 24th March in London, and staff and trustees from Dundee attended what was a very stimulating and productive conference.

We have put in a great deal of effort to make our Dundee Centre a cheerful, inspiring, and welcoming space, with plenty of opportunities for young people to meet and share ideas. Our clients have found opportunities to support and promote each other, as well as collaborate on projects. Our charity and Enterprise Centre are now well-known across the local sector, and we are receiving regular referrals from other providers. We have introduced a social Value clause within our rental agreement for each tenant to give back to the community 1 hour a month. Through this we have started local high school visits to introduce entrepreneurship to the young people their as an alternative source of income. The enterprise Manager has also trained in Mental health first aid as we recognised that pastoral support is just as important as business support for the young people we work with.

Thanks to the hard work of our Dundee Enterprise Managers and the wider Launch It team, we are coming to the end of 2023 with our reserves in a relatively strong position. We would like to thank Launch It’ Out of London Development Director, Amber Wright, Shabana Basheer and Lianne Carr Wylie for their hard work fundraising for the charity.

The guidance and support Launch It Dundee has received from Launch It national staff team been invaluable and we are truly indebted to them for this. The commitment and work ethic of our two Enterprise Managers Shabana Basheer and Lianne Carr-Wyllie are the main reasons that Launch It Dundee has had such a successful first four years, and we are indebted to them for all their hard work. During the year Shabana Basheer resigned and the Board thank her for her commitment over the last 4 years and wish her well for the future. We are indeed fortunate that we have Lianne Carr Wylie to continue her excellent work as our sole Enterprise Manager.

During the year we welcomed Jillian Crabb as a new Trustee, and she has brought her experience as a social entrepreneur to our Board.

Finally, I would wish to personally thank our Trustees for the commitment, knowledge, and experience which they have offered unstintingly to the charity.

Chairman's Statement

The guidance and support Launch It Dundee has received from Launch It national staff team has been invaluable and we are truly indebted to them for this. The commitment and work ethic of out two Enterprise Managers Shabana Basheer and Lianne Carr-Wyllie are the main reasons that Launch It Dundee has had such a successful first three years, and we are indebted to them for all their hard work. Finally, I would wish to personally thank our Trustees for the commitment, knowledge, and experience which they have offered unstintingly to the charity.

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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 2019).

Overview

Launch It Trust Dundee is dedicated to helping young entrepreneurs start and grow successful businesses. We do this by providing affordable business space for two years, as well as advice, support and mentoring.

Over the course of their time with us, they graduate to paying a comparable market rent, later moving on and vacating their unit for another start-up. Launch It Trust Dundee opened its first centre at Kandahar House, Dundee in May 2019.

Our beneficiaries have a business idea, but don’t have the financial means to rent commercial premises, or the social and business networks to help them get started or generate the levels of sales needed to make the business sustainable.

We believe self-employment supports social mobility and that for young people it is one route out of unemployment, and as a result, improves their situation and enables them to achieve financial independence. We want to make self-employment accessible to young people with a good idea and the enthusiasm and commitment to turn it into reality – regardless of whether they have the money, family background or social networks to help them.

Our Mission

Our mission is to change lives through enterprise.

We work to empower enterprising young people, who face challenges in accessing the conventional labour market, to build bright futures by providing the space, tools and support they need to start and grow a sustainable business, develop their skills and attain financial independence doing something that they are passionate about.

Who We Help

Our beneficiaries are aged 18-30 and usually unemployed or underemployed. Many come from areas facing multiple deprivation within Dundee and the surrounding areas.

How We Work

Through our enterprise centre, we offer low-cost premises from which young entrepreneurs can develop their businesses, alongside on-site advice, support and mentoring. We build relationships in the communities from which we draw our clients, so that we understand and respond to local needs.

Our low-rent, high-support model is unique in the local community. Each of our centres has a community culture that is cultivated by our committed centre managers, who encourage businesses to network and trade with each other, and to take up the opportunities that we offer them.

We help entrepreneurs:

• Develop their business idea, create a viable business plan and help them access and apply for start-up funding.

• By providing a subsidised (sub-market rent) space on a sliding scale, reaching commercial levels over 2 years.

• By supporting them within our centre for 2 years, giving on-site support from the Enterprise Managers and a mentor

We also support clients who do not need access to our studio space through tailored business support, access to workshops and peer networking events.

Our fourth year has been one of consolidation at Launch It Dundee. Our Dundee Centre opened officially in May 2019, with over one hundred delegates from across the enterprise and employment sector, local government and other key players attending our launch. Since then, we have worked extremely hard to further raise the profile of Launch It locally and support more young people. Over 200 young people have approached Launch for support since our opening and our Enterprise team are currently supporting 40 businesses through one-to-one support and through our incubation programme.

We started the year with only a few vacancies, due mainly as a consequence of the cost-of-living crisis. However, by June 2023 we had full occupancy. During the year there were several tenants who left for a variety of reasons, but we were always able to relet the space within a short period of time and once again we were at full occupancy.

The previous year Lianne Carr Wylie, Enterprise Manager introduced a varied mentoring scheme for our clients as well as a user panel, and this has been operating very successfully. It is important that we provide our clients with not only pace for their new business, but a range of support, and Lianne has done this in a very thoughtful and targeted manner.

It is recognised that the charity must operate to the highest standard in terms of our governance. In 2022 we applied for and achieved the Introduction to Good Governance Award.

In 2022 we received an Adapt and Thrive grant and appointed Mo Khalil as our Virtual Enterprise Programme Development and in September 2022 he organised the Dundee Business Bootcamp (virtual programme) with 20 participants. The Rank Foundation provided a prize fund of £5,000 for the bootcamp competition.

Although we are in a reasonably comfortable financial position now, we are very conscious of the need to investigate ways of diversifying our funding so that we are not so reliant on grant funding in the future. The financial year 2022/23 saw an uplift in our rental income as many of our clients were in their third year, and at a higher level of rental income.

Our Dundee Centre is now fully occupied, and we can now rely on regular rental income alongside other funding sources to ensure the financial sustainability of our charity.

Our 2021-23 Strategy highlighted four clear goals for the next 3 years: to ensure Launch It Dundee’s financial stability; to increase our reach and effectiveness; to listen to and work with our young people to improve service delivery, and to develop a robust marketing strategy. We have identified clear objectives towards meeting these goals and look forward to working with the Launch It umbrella and our local partners to achieve them.

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

In formulating our reserves policy, we have taken account of the regular commitments of the Charity. Our aim is to achieve a position where we hold sufficient unrestricted reserves to fund our core costs for three months, including rent subsidy as this is an integral part of our activity. The charity does currently hold enough unrestricted reserves to cover three months of operating costs. This would create a buffer against any unexpected events affecting the Charity's financial position including a fall in funds raised from outside the Charity.

At 31 December 2023, our total reserves amounted to £71,045 (2022 - £87,830), of which £491 (2022 - £4,675) are restricted and can only be used to fund the projects that the monies were received for.

The organisation is a charitable company limited by guarantee, incorporated on 21 August 2017 as Youth Support Scotland and changed its name to Launch It Trust Dundee on 3 May 2019. It was registered as a charity on 31 May 2018.

The Company was established under a Memorandum of Association which establishes the objects and powers of the organisation and is governed under its articles of association. The trustees are responsible for the overall policies and direction of Launch It Dundee. The day to day management of the Charity is delegated to our Enterprise Managers.

The trustees meet four times a year to review strategy, planning, development, financial and administrative matters. In addition, the Chair meets the Enterprise Managers on a regular basis to discuss and deal with issues that emerge between the meetings of trustees.

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. It looks at the success of each key activity and the benefits these activities have brought to the people we are set up to help. The review also helps us to ensure that our aims, objectives and activities remain focused on our stated purposes.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

The Board has established procedures for recruiting and supporting trustees. New trustees attend an induction meeting to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the decision-making process, the business plan and recent financial performance of the Charity. They also meet key employees and members of the wider staff team.

The directors of the charitable company are its trustees for the purpose of charity law and throughout this report they are collectively known as the trustees. Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of guarantees at 31st December 2022 was five (2021: five).

Our governing document is the Launch It Memorandum and Articles of Association. This is reviewed by the Board at least every 2 years. As set out in the Articles of Association the trustees are also the members. The members have the power to appoint new trustees.

The Trustees' report was approved by the Board of Trustees.

I report on the financial statements of the Charity for the year ended 31 December 2023, which are set out on pages 6 to 20.

The Charity’s Trustees, who are also the directors of Launch It Trust Dundee for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Launch It Trust Dundee is a charitable company limited by guarantee, incorporated in Scotland within the UK (company number SC574279). The address of the registered office is Kandahar House, 71 Meadowside, Dundee, DD1 1EN.

The financial statements have been prepared in accordance with the Charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

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

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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 recognised in the statement of financial activities.

At each reporting end date, the Charity 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).

Cash and cash equivalents 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 Charity 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 Charity's balance sheet when the Charity 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.

Basic financial liabilities, including creditors and bank loans 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 operations 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.

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

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 Charity 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.

In the application of the Charity’s accounting policies, the Trustees 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.

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

Business Support

Business Support

Rent receivable

Services charges

Bank interest

Other income represents amounts received in lieu of salary reimbursements for seconded staff and the reimbursement of expenses from Launch It London.

Business Support

Business Support

Rent and service charges

Other staff costs

Office costs, including insurance

Repairs and maintenance

Sundries

Conference costs

Bad debts

License fees

Bank charges

Legal fees

Governance costs includes payments to the Charity's independent examiner of £3,141 (2022 - £2,559) for independent examination of the Charity's annual accounts.

During the period, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the period, no Trustees were reimbursed for any expenses (2022 - £NIL).

The average monthly number of employees during the year was:

Key Management Personnel

The total remuneration and benefit cost of key management personnel of the charity amounted to £31,679 (2022 - £42,682).

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension charge represents contributions payable by the charity to the fund and amounted to £151 (2022 - £210) at the balance sheet date and is included in creditors.

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

There were no disclosable related party transactions during the year (2022 - NIL).