Royal British Legion Industries - Annual Accounts 2018/19 by RBLI

ANNUAL ACCOUNTS 2018/19

IMPROVING LIVES EVERY DAY

RBLI 100 YEARS

CONTENTS 3

CHAIRMAN AND CHIEF EXECUTIVEâ&#x20AC;&#x2122;S REVIEW

HOW WE HELP

WHERE THE MONEY GOES

OUR BOARD OF TRUSTEES

OUR SENIOR MANAGEMENT TEAM

TRUSTEES REPORT

STRATEGIC REPORT

INDEPENDENT AUDITORS REPORT

THE NUMBERS

LEGAL AND ADMINISTRATIVE INFORMATION

2018/2019 ANNUAL ACCOUNTS

CHAIRMAN AND CHIEF EXECUTIVE’S REVIEW 2019

marks the 100th anniversary of Royal British Legion Industries.

This charity began when a small group of

committed and insightful visionaries realised that our veterans needed more than nursing care.

As people who had pushed themselves to their mental and physical limits, and committed

themselves to a cause whatever its outcome for

them, our founders realised that forces veterans need purpose, meaningful activity, and new skills.

We are delighted to report that 100 years on RBLI remains at the forefront of holistic care,

and is still today able to combine excellent care with practical help, emotional support, activity,

skill development and outstanding employability opportunities.

Our priority remains veterans of all three

services and individuals with multiple needs and we know from our long experience and track record that given opportunities to work on

multiple issues at once many people can benefit hugely, and much more quickly working in this way. Too many vulnerable people are forced to wait months for adapted housing before

they can start job hunting, or advised to tackle

their mental health before even thinking about working again. Too many older veterans are

held back from any social life because they are not being supported to maintain their physical mobility. Like the founders of RBLI, this is not

our approach; we are able to provide different

accommodation options at different times, and can do much more to help our beneficiaries

remain active, and look forward, whatever their age or barriers to inclusion.

During this milestone Centenary year RBLI is looking forward to our next 100 years, and

the kind of charity we want and need to be to

help veterans of our armed forces, and people with disabilities, to thrive in 21st century society.

RBLI’s Centenary Village We are able to report that our Centenary Village Fundraising campaign gained real momentum during the year and our Trustees have given

RBLI the green light to commence construction works. The Centenary Village development will

bring a unique and powerful mix of facilities and services, adapted apartments, assisted living

and new family homes as well as a Community Centre with a fully accessible new gym. We

expect to see the first buildings completing as

early as 2020. Some of our campaign supporters and partners are mentioned in this report

and we are proud to be able to showcase our

multi-layered strategic partnerships during our Centenary.

A Replicable Model of Integrated Care During this year the charity also moved forward with the creation of our brand new Extra Care

suites which completes the full care pathway on

our unique Village. These new facilities will make it much easier for our beneficiaries to transition towards higher dependency care if need be, or towards assisted living when recovering

from serious illness. It means that we are able to support transitions more quickly and more

effectively – keeping in place many consistent

carers, peer support relationships, and activities even when health situations change.

2018/2019 ANNUAL ACCOUNTS

CHAIRMAN AND CHIEF EXECUTIVE’S REVIEW Continued The Erskine Village

Breaking the Cycle

RBLI’s model, which combines the full care

Within our Employment Solutions activity we

truly holistic welfare support, is able to help

through our outreach in deprived towns and

pathway with employability, mental health and people build their independence more quickly.

have been able to reach 16,000 beneficiaries coastal communities.

The model is also replicable and this year RBLI

This activity has had a huge impact on people

Charity Erskine, a mixed Village and social

families who are living with inter-generational

established, in partnership with renowned care enterprise in Glasgow.

As well as Scotland’s Bravest Manufacturing Co.

the Erskine Village is now home to a new activity centre, and mixed accommodation so that

veterans of all ages can take part in meaningful

activities, across a variety of supported settings. Scotland’s Bravest Manufacturing Co. is helping Scottish veterans with severe disabilities to

gain truly marketable work experience, within

a unique 18-month, personal development and

learning programme, and with clear “move on” goals.

The replication of our integrated model in

Scotland coincides with a very strong year in our Kent social enterprise Britain’s Bravest

Manufacturing Co. with its best commercial

performance ever. We can only provide work

and work placements for people with disabilities, learning difficulties, and ongoing health

problems if we can win commercial business, and during this year our sales were strong across all product areas.

who are very far from the labour market;

unemployment, and communities where 25%

are long-term unemployed. RBLI’s programmes

in these areas are breaking entrenched cycles of disadvantage, and furthermore, managing to do

this on a large scale to impact on communities as well as individual lives.

Similarly RBLI’s acclaimed LifeWorks programme which has now reached well over 1,000

unemployed veterans continues to build its

footprint. LifeWorks is also reaching the UK’s most deprived communities and is working

with partners to deliver in Wales, the North and Scotland, successfully helping those who are

struggling to manage ongoing health and mental health conditions return to the labour market. The programme is also very highly valued by the MoD who are pushing RBLI to use our

expertise to support large numbers of service personnel relocating from Germany, and

military spouses who are negatively impacted

by constant relocation; as a result the LifeWorks team is proud to be delivering the programme internationally.

2018/2019 ANNUAL ACCOUNTS

STRATEGIC GOALS Further develop thriving communities for those veterans who are most in need from across the UK with integrated services of social care, health care, employment support and accommodation. Be the catalyst for replication of effective integration across the UK.

Build a resilient work, health and training services business, â&#x20AC;&#x153;best in classâ&#x20AC;? at working with people with disabilities, health conditions and those furthest from the workplace.

Continue developing and delivering first class preemployment support for the Armed Forces community, centred on sustainable and relevant variants of LifeWorks programmes across the whole of the UK.

Build a 21st century social enterprise and employment academy.

Secure funding, sponsorship, awareness, and profile, to maximise the opportunities for our beneficiaries.

LOOKING BACK ON THE FINANCIAL YEAR 2018/2019 RBLI’s milestone Centenary year

On our Kent Village we have been

many partnerships that make our

partners to deliver our STEP IN

is a perfect time to celebrate the

holistic services and our impactful

work possible. It is true to say that we are only able to be the charity we want and need to be through collaboration. Britain’s Bravest

Manufacturing Co. would not have

had the excellent year it had without so many companies in the service

sector making the important decision to “buy social”.

We have also had key partnerships with There But Not There, and The Royal British Legion on

major commemorative projects manufacturing WWI Tommies

and the tri-service silent soldiers

delighted to work closely with many model of holistic care and would not have been able to support so many veterans to create positive daily

routines without West Kent CCG,

PTSD Resolutions, CGL Maidstone, Dementia Care Matters/Oomph,

and Leonard Cheshire. We have also

established exciting new partnerships with The Jubilee Sailing Trust and

Mid Kent Mind to help veterans with

their confidence, social relationships, fitness and active living. As a result

disadvantaged veterans were able to take part in the Round Britain Sailing Challenge, and a 150 mile cycle challenge to Ypres.

which have been used UK-wide to

With support from ABF The Soldiers’

of WWI. We have also been laying

begin a new partnership with Great

mark the anniversary of the end

the foundations, with our partner Morrisons, for a new product to appear in their stores.

The uplift in performance that we

Charity, last year we were able to Comp Garden, giving veterans

structured work placements and new skills in horticulture, landscaping and project management.

saw at the end of last financial

RBLI’s STEP IN programme, which

Manufacturing Co. and we have seen

health, mental health, housing,

year continued for Britain’s Bravest more customers and more volume. Our signs department increased performance by 12% and began

diversification into non-reflective

is able to combine support with

welfare, meaningful activities, social

participation, and employability won increased recognition last year.

signs such as hoardings. Our wood

performance was up 18% with new customers and increased fruit bin sales.

2018/2019 ANNUAL ACCOUNTS

LOOKING BACK ON THE FINANCIAL YEAR Continued

Several prestigious trusts and foundations

have been actively fundraising for a new

for older people and people with severe

collaboration with leading garden designer

who support the most pioneering services disabilities have recognised the power of our integrated model. These include The

dementia garden which they will deliver in Jo Thompson.

Garfield Weston Foundation, The Sir Jules

RBLI also has major strategic partnerships

Foundation. Additionally NHS Leaders

Soldiers’ Charity and Annington Homes

Thorn Charitable Trust and The Wolfson

and Commissioners, as well as senior NHS nurses who are also working to integrate active living with nursing care have

visited to see how they can replicate our

with Greenwich Hospital, ABF The

who are working closely with us to deliver national employability support as well as the Centenary Village expansion.

independence outcomes.

RBLI has also received an incredible

In December we were visited by the

Scotland’s Bravest Manufacturing Co.

Secretary of State for Health and Social

Care Matt Hancock MP who specifically

praised the way RBLI is able to integrate

welcome for our start-up enterprise

which we launched in collaboration with the renowned care charity Erskine.

mental health support and employability.

The new factory opened in May 2018

General Sir Gordon Messenger KCB DSO*

and disabled veterans, who are gaining

With support from our Campaign Patron,

OBE, RBLI’s Centenary Village fundraising campaign has been able to gain real momentum.

Barratt Developments are a major

supporter of the Centenary Village, and not just financially. This is a truly multilayered partnership with social value purchasing, employee engagement, veteran employment pathways, and

exciting projects in the graduate scheme.

and is already employing disadvantaged marketable skills and using state of the art manufacturing machinery.

The structured 18-month learning

programme has been developed in

collaboration with sector partners and our advisory board with a clear focus

on, and pathways to, future commercial

employment.

The Barratt Developments graduates

Caption to go here...........

2018/2019 ANNUAL ACCOUNTS

James Hopkins, CE at Annington, with RBLI’s Campaign Patron General Sir Gordon Messenger KCG DSO* OBE and veterans celebrating Annington’s donation to RBLI’s Centenary Village campaign.

2018/2019 ANNUAL ACCOUNTS

Veteran Alex Stringer made RBLI his home.

LOOKING AHEAD The next 100 years All of this activity, collaboration, and

With our new Centenary Village

partners means that RBLI is now laying

to support hundreds more veterans towards

incredible support from RBLI’s donors and exactly the right foundations to be here for

vulnerable people for another century. RBLI is proud to be a practical delivery charity

and we are very aware of the needs we can,

development, and STEP IN, we will be able independent living and employment,

whatever their individual challenges and barriers to inclusion.

and must, address.

We also know we need to be here for

The needs amongst the UK’s older

the national pressure on social housing. This

population are growing as so many people are living with multiple and complex

health conditions. This is also a growing

population. RBLI is putting the best facilities in place for older people, and is delivering

the complete care pathway in one location, and working harder than ever, through our pioneering STEP IN programme to enable more active lives for the longest possible time.

families, who are impacted so painfully by is why our priority remains our Centenary Village expansion and the remaining

£7m we need to raise to complete the

project. Organising the “breaking ground” ceremony within our Centenary year has been the key goal for our charity as we

want to commit publicly to be here for the nation’s most disadvantaged veterans for decades to come.

The veterans of the most recent conflicts, especially those who are coping with

life-changing injuries, PTSD and severe

disabilities, will be of working age for many decades to come. We will be there for them.

Stephen Kingsman DL CHAIRMAN

Steve Sherry CMG OBE CHIEF EXECUTIVE

12th July 2019

2018/2019 ANNUAL ACCOUNTS

HOW WE HELP With an aim of improving lives every day, RBLI works across the UK to help members of the Armed Forces community, people with disabilities and people who are unemployed. Whether it is providing a homeless veteran with emergency accommodation, helping someone into work after 20 years of unemployment or ensuring someone has the support they need to stay in a role when their health condition deteriorates, our teams are making a difference. All this support is provided by our core divisions, assisted by our corporate services and strategic development teams.

2018/2019 ANNUAL ACCOUNTS

RBLI LIVING

Focuses on providing homes to Armed Forces veterans and their families. In addition to emergency accommodation, we also provide family housing, specially adapted homes for wounded veterans, an assisted living scheme and a high-dependency nursing home. Residents are supported by our welfare team. Via our holistic health and social care model, they can access help to improve their independence, with benefits support, advice on managing health conditions and more.

BRITAIN’S BRAVEST MANUFACTURING COMPANY

(BBMC) is RBLI’s social enterprise providing vital employment to Armed Forces veterans and people with disabilities. The employment we provide gives them the necessary skills and support they need to regain their independence. Their skills and work ethic mean we can manufacture high quality products and deliver exceptional services, including signs, wooden products and print, mail and fulfilment.

RBLI EMPLOYMENT SOLUTIONS

Supports people with disabilities across Great Britain, ensuring they are not disadvantaged when doing their job. It also provides employment support for veterans who are struggling on civvy street. In Kent and Sussex, the teams work to support local people gain the skills they need for work, as well as helping them find sustainable, relevant employment or volunteering opportunities.

SCOTLAND’S BRAVEST MANUFACTURING COMPANY

(SBMC) is our new social enterprise currently being developed near Glasgow in Scotland. A project supported by fellow military charity, Erskine, it will work in a similar way to BBMC but all manufacturing staff will be Armed Forces veterans. The teams will provide a variety of services and manufacture a number of different products, enabling them to gain new skills in a civilian working environment. 2018/2019 ANNUAL ACCOUNTS 13

WHERE THE MONEY GOES In 2018/19, we made major investements into several capital projects, to improve facilites lives and opportunities for veterans and their families.

ÂŁ8.7m on our manufacturing social enterprises

ÂŁ5.1m

welfare to work programmes across the UK

£5.7m prioritising care and welfare at Ayleseford

£2m

on our New Care facility with 15 new suites and Day Care facilities

£502k

on new machinery for BBMC & SBMC, fixtures and fittings and refurbishments across the RBLI Village

£320k on ecological surveys, architect fees, and land preparation for the new Centenary Village expansion

2018/2019 ANNUAL ACCOUNTS

OUR BOARD OF TRUSTEES STEPHEN KINGSMAN DL CHAIRMAN

FRANK MARTIN DL VICE CHAIRMAN

BRIGADIER TONY KERR OBE

NADRA AHMED OBE DL

Stephen is a former Chairman

Frank is a Deputy Lieutenant

Tony rose to the ranks of

Nadra is a Deputy Lieutenant

Group, which specialises in

Chief Executive of Hornby Plc.

Now retired, he has spent

of the National Care

RBLI. He is also currently

gained an OBE for her work

of the Denne Construction

delivering affordable housing, regeneration schemes and

care facilities, much like those offered by RBLI.

His extensive history in

charitable service has seen

him in the role of Chairman of

for Kent and was formerly He is currently Deputy

Chairman of the Dover

Harbour Board and Chairman of Governors/Pro Chancellor of Canterbury Christ Church University.

Brigadier in the British Army.

for Kent and is Chairman

many years as a trustee of

Association. In 2006, she

President of The Royal British

in social care over 30 years.

Legion Village Branch at Aylesford.

She is also Vice President of Hi Kent and Vice President of the Kent Care Homes Association.

Canterbury Further Education College, Chairman of Kent

Training and Enterprise Council and as an RBLI trustee for four

years preceding his election to Chair.

2018/2019 ANNUAL ACCOUNTS

BLAIR GULLAND

KATHRYN CEARNS DAVID OBE FCA FCCA MONTGOMERY

DESMOND CRAMPTON DL

Blair is Chairman and Partner

Kathryn is a chartered

David rose to the ranks of

Desmond is a Deputy

been a practicing solicitor for

director, mainly in the public

before becoming COO of

President of Demelza Hospice

firm, Hanover Matrix. He

served as a trustee for more

Search Group in 2002,

He also founded Lorenden

at Gulland Solicitors and has

accountant and non-executive

over 40 years.

sector or for public interest

He is also a Trustee of many other charities including Benenden

Almhouse Charities, the Michael Yoakley Charity

and the Kent Community Foundation.

entities. Among other

appointments, she is on the

board of Companies House, the UK Supreme Court and Highways England.

She is also on the External

Brigadier in the British Army

Lieutenant for Kent and a Vice

international Executive Search

Care for Children, where he

then founded the Benchmark

than a decade.

which helps senior Service personnel transition into

successful civilian careers.

Preparatory School and

helped establish the Isle of Sheppey Academy.

Audit Committee of the IMF.

CHANGES TO THE BOARD OF TRUSTEES DURING 2018/19 In September 2018, RBLI welcomed Mr A Watson and Mr S Mason to the Board of Trustees. Kate Bosley stepped down in September 2018 and we would like to thank her for her service.

2018/2019 ANNUAL ACCOUNTS

SENIOR MANAGEMENT TEAM STEVE SHERRY CMG OBE

ANDY MILTON

CHIEF EXECUTIVE

DIRECTOR OF EMPLOYMENT SOLUTIONS

Brigadier Steve Sherry has

since April 2010. With a MBA

been Chief Executive of RBLI

DIRECTOR OF CARE AND WELFARE

SERVICES

Andy Milton joined RBLI

Will Campbell-Wroe has

Phil Defraine is a CIMA

Solutions in May 2018,

housing and charity sectors

originally worked as a trainee

as Director of Employment

and MSc in Strategic Studies as bringing with him 35 years well as a wealth of experience

of experience in the delivery

many differing environments,

programmes. During his

in implementing change in including Pakistan and the Czech Republic, Steve is

enjoying leading RBLI at a

time of significant growth,

innovation and modernisation.

WILL PHIL DEFRAINE CAMPBELL-WROE DIRECTOR OF CORPORATE

of employment and skills extensive career, Andy

became a National Leader of

Governance, working with the boards and executive teams

of more than 20 independent training providers. He also spent 4 years in Saudi

Arabia, developing new

national employment support programmes for people

with disabilities and health

20 yearsâ&#x20AC;&#x2122; experience in the specialising in designing,

securing funding for, and delivering services that support people to be

independent and actively

contributing to their local

community. Will, who holds Mastersâ&#x20AC;&#x2122; Degrees in both

Social Research and Housing

and Social Policy, has a strong track record in developing

innovative services that are

designed and delivered to an

qualified accountant. Having accountant at the Burton

Group, Phil spent 20 years in a

number of senior management roles including UBS, Warburgs,

Deutsche Bank and LloydsTSB. Phil joined RBLI as Head of

Business Services within the

Employment Solutions Division in 2005. Phil was appointed Director of Finance and

Company Secretary in July 2010.

extremely high standard.

conditions.

2018/2019 ANNUAL ACCOUNTS

CHANGES TO THE SENIOR MANAGEMENT TEAM IN 2019 In June 2019 , RBLI welcomed Kate Bull as the new director for BBMC after Geoff

Streetley retired. We would like to wish Geoff all the best and thank him for his service.

LISA FARMER

DIRECTOR OF STRATEGIC DEVELOPMENT

GEOFF STREETLEY MICHELLE DIRECTOR OF BRITAIN’S FERGUSON BRAVEST MANUFACTURING COMPANY

DIRECTOR OF SCOTLAND’S BRAVEST MANUFACTURING COMPANY

Lisa Farmer joined RBLI in

Geoff Streetley joined RBLI

Michelle has held senior

Strategic Development with

of Commercial and is now

the media industry, television

October 2015 as Director of over 20 years of experience in fundraising, marketing

and business development. Lisa spent 8 years at Young Epilepsy as Fundraising

Director before becoming

Director of Development and has been involved in major commercial developments including Loughborough

University’s £40m fundraising campaign and two capital fundraising campaigns at Young Epilepsy.

in November 2012 as Head responsible for RBLI’s social enterprise, Britain’s Bravest Manufacturing Company. Geoff was previously the

Chief Commercial Officer for

a UK listed plc in the business services industry. Prior to

this role, Geoff held senior

commercial roles based both in the UK and internationally

and has significant experience

management positions within press and magazines and

was a director for Scottish

Sports Futures Charity. Before joining RBLI in 2018, she

was Managing Director of

successful social enterprise

St Andrew’s First Aid Training and Supplies Ltd., leading the team as they gained

Highly Commended at the

UK National Business Awards.

of dealing with both public and Michelle was also a Guest private sector organisations globally.

Lecturer at the University of Glasgow Business School in 2017.

2018/2019 ANNUAL ACCOUNTS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2019 The Trustees are pleased to present their annual directorsâ&#x20AC;&#x2122; report together with the financial statements of the Charity for the year ended 31 March 2019 which are also prepared to meet the requirements for a directorsâ&#x20AC;&#x2122; report and financial statements for Companies Act purposes. The Charity registration number in England and Wales is 0210063. The Charity registration number in Scotland is SC048795. The Charity is also a limited company registration number 0158479. The Charity is a Public Benefit Entity. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

2018/2019 ANNUAL ACCOUNTS

OBJECTIVES & ACTIVITIES The primary objectives of the Charity are to support people with disabilities, health conditions or other social disadvantage to develop independence through the following activities:

1 2 3

The provision of welfare, healthcare and housing mainly for members of the ex-Service community.

The provision of employment and development opportunities through social enterprise and LifeWorks employment support outreach programmes.

Supporting unemployed, disabled, disadvantaged and other unemployed people to increase their independence, and participation, through meaningful employment.

THE CHARITY ACHIEVES ITS PURPOSE AND OBJECTIVES VIA THE FOLLOWING ACTIVITIES AND SERVICES: Delivering an integrated and comprehensive suite of care, accommodation and employment services and facilities on the RBL Village, Aylesford with a clear focus on supporting veterans and their families. Delivering supported employment for individuals with disabilities and health conditions from the Armed Forces and wider community through our manufacturing social enterprise, Britainâ&#x20AC;&#x2122;s Bravest Manufacturing Company. Delivery of a range of Government funded Employment Support programmes across Kent, Sussex and Surrey. The provision of disability assessment services via our Access to Work Programme is delivered for the Department of Work and Pensions. Creating innovative new projects, products and outreach services to meet our objectives, and meet the needs of our beneficiaries more effectively and efficiently. The design, development and ongoing delivery of RBLIâ&#x20AC;&#x2122;s innovative vocational assessment and development activities for the serving and veteran service community. This is delivered via our LifeWorks courses for veterans, spouses of serving personnel, and veterans in custody. In addition, RBLI delivers vocational assessments to wounded, injured and sick serving personnel as part of the Right Management Career Transition Partnership with the MOD.

The Board of Trustees review the Charityâ&#x20AC;&#x2122;s strategic goals, activities and performance throughout the year and have considered the Charity Commissionâ&#x20AC;&#x2122;s guidance on public benefit and are confident that the broad range of services and support that the charity provides demonstrable public benefit to a very large number of beneficiaries. This report highlights some of the core work and achievements of the charity during the year.

ACHIEVEMENTS & PERFORMANCE For the year ended 31 March 2019 During the year the Charity provided accommodation and care to more than 300 Veterans and their families on our village at Aylesford. In addition to accommodation provided the charity provides a full range of welfare, health and wellbeing services on the village, We are experiencing more and more demand for accommodation and care from the veteran community. Having opened our awardwinning new apartments in 2017, we are now well advanced in delivering our exciting Centenary Village Development with our new Care Facility due to be completed in summer 2019 and building work scheduled to commence on a broad range of new accommodation facilities and a Community Centre in Autumn 2019. Our training and vocational assessment services to the veteran and serving armed forces continue to excel. LifeWorks, our flagship programme, was recognised 26

in an independent study by the Learning and Work Institute to be highly effective at helping more than 80% of all participants move onto work or further education.. During the year the programme was delivered nationally across the country and internationally at armed forces garrisons. In addition to LifeWorks we continue to deliver our Vocation Assessment Course for the MOD at garrison facilities across the UK. The Charity continues to operate a range of Welfare to Work Programmes via our Employment Solutions Division. We deliver Work Programme across a large part of Kent and Sussex along with a number of Big Lottery and European Social Fund funded projects designed to help the longterm unemployed. The Access to Work Assessment Contract continues to perform very well, providing workplace assessments to nearly

10,000 disabled employees throughout the UK. Our Kent and Surrey based manufacturing division Britain's Bravest Manufacturing Company continues to provide employment opportunities for a range of veterans, disabled and able bodied staff. In 2018 RBLI are proud to have launched a new manufacturing operation, Scotland's Bravest Manufacturing Co. This initiative is a collaboration with the Erskine Charity in Scotland and will provide employment for up to 100 veterans at the Erskine facility 14 miles west of Glasgow. The Scottish Charity Commission confirmed registration of this new initiative mid 2018 and the team are already having some fantastic success in winning contracts and providing work to a number of veterans. 2018/2019 ANNUAL ACCOUNTS

2018/2019 ANNUAL ACCOUNTS

FINANCIAL REVIEW For the year ended 31 March 2019 During the year the Charity generated

by the increased demands to deliver

Investment Powers and Policy

Donations at £4.5m reflect a highly

effect of the National Living Wage,

by the Memorandum and Articles of

income of £22.3m (2018 £17.7m).

successful year for our fundraising

activity, with great progress in securing funding for the Centenary Village

Project. Employment Solutions improved

high quality care and the cost inflation being offset by reduced operating costs for divisional management during the year.

Investment powers are governed

Association and permit the Charity’s fund to be invested in a wide range of assets. No ethical investment

restrictions are placed on the investment

by £753k, year on year reflecting growth

Overall our operating divisions

to Work and Skills sector. RBLI Living

including donations.

The Charity’s investments are held to

Our investment fund increased in value

and a level of investment income each

into new contract areas in the Welfare our care and accommodation division generated £5.2m income, marginally down on the prior year.

Manufacturing at £7.8m was £2.3m higher than 2018, with the division

fulfilling significant volumes of business for the Remembered Charity’s There But Not There (TBNT) initiative and

the Royal British Legion’s Silent Soldier marking the centenary of the end of World War 1.

Total expenditure for the year was

£20.4m (2018 £18.3m). Employment

Solutions costs increased by £0.4m as the division expanded into skills and training. Manufacturing costs were £2.2m higher year on year, largely

reflecting the increased costs for the

TBNT initiative. Living costs decreased

by £0.5m with higher costs being driven

produced a net income of £1.9m

by £231k in year and therefore the net income for the year was £2.2m (2018: Net expenditure for the year £826k).

In addition to the above, the 2019

financial statements include a £222k

actuarial loss on the defined pension

benefit scheme and therefore the net

fund managers’ remit.

achieve balanced long term growth

year. Performance is measured against a long term target of CPI+3% per annum. Performance is also measured against

a bespoke benchmark that reflects the fund asset allocation. During the year the fund performed marginally below target and benchmark.

movement in funds for the year equates

The Board reviews fund performance

Charity ends the year with funds of

meet with our investment managers

to £1.9m increase and therefore the

£24.8m an increase of just under 8.5%

year on year overall, with the Charity’s

Balance Sheet continuing to strengthen materially. Within this figure restricted funds have increased and unrestricted

at every board meeting. Management quarterly and the investment managers present and report to the board on an

annual basis.

funds have reduced reflecting the

funds secured for new development programmes.

2018/2019 ANNUAL ACCOUNTS

RESERVES AND RESERVES POLICY

The pension deficit reserve calculated

materially different in value as at March

The reserve policy, reviewed annually

£1.5m)

other land has not been done, however

as a designated fund in 2 parts as

The general fund of £7.1m reflects

An operating reserve equating to

assets used by the charity to support

Reserve Policy

by Trustees, is to hold a sum of money

as per FRS102 is £1.9m ( 2018 :

follows:

the infrastructure and tangible fixed

approximately 4 months working cash

our beneficiaries in Aylesford and

flow which equates to £5m

Leatherhead.

A reserve equating to the forecast cost

Restricted Funds totalled £9m (2018:

developments, primarily accommodation

currently equates to £5m

unrestricted fund also includes a sum

Reserves

reserve which equates to the difference

to RBLI for planned future projects and

£5.7m)

and care facilities at Aylesford. This

In addition to the above, the

Unrestricted funds totalled £15.8m (2018: £17.1m)

The operating reserve in a designated fund equates to £5m

The development reserve in a

designated fund stands at £5m which includes £2m for the refurbishment of our existing care home Gavin

Astor House and £3m for continuing

developments elsewhere on the village

including the Centenary Village Project.

covering the investment fair value

2019. A professional valuation of all

the Trustees believe that the market value is significantly higher than the

book value which is negligible as it was transferred to the Charity in 1919. Going Concern The Trustees have reviewed the future

plans for the Charity and this combined with the strength of the balance sheet and future funds already secured are

confident that the Charity will remain a going concern for many years to come.

between the original cost of the

investments and their market value. Land and buildings shown on the

balance sheet are shown at historical costs less depreciation and have not

been restated at market value. The one exception to this is the Vanguard Trust

properties that were transferred to RBLI in the year and are shown at Market

Valuation as at 2018. The valuation was completed in September 2017 and we

do not believe that the value would be

2018/2019 ANNUAL ACCOUNTS

FINANCIAL REVIEW Continued Pension Liability

Fundraising

PLANS FOR THE FUTURE

employer pension scheme with The

division (Supporting Britain’s Bravest).

Strategic Report

Factory.

focus on corporate, community, legacy

The scheme is a defined benefit scheme.

has a target that generates a level of

in 2002, but members are still accruing

A major focus of the division is the

deficit, largely due to historic funding

for the future development of the village

The Charity is a member of a multi-

The Charity operates a fundraising

Royal British Legion and The Poppy

The division has specific teams that

and grant based fundraising. Each team

This scheme was closed to new entrants

both restricted and unrestricted funds.

benefits. The scheme has a pension

centenary village campaign raising funds

not achieving predicted returns required

at Aylesford.

the liability. RBLI’s share of the deficit is

We confirm that all solicitations are

deficit as determined by our actuaries

of commercial participators. The day

Report

generation is delegated to the executive

We have an agreed recovery plan with

trustees.

the deficit over a 10 year period. The

The charity is not bound by any

over the Charity’s assets rather than

regulatory scheme. During the year we

recovery plan allows for a revision to the

any fundraising activity.

of the scheme assets versus liabilities

Most of the fundraising we undertake

to ensure the scheme assets fully cover

£1.9m or approximately 16% of the total

managed internally, without involvement

as part of the FRS102 Pension Liability

to day management of all income

the Pension Scheme Trustees to fund

team, who are accountable to the

plan allows for a securitised charge

undertaking to be bound by any

a cash recovery plan. However, the

have received no complaints relating to

methodology subject to the future size

Plans for the future are covered in the

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Royal British Legion Industries is a

charitable company limited by guarantee and was set up on 3 September 1919 and known as Industrial Settlements (Incorporated). It is governed by

Articles of Association which were last amended in September 2016.

Reference and Administrative Information

The Trustees in office during the year and at the date of this report, Senior

Executives of the Charity, its principal

places of business and its professional advisers are set out on page 3.

with the general public are those

community or sports based events

where members of the public fundraise for us for a specific event that we may

advertise for such purposes. We comply fully with GDPR legislation.

2018/2019 ANNUAL ACCOUNTS

Board of Trustees

business plans and budgets. Summary

Estates Development matters are

for the overall governance, policy and

the Trustees at each Board meeting.

Estates Development Committee

Royal British Legion Industries (RBLI) can

The Trustees confirm that reference has

for the year from one Annual General

in the Charity Commission’s guidance

the Trustees can co-opt a Member to fill

2011, when reviewing the Charity’s aims

Newly elected Trustees are given

activities. The Trustees and Senior

Members of the Board and on their

planning and their recommendations are

The Board of Trustees are responsible work of the Charity. The Members of

management accounts are reviewed by

considered and reviewed by the

which is chaired by a Trustee and its

recommendations are submitted to the

appoint up to a maximum of 12 Trustees

been made to the guidance contained

Meeting to the next. If a vacancy arises,

on public benefit of the Charities Act

Care and Welfare matters are

a vacancy at any time.

and objectives and in planning future

and Welfare Committee which is chaired

induction training on their duties as

Executives are involved in the strategic

responsibilities as Trustees. In addition,

then considered by the Board.

Articles of Association, a copy of its

In addition to the quarterly board

details of the Senior Executives and

annually for a strategic review and

future board meetings.

operations of the charity and consider

The Board governs the Charity within

addition to this the Board also consider

with its mission, charitable objectives

this time the Board have not conducted

policy direction and the management

this is due to be concluded at the end

they receive a copy of the Charity’s

latest reports and financial statements,

meetings the Trustees also meet

their respective roles and details of

planning day. The Board review existing

Board of Trustees for its approval.

considered and reviewed by the Care

by a Trustee and its recommendations

are submitted to the Board of Trustees for its approval.

strategic options for the future. In

its Articles of Association and in line

their own effectiveness and practices. At

and values. The Board provides overall

a full charity governance code review,

of the Charity is delegated to the Chief

of 2019.

Executive and through him to the senior management team. The Board meets

quarterly and papers are made available prior to board meetings including

2018/2019 ANNUAL ACCOUNTS

FINANCIAL REVIEW Continued Statement of Trustees

In preparing these financial statements,

The Trustees are responsible for

that are sufficient to show and explain

Responsibilities

preparing the Strategic report,

the Trustees are required to: •

select suitable accounting policies

•

make judgements and accounting

the Report of the Trustees and the

financial statements in accordance with applicable law and regulations.

each financial year in accordance with

•

United Kingdom Generally Accepted

in the financial statements;

law).

unless they are satisfied that they give a true and fair view of the state of affairs

Accounting Standards have been departures disclosed and explained

Accounting Standards and applicable

not approve the financial statements

state whether applicable UK

followed, subject to any material

Accounting Practice (United Kingdom

Under company law the Trustees must

estimates that are reasonable and prudent;

Company law requires the Trustees to prepare financial statements for

and then apply them consistently;

•

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

keeping adequate accounting records the charity’s transactions and disclose with reasonable accuracy at any time

the financial position of the charity 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 charity

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

Financial statements are published on the charity’s website in accordance

with legislation in the United Kingdom governing the preparation and

dissemination of financial statements,

which may vary from legislation in other

of the charity and of the incoming

jurisdictions.

including the income and expenditure,

The maintenance and integrity of the

resources and application of resources, of the charity for that period.

charity’s website is the responsibility of

the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

2018/2019 ANNUAL ACCOUNTS

Pay Policy The Board of Trustees approve any

21 people received such bonuses. This

equates to 1.2% of total payroll cost for

relevant annual pay rise to all employees

the year.

receiving the same annual increase as all

All staff are encouraged to join the

with the Senior Management Team other employees.

current pension scheme which is a

When new members join the Senior

Charity contributes to the scheme and

Vice-Chairman of the Board of Trustees

individual employee contribution level.

and other compensation/rewards.

Risk Management

Out of cycle pay rises not covered by

matrix that is reviewed by the Board of

Management Team, the Chairman or

are asked to approve relevant salaries

the annual process, require the approval of the Chief Executive and the Director

of Finance and typically reflect a change of roles and responsibilities or a market change in a specific division or area of the Charity.

The Board are pleased to see RBLI being very well placed in terms of Gender Pay Gap reporting with the Charity

defined contribution scheme. The

Principal Risks and Uncertainties The major risks that could negatively

and materially impact the Charity in the medium and long term are as follows: •

Britain’s Bravest Manufacturing

Co. The grant provides help and

support for those employees with the most profound disabilities at

The Charity operates a risk reporting

matrix is updated in real time as events

or issues emerge and wherever possible alternative scenarios are evaluated and relevant action plans or strategies are developed to help plan through and

mitigate any possible material risk that may emerge.

Supported Factory Grant used to

support disabled employees in the

the contribution is determined by the

Trustees at every Board meeting. The

The Government removes the

both Aylesford and Leatherhead. •

The majority vote for the leave campaign for the UK to leave

the European Union may have an adverse effect on the Charity at

some time in the future. At this

stage it is impossible to quantify any likely effect in either the Charity’s

investments or those programmes

that we deliver that are ESF funded.

comparing very well against the sector and most business across the UK.

Where appropriate, staff with revenue targets, benefit from a bonus system

that rewards good performance. In year

2018/2019 ANNUAL ACCOUNTS

FINANCIAL REVIEW Continued Directors’ Indemnities

The Trustees are responsible for the

Association, the Directors/Trustees

corporate and financial information

is a qualifying third party indemnity

website.

the Companies Act 2006. The indemnity

Legislation in the United Kingdom

year and is currently in force. The

dissemination of financial statements

throughout the financial year Directors’

jurisdictions.

respect of itself and its Directors/

Independent Auditors

appointed as auditors of the Charity

to Auditors

General Meeting

As permitted by the Articles of

maintenance and integrity of the

have the benefit of an indemnity which

included on the charitable company’s

provision as defined by Section 234 of

was in force throughout the last financial

governing the preparation and

Charity also purchased and maintained

may differ from legislation in other

and Officers’ liabilities insurance in

Trustees. A resolution proposing that BDO be

Statement of Disclosure of Information

will be put to the Board at the Annual

Insofar as the Trustees are aware:

•

its order by

there is no relevant audit

information of which the charitable

Approved by the Board and signed by

company’s auditors are unaware; and •

the Trustees have taken all steps

that they ought to have taken to make themselves aware of any

relevant audit information and to

establish that the auditors are aware of that information

Stephen Kingsman DL CHAIRMAN

12th July 2019

2018/2019 ANNUAL ACCOUNTS

STRATEGIC REPORT

For the year ending 31 March 2019 Business Review

Future plans

Overall this year has seen a more than

The Centenary Village build programme

most programmes with continued growth

Year with the first ÂŁ7m committed to the

satisfactory financial performance across and good performance.

will start, as planned, in this our Centenary build.

The main financial challenges occurred

The first turf will be cut in autumn 2019

with the move to a newly expanded

assisted living home and 4 family houses

in transitioning Employment Solutions office footprint and also within our

high dependency care, where external

and we will see 12 apartments, a 24 bed completed in 2020.

factors, coupled with our own cultural

Prior to this we will open our new 15 bed

pressures.

convert our 50 bed care home into a 24-

change programme has produced cost

Overall the charity increased net funds by 8% notwithstanding a material increase

care facility, this summer. We plan to

bed dementia suite plus a 26 bed nursing suite in 2020.

in the charityâ&#x20AC;&#x2122;s FRS 102 pension deficit provision.

Sheerness Swale

Gravesham Gravesend

Dartford

Deprived areas

Maidstone

Tonbridge

Dover

Ashford

EAST SUSSEX

WEST SUSSEX

KENT

Shepway Folkestone

Redhill

Worthing

Canterbury

Aylesford

Taken from national index of areas of multiple deprivation

Arun Bognor Regis

Margate Thanet

Medway Chatham Sittingbourne

Brighton

Employment Solutions, new office footprint

2018/2019 ANNUAL ACCOUNTS

Our commitment to providing a foundation

Our strategic intent remains one of

the help of many other organisations and

growth, national reach, innovation,

for RBLI for the next 100 years is, with individuals, coming to fruition.

On top of the capital build programmes we continue to develop our innovative STEP-IN programme which supports

individuals to regain their independence within our unique, dynamic and multi-

generational community which integrates: healthcare, social care, housing, training and employment. Our many partner organisations play a pivotal role in optimising the support provided.

supporting more beneficiaries through investment, inspirational leadership

and influence. We strive for open and

collaborative working with other charities,

Government and commercial organisations. In the midst of our Centenary Year we

remain energised to further develop our services and facilities and deliver even

more for those who have served and have

sacrificed.

Stephen Kingsman DL CHAIRMAN

12th July 2019

2018/2019 ANNUAL ACCOUNTS

INDEPENDENT AUDITORS REPORT Report on the audit of the financial statements Opinion

•

have been properly prepared in

We believe that the audit evidence

Generally Accepted Accounting

appropriate to provide a basis for our

We have audited the financial

accordance with United Kingdom

Industries Limited (“the Charitable

Practice; and

statements of Royal British Legion

Company”) for the year ended 31 March 2019 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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: •

•

have been prepared in accordance with the requirements of the

Companies Act 2006, the Charities

we have obtained is sufficient and opinion.

Conclusions related to going concern

and Trustee Investment (Scotland)

We have nothing to report in respect

Charities Accounts (Scotland)

which the ISAs (UK) require us to report

2010.

•

Act 2005 and regulation 8 of the

of the following matters in relation to

Regulations 2006, as amended in

to you where:

Basis for opinion

(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

Charitable Company in accordance with

give a true and fair view of the state

the ethical requirements relevant to our

as at 31 March 2019 and of its

UK, including the FRC’s Ethical Standard,

of resources for the year then

responsibilities in accordance with these

of the Charitable Company’s affairs

audit of the financial statements in the

incoming resources and application

and we have fulfilled our other ethical

ended

requirements.

concern basis of accounting in

the preparation of the financial

We conducted our audit in accordance

with International Standards on Auditing

the Trustees’ use of the going

statements is not appropriate; or •

the Trustees have not disclosed

in the financial statements any

identified material uncertainties that may cast significant doubt about the Charitable 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.

2018/2019 ANNUAL ACCOUNTS

Other information

or a material misstatement of the other

Matters on which we are required to

information included in the Report of

have performed, we conclude that there

In the light of the knowledge and

statements and our auditor’s report

information, we are required to report

comprises: the Chairman and Chief

this regard.

and the Report of the Trustees. The

Opinions on other matters prescribed

information.

In our opinion, based on the work

Our opinion on the financial statements

audit:

The other information comprises the

information. If, based on the work we

the Trustees, other than the financial

is a material misstatement of this other

thereon. The other information

that fact. We have nothing to report in

Executive’s Review, the Strategic Report Trustees are responsible for the other

does not cover the other information and, except to the extent otherwise

by the Companies Act 2006

undertaken in the course of the •

explicitly stated in our report, we do

report prepared for the purposes of

conclusion thereon.

Company Law, for the financial year

•

the Strategic report and the Directors’ Report, which are

knowledge obtained in the audit or

Trustees, have been prepared in

misstated. If we identify such material

requirements.

with the financial statements or our

included in the Report of the

otherwise appears to be materially

accordance with applicable legal

determine whether there is a material

misstatement in the financial statements

in the course of the audit, we have not

identified material misstatement in the Strategic report or the Report of the Trustees.

We have nothing to report in respect

of the following matters in relation to which the Companies Act 2006 and

the Charities and Trustee Investment

(Scotland) Act 2005 requires us to report to you if, in our opinion; •

proper and adequate accounting records have not been kept, or

returns adequate for our audit have not been received from branches

financial statements; and

information is materially inconsistent

misstatements, we are required to

Company and its environment obtained

are prepared is consistent with the

financial statements, our responsibility

inconsistencies or apparent material

understanding of the Charitable

for which the financial statements

In connection with our audit of the

doing so, consider whether the other

of the Trustees, which includes the

Directors’ Report and the Strategic

not express any form of assurance

is to read the other information and, in

the information given in the Report

report by exception

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.

2018/2019 ANNUAL ACCOUNTS

INDEPENDENT AUDITORS REPORT Continued

Acts and relevant regulations made or

3 of Part 16 of the Companies Act

Statement of Trustees’ responsibilities,

Our objectives are to obtain reasonable

trustees, as a body, in accordance with

directors of the charitable company

statements as a whole are free from

responsible for the preparation of the

fraud or error, and to issue an auditor’s

Responsibilities of Trustees As explained more fully in the

having effect thereunder.

the Trustees (who are also the

assurance about whether the financial

for the purposes of company law) are

material misstatement, whether due to

financial statements and for being

report that includes our opinion.

view, and for such internal control as

Reasonable assurance is a high level

to enable the preparation of financial

that an audit conducted in accordance

misstatement, whether due to fraud or

material misstatement when it exists.

satisfied that they give a true and fair

2006, and to the Charitable Company’s the Charities and Trustee Investment (Scotland) Act 2005.

Our audit work has been undertaken so that we might state to the Charitable Company’s members and trustees

those matters we are required to state

the Trustees determines is necessary

of assurance, but is not a guarantee

statements that are free from material

with ISAs (UK) will always detect a

error.

Misstatements can arise from fraud

To the fullest extent permitted by

In preparing the financial statements,

if, individually or in the aggregate,

responsibility to anyone other than the

assessing the Charitable Company’s

to influence the economic decisions

disclosing, as applicable, matters

financial statements.

the going concern basis of accounting

A further description of our

liquidate the Charitable Company or to

financial statements is located at the

alternative but to do so.

website at: https://www.frc.org.uk/

or error and are considered material

the Trustees are responsible for

they could reasonably be expected

ability to continue as a going concern,

of users taken on the basis of these

related to going concern and using

unless the Trustees either intend to

responsibilities for the audit of the

cease operations, or have no realistic

Financial Reporting Council’s (“FRC’s”)

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor

under section 44(1)(c) of the Charities

and Trustee Investment (Scotland) Act 2005 and under the Companies Act

2006 and report in accordance with the

to them in an auditor’s report and for no other purpose.

law, we do not accept or assume

Charitable Company, the Charitable Company’s members as a body and the Charitable Company’s trustees

as a body, for our audit work, for this report, or for the opinions we have formed.

auditorsresponsibilities.

Jill Halford

This description forms part of our

For and on behalf of BDO LLP

auditor’s report.

Use of our report

This report is made solely to the

Charitable Company’s members, as

a body, in accordance with Chapter

SENIOR STATUTORY AUDITOR

BDO LLP is a limited liability

partnership registered in England

and Wales (with registered number OC305127).

2018/2019 ANNUAL ACCOUNTS

THE NUMBERS

STATMENT OF FINANCIAL ACTIVITIES INCORPORATING THE SUMMARY INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDING 31 MARCH 2019 2019 Unrestricted Funds

2019 Restricted Funds

2019 Total Funds

2018 Unrestricted Funds

2018 Restricted Funds

2018 Total Funds

£000’s

229

4,251

4,480

268

2,256

2,524

Employment Solutions

4,009

664

4,673

3,339

581

3,920

Britain’s Bravest Manufacturing

7,514

245

7,759

5,117

366

5,483

RBLI Living

4,854

353

5,207

4,669

868

5,537

Total Charitable Activities

16,377

1,262

17,639

13,125

1,815

14,940

224

209

16,830

5,513

22,343

13,602

4,071

17,673

684

167

851

764

149

913

Employment Solutions

4,531

606

5,137

4,064

637

4,701

Britain’s Bravest Manufacturing

8,238

518

8,756

6,148

376

6,524

RBLI Living

4,723

952

5,675

4,404

1,773

6,177

Total Expenditure

18,176

2,243

20,419

15,380

2,935

18,315

Net (Expenditure)/Income before Investment (Losses)/Gains

( 1,346 )

3,270

1,924

( 1,778 )

1,136

( 642 )

Gains (Losses) on investments assets

231

( 184 )

( 1,115 )

3,270

2,155

( 1,962 )

1,136

( 826 )

Note

£000 ‘s

INCOME FROM Donations Charitable Activities:

Investment Income

Total income EXPENDITURE ON: Raising Funds Charitable Activities:

Net (Expenditure)/Income OTHER RECOGNISED GAINS AND LOSSES Actuarial Gain/(Loss) on defined benefit pension scheme

Net movement in funds Fund balances brought forward at 1st April Fund balances carried forward at 31st March

( 222 )

2,510

( 1,337 )

3,270

1,933

548

1,136

1,684

17,129

5,715

22,844

16,581

4,579

21,160

15,792

8,985

24,777

17,129

5,715

22,844

All of the current year above results are derived from continuing activities The notes on pages 45 to 58 form part of these financial statements

2018/2019 ANNUAL ACCOUNTS

BALANCE SHEET FOR THE YEAR ENDING 31 MARCH 2019 2019

2018

Note

£000s

Tangible assets

16,778

13,827

Investments

7,068

6,834

Investment in subsidiary

23,846

20,661

FIXED ASSETS

Total Fixed Assets CURRENT ASSETS Stocks and work in progress

526

382

Debtors

2,369

2,371

Cash at bank and in hand

3,170

4,165

Total Current Assets

6,065

6,918

( 3,200 )

( 3,229 )

( 3,200 )

( 3,229 )

Net current assets

2,865

3,689

Total assets less current liabilities

26,711

24,350

Net assets (excluding pension scheme liability)

26,711

24,350

( 1,934 )

( 1,506 )

12,13

24,777

22,844

Unrestricted - Designated

10,000

Unrestricted - General

7,141

8,155

Fair Value Reserve

585

480

17,726

18,635

( 1,934 )

( 1,506 )

15,792

17,129

8,985

5,715

24,777

22,844

CURRENT LIABILITIES Creditors – amounts falling due within one year

Defined benefit pension scheme liability Net assets (including pension scheme liability)

THE FUNDS OF THE CHARITY

Pension Reserve

Total Unrestricted Income Funds Restricted Income Funds TOTAL CHARITY FUNDS

12,13

The notes on pages 45 to 58 form an integral part of these financial statements. The Financial Statements which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes were approved by the Board of Trustees on 12th July 2019 and were signed on its behalf by:-

Mr Stephen Kingsman Mr A B Gulland 2018/2019 ANNUAL ACCOUNTS

STATEMENT OF CASH FLOWS

For the year ended 31 March 2019

CASH FLOW

Note

2019 £000s

2018 £000s

2,461

( 442 )

Dividends, interest and rents from investments

224

209

Purchase of property, plant and equipment

( 3,680 )

( 1,398 )

( 3,456 )

( 1,189 )

Change in cash and cash equivalents in the reporting period

( 995 )

( 1,631 )

Cash and cash equivalents at the beginning of the reporting period

4,165

5,796

Cash and cash equivalents at the end of the reporting period

3,170

4,165

Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES

Net cash (used in) investing activities

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES Going Concern

Funds

Grants Received

plans for the Charity and this combined

funds:-

of Financial Activities when the

The Trustees have reviewed the future with the strength of the balance sheet and future funds already secured are

The charity maintains the following •

confident that the Charity will remain a going concern for many years to

come. The Charity is a public benefit entity.

Basis of Accounting

•

Restricted - where the purpose to

conditions for entitlement have been

been restricted by the donors

conditions for entitlement have been

which the funds may be used has

Designated - where the funds are

unrestricted but the Trustees have designated them for a specific purpose

The principal accounting policies

Funds have been set up and designated

financial statements are set out below.

between funds are agreed by the

applied in the preparation of these

These policies have been consistently

applied to all the years presented unless otherwise stated.

These financial statements are prepared on a going concern basis under the

historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.

Grants are recognised in the Statement

by the Board of Trustees and transfers Trustees.

Income Recognition

Charitable activity income is measured

met. Grants received before the

met are deferred and included in creditors at year-end. Subsidies Receivable

A subsidy is made to host companies

who employ a disabled person under the terms of the Work Choice Programme. The subsidy arises on the employment

of the disabled person and remains for

the term of the employment contract. It is accounted for on an accruals basis.

at the fair value of the consideration

Pensions

the amount receivable for goods

schemes, the Defined Benefit Scheme

received or receivable and represents supplied or services rendered, net of

returns, discounts and rebates allowed and value added taxes.

The Charity operates two pension

which was closed to new entrants in

2002 and the Group Personal Pension Scheme.

Consolidation

Donations are recognised as income

The Defined Benefits scheme, the

subsidiary company, RBLI Contracts

receive has been established, receipt

separately, is a multi-employer scheme.

The company has a wholly-owned Limited. Consolidated financial

statements have not been prepared as it has been dormant for several years

and the activities of the subsidiary are

not material to the group. Information concerning the subsidiary is set out in note 7.

when received or when entitlement to is probable, and the amount can be

quantified with reasonable accuracy. Gift Aid receivable is included when

claimable. RBLI merged with Vanguard Trust during the year. The merger has

been treated as a transfer of net assets, with the net amount being shown as

income (i.e. donation) in the Statement of Financial Activities.

assets of which are held and managed The actuaries have attributed scheme assets and liabilities to RBLI for the

requirements of FRS102. The impact on the current year SOFA was an actuarial loss of £0.4m and a deficit on the balance sheet of £1.9m.

For the defined benefit section the

amounts charged in expenditure are

the current service costs and gains and

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS Continued

1. ACCOUNTING POLICIES continued losses on settlements and curtailments.

Statement of Financial activities includes

Investments are subject to review for

Past service costs are recognised

Personal Pension Scheme in the year.

of a reduction in their carrying value.

They are included as part of staff costs. immediately in the Statement of

Financial Activities if the benefits have vested.

If the benefits have not vested

immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected

return on assets are shown as a net

amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in ‘Other recognised gains and losses’.

The Defined Benefit schemes is funded, with the assets of the scheme held

separately from those of the underlying employers, in separate trustee administered funds.

contributions payable to the Group Short term benefits

Short term benefits, including holiday

recognised as an expense in the period

basis in the period in which they are

in which the service is incurred. Taxation

The company is a registered charity, and as such is entitled to certain tax exemptions on income and profits

apportioned support costs.

charitable activities including

are applied solely for charitable

Where support costs cover more

objectives, if these profits and surpluses

apportioned support costs.

purposes.

than one area of activity the costs are

equivalent to the current rate of return

investments with original maturities

equivalent currency and term to the

overdrafts.

The actuarial valuations are obtained at

shown within borrowings in current

banks, other short term highly liquid

on a high quality corporate bond of

of three months or less and bank

scheme liabilities.

Bank overdrafts, when applicable, are

income and grant income, including

furtherance of the charity’s primary

unit method and discounted at a rate

In addition the amount charged to the

the costs incurred in raising donation

comprises the costs incurred on

cash in hand, deposits held at call with

assets on the face of the balance sheet.

Expenditure on raising funds includes

any trading activities carried on in

an actuarial basis using the projected

is presented separately after other net

incurred.

Expenditure on charitable activities

Cash and cash equivalents includes

liability, net of the related deferred tax

Costs are recognised on an accruals

from investments, and surpluses on

fair value and liabilities are measured on

The resulting defined benefit asset or

in which it occurs.

Charitable Expenditure

similar non-monetary benefits, are

Cash and cash equivalents

balance sheet date.

Any impairment is recognised in the year

pay, termination payments and other

Pension scheme assets are measured at

least triennially and are updated at each

impairment when there is an indication

liabilities.

Investments

Investments are stated at fair value,

using the bid price, and the value of

both realised and unrealised gains are included in the Statement of Financial Activities within the relevant Funds.

allocated to each activity based on revenue.

Costs of expenditure on raising funds

includes the fees incurred in managing the Charity’s investments. Operating Leases

Annual rentals under operating leases

are charged against income on a straight line basis over the lease term. Stock and Work-in-Progress

Raw materials, work-in-progress and

finished goods are valued at the lower of cost or estimated selling price less cost to complete and sell.

Cost comprises the direct cost of

production and the net attributable

2018/2019 ANNUAL ACCOUNTS

proportion of works overheads

Assets Under Construction

Stock provisioning

Cost is determined on an average cost

expenditure incurred in creating assets.

considers the recoverability of the cost

price including transport and handling

completion and capitalisation.

appropriate to each department. method. Cost includes the purchase directly attributable to bringing the stock to its present location and condition

Fixed Assets

Tangible assets are stated at cost

(or deemed cost) less accumulated depreciation and accumulated impairment losses.

Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use,

dismantling and restoration costs. Land is not depreciated. Depreciation

on other assets is calculated, using the

Assets under construction represents Depreciation takes place only after Limitation of Capitalisation

Expenditure below £1,000 per item

does not qualify for capitalisation as a

Fixed Asset as it is not considered to be material.

Financial Risk Management The Charity’s operations expose it to some financial risks that include the

effects of changes in market interest rates and its liquidity position. The Charity has in place a risk

management programme that seeks

to limit adverse effects on the financial performance of the Charity.

straight-line method, to allocate the

Critical accounting estimates and

values over their estimated useful lives,

The charity makes estimates and

depreciable amount to their residual as follows: •

Freehold building - 2% straight-line

•

Buildings plant - 7% straight-line

•

Plant, Machinery, Fixtures and

•

Motor vehicles - 25% straight-line

•

Office equipment - 33% straight-

Fittings - 15% straight-line

line

An annual impairment review is

undertaken and adjustments are made

assumptions

assumptions concerning the future. The resulting accounting estimates will

by definition seldom equal actual results. The estimates and assumptions that have a significant risk of causing a

material adjustment to the carrying

amounts of assets and liabilities within the next financial year are addressed below.

At each balance sheet date the charity

of stock and the associated provisioning required.

When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around

anticipated saleability of finished goods and future usage of raw materials. Impairment of debtors

The charity makes an estimate of the recoverable value of trade and other debtors.

When assessing impairment of trade and other debtors, management considers factors including the current credit

rating of the debtor, the ageing profile of debtors and historical experience. Defined benefit pension scheme

The charity has an obligation to pay

pension benefits to certain employees. The cost of these benefits and the

present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset

valuations and the discount rate on corporate bonds.

Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions

reflect historical experience and current trends.

where the adjustment is material.

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS Continued

1. ACCOUNTING POLICIES continued Financial Instruments

Investments which are not subsidiaries

Trade payables are recognised

Sections 11 and 12 of FRS 102 in respect

is normally the transaction price. Such

at transaction price as all of them are

â&#x20AC;&#x153;The company has chosen to adopt of financial instruments. (i) Financial assets

Basic financial assets, including trade

and other receivables, cash and bank balances are initially recognised at

are initially measured at fair value, which assets are subsequently carried at fair

value and the changes in fair value are recognised in fair value reserve.

Financial assets are derecognised when â&#x20AC;˘

transaction price.

At the end of each reporting period financial assets are assessed for

(a) the contractual rights to the cash flows from the asset expire or are settled, or

â&#x20AC;˘

initially and subsequently measured current.

Financial liabilities are derecognised

when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. (iii) Offsetting

(b) substantially all the risks and

Financial assets and liabilities are offset

asset are transferred to another

financial statements when there is a

objective evidence of impairment. If an

rewards of the ownership of the

and the net amounts presented in the

is the difference between the carrying

party.

legally enforceable right to set off the

asset is impaired the impairment loss

amount and the estimated cash flows. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring

after the impairment was recognised, the impairment is reversed.

The reversal is such that the current

carrying amount does not exceed what the carrying amount would have been

had the impairment not previously been recognised.

The impairment reversal is recognised in

(ii) Financial liabilities

Basic financial liabilities include trade

and other payables, and loans. They are initially recognised at transaction price.

recognised amounts and there is an

intention to settle on a net basis or to

realise the asset and settle the liability simultaneously.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Accounts payable are classified as

current liabilities if payment is due

within one year or less. If not, they are presented as non-current liabilities.

profit or loss.

2018/2019 ANNUAL ACCOUNTS

2. INVESTMENTS Investment dividends Interest receivable

2019 £000s

2018 £000s

215

199

224

209

2018 Support costs

Total

3. TOTAL EXPENDITURE 2019 Activities undertaken directly £000s

2019 Support costs

2019 Total

£000s

2018 Activities undertaken directly £000s

672

179

851

561

352

913

Employment Solutions

4,614

523

5,137

4,173

528

4,701

Britain’s Bravest Manufacturing

7,836

920

8,756

5,788

736

6,524

RBLI Living

5,147

528

5,675

5,446

731

6,177

18,269

2,150

20,419

15,968

2,347

18,315

Raising Funds

£000s

Auditors’ remuneration was £45,000 (2018 provided by PwC: £46,000). In addition taxation services provided by BDO were £3,690 (2018 provided by PwC: £3,900) Operating lease payments included in Resources Expended totalled £298,635 (2018 : £333,723). The loss on disposal of fixed assets was £5,723 (2018 : £21,322). SUPPORT COSTS 2019

Employment Solutions

RBLI Living

Fundraising

2019 Total

£000s

Britain’s Bravest M’facturing £000s

£000s

Executive

110

256

Finance

146

256

147

599

Business Systems

167

389

Human Resources

157

367

Marketing

229

Other Costs

104

Pension Deficit

206

523

920

528

179

2,150

Support costs are allocated, where practicable, to the charitable activities on a directly attributable basis. The remainder is apportioned to each activity based on revenue. SUPPORT COSTS 2018 Comparatives

Employment Solutions

RBLI Living

Fundraising

2018 Total

£000s

Britain’s Bravest M’facturing £000s

£000s

Executive

234

Finance

131

183

182

585

Business Systems

117

375

Human Resources

138

442

Marketing

243

Other Costs

308

Pension Deficit

160

528

736

731

352

2,347

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS Continued

4. DIRECTORS, EMPLOYEES AND VOLUNTEERS THE AVERAGE MONTHLY NUMBER OF PERSONS EMPLOYED BY THE

2019

2018

Number

FTE

Number

FTE

Employment Solutions

RBLI Living

144

100

156

107

Britain’s Bravest Manufacturing

142

119

Fundraising and Marketing

Executive & Corporate Services

416

311

400

309

STAFF COSTS

2019 £000s

2018 £000s

Wages and salaries

8,289

8,081

Social Security costs

715

700

Other Pension costs

670

596

Other costs

FRS 102 adjustment in SOFA

251

205

9,956

9,599

COMPANY DURING THE YEAR WAS:

During the year a total of 584 volunteers (2018: 265 ) worked for a total of 16,293 hours (2018: 14,563 hours)

During the year a total of £96,816 was incurred on recruitment fees (2018: £51,590)

The total number of employees whose emoluments, excluding pension contributions, were in excess of £60,000 per annum fell within the following bands: EMPLOYEE EMOLUMENTS IN EXCESS OF £60,000 Emolument band £

2019 Employees

2018 Employees

60,001 - 70,000

70,001 - 80,000

80,001 - 90,000

100,001 - 110,000

110,001 -120,000

130,001 -140,000

140,001 -150,000

2018/2019 ANNUAL ACCOUNTS

All the ten (2018: thirteen) employees earning over £60,000 p.a. participated in the company pension scheme, and pension contributions of £79,103 were made by RBLI in the year to 31 March 2019. (2018 : £89,560). The total remuneration of the above ten key ( 2018 : 13 ) management personnel was £1,119,860 (2018: £1,401,749). This includes redundancy pay of £0 (2018 : £48,940).

Total redundancy pay for the year including the above was £114,416 ( 2018 : £108,212). No remuneration is paid to the Trustees as they act on an honorary basis. Travel expenses were reimbursed to 2 Trustees (2018 : 1) and amounted to £850 in the year (2018 : £57).

The Charity is grateful for the large number of volunteers who have helped support the charity over the last 12 months. All areas of the Charity have benefited from this support ranging from admin support, job coaching, care etc. Governance costs for the year were £108,532 (2018: £100,797)

5. TANGIBLE ASSETS Freehold Land and Buildings £000s

Buildings Plant

Fixtures and Fittings £000s

Motor Vehicles

Office Equipment

£000s

Plant and Machinery £000s

£000s

Assets Under Construction £000s

£000s

At 1 April 2018

16,482

1,536

1,176

1,660

Additions

1,188

152

Disposals

Transfers

Total £000s

484

422

21,845

2,304

3,680

( 53 )

( 222 )

(6)

( 96 )

( 377 )

149

( 262 )

17,684

1,536

1,424

1,570

391

2,464

25,148

At 1 April 2018

4,539

1,104

870

1,030

390

8,018

Charge for year

348

103

124

723

( 47 )

( 222 )

(6)

( 96 )

( 371 )

At 31 March 2019

4,887

1,207

919

932

346

8,370

Net book value at 31 March 2019

12,797

329

505

638

2,464

16,778

Net book value at 31 March 2018

11,943

432

306

630

422

13,827

COST

At 31 March 2019 ACCUMULATED DEPRECIATION

Disposals

The Trustees believe that the market value of land is significantly higher than the book value, which is negligible as it was transferred to the Charity in 1919, although a professional valuation was not performed.

6. INVESTMENTS AT FAIR VALUE MANAGED INVESTMENT PORTFOLIO

2019 £000s

2018 £000s

Listed on UK Stock Exchange

1,927

1,734

UK Fixed Interest

2,159

1,873

Overseas Equities

1,893

2,096

Overseas Fixed Interest

130

Alternative Investments

524

243

Cash Reserve

565

758

Fair Value at 31 March

7,068

6,834

Cost of Managed Investments at 31 March

6,483

6,354

The difference between the fair value and the cost of investments is £585,000 (2018: £480,000) and represents the fair value reserve as required by the Companies Act 2006.

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS Continued

6. INVESTMENTS continued ANALYSIS OF MOVEMENTS OF INVESTMENTS

2019 £000s

2018 £000s

Valuation at 1 April

6,834

7,085

Realised Gains

195

Unrealised Gains/(Losses)

( 280 )

Deposits and Withdrawals

less: Management Costs

( 66 )

( 67 )

Valuation at 31 March

7,068

6,834

The directors believe the carrying value of the investments is supported by their underlying net assets.

INVESTMENT IN SUBSIDIARY

The Company owns 100% of the issued share capital (being 2 shares of £1 each) of RBLI Contracts Ltd, a dormant company. There has been no income or expenditure in the subsidiary in the year (2018: none) and there are no capital and reserves at the year end (2018: none).

STOCKS AND WORK IN PROGRESS 2019

2018

£000s

519

374

526

382

2019 £000s

2018 £000s

Trade debtors

1,595

1,516

Other debtors

Prepayments and accrued income

736

805

2,369

2,371

Raw materials Finished goods The replacement cost of raw materials does not differ materially from the value stated in the balance sheet. The cost of raw materials recognised as an expense in the year was £ 2,764,986 (2018: £2,594,990)

DEBTORS

2018/2019 ANNUAL ACCOUNTS

10.

CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR

AMOUNTS FALLING DUE WITHIN ONE YEAR:

2019

2018

£000s

1,057

862

Other taxation and social security

406

500

Other creditors

1,635

1,820

3,200

3,229

Trade creditors

Accruals Deferred Income

11.

ASSETS PLEDGED TO UNDERWRITE PENSION DEFICIT

A charge over the Churchill Centre and the factory buildings at Aylesford has been granted to The Royal British Legion Pension Fund Trustees as security for the pension deficit liability and to support the Employers Covenant. This is a contingent liability and if the deficit is not eliminated by 2028 a cash injection / payment could be required.

12.

FUND BALANCES CARRIED FORWARD AT 31ST MARCH 2019

2019

2018

Unrestricted Funds £000s

Restricted Funds £000s

Total Funds £000s

Unrestricted Funds £000s

Restricted Funds £000s

Total Funds £000s

Tangible assets

9,629

7,149

16,778

8,871

4,956

13,827

Investments

6,997

7,068

6,834

16,626

7,220

23,846

15,705

4,956

20,661

1,100

1,765

2,865

2,930

759

3,689

17,726

8,985

26,711

18,635

5,715

24,350

( 1,934 )

( 1,506 )

15,792

8,985

24,777

17,129

5,715

22,844

Net current assets NET ASSETS (excl. pension scheme liability) Defined benefit pension scheme (liability) NET ASSETS (inc. pension scheme liability/asset)

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS Continued 13.

ANALYSIS OF FUNDS

UNRESTRICTED FUNDS

There are five unrestricted funds, two of which are designated:

The designated Future Projects and Developments Fund holds reserves of £5m (2018: £5m) for the development of the RBLI Village. The designated Operating Cost Reserve provides a reserve covering four months of operating cost.

The General Funds reflects the tangible fixed assets used by the charity to provide services and support to beneficiaries.

The Pension Reserve reflects the balance of surplus or deficit on the defined benefit pension scheme and moves in line with annual valuations as per note 14. The Fair Value Reserve reflects the balance of surplus or deficit on the revaluation of the investments as per note 6.

Balance 1st April 2018 £000s

Income

Expenditure

Gains and losses

£000s

Balance 31st Mar 2019 £000s

Future Projects and Developments

5,000

Operating Cost Reserve

5,000

10,000

8,155

16,785

( 17,925 )

126

7,141

( 1,506 )

( 251 )

( 222 )

( 1,934 )

480

105

585

17,129

16,830

( 18,176 )

15,792

DESIGNATED FUNDS SET ASIDE BY THE TRUSTEES

General Fund Pension Reserve Fair Value Reserve Total Unrestricted Funds

RESTRICTED FUNDS There are two restricted funds: Capital and Revenue Grants hold restricted grants received for the development of property, plant and equipment and the provision of services to disabled people and Armed Forces veterans. There have been no transfers between any of the unrestricted or restricted funds. RESTRICTED FUNDS

Balance 1st April 2018 £000s

Income

Expenditure

£000s

Balance 31st March 2019 £000s

Capital and Revenue Grants

1,818

4,813

( 176 )

6,455

Libor MOD Grants

3,897

700

( 2,067 )

2,530

Total Restricted Funds

5,715

5,513

( 2,243 )

8,985

EXPLANATION The £700k Libor Grant is contributing to the development of a new 15 bedroom care facility and day care centre.

2018/2019 ANNUAL ACCOUNTS

14.

PENSION SCHEME

Royal British Legion Industries participates in two staff pension funds. The Defined Benefit Scheme (the Fund), and the Group Personal Pension Plan ( the GPPP), both operated in conjunction with The Royal British Legion. A charge over the Churchill Centre and the factory buildings at Aylesford has been granted to The Royal British Legion Pension Fund Trustees as security for the pension deficit liability and to support the Employers Covenant. Contributions to the Group Personal Pension Plan in the year were £430,000 (2018 : £401,000). Contributions are limited to twice the level of the employees’ contribution. There were 351 employees participating in the scheme at 31 March 2019 ( 2018 : 351) The Defined Benefit Scheme was closed to new entrants in 2002. During the year no contributions were made by RBLI (2018 : £NIL). The most recent formal scheme published actuarial valuation was carried out by First Actuarial LLP as at 1 April 2017. The major financial assumptions used by the actuary for FRS102 purposes were: ACTUARIAL ASSUMPTIONS

2019

2018

Discount rate (%p.a.)

2.40%

2.60%

Retail Price Inflation (%p.a.)

3.20%

3.10%

Consumer Price Inflation (%p.a.)

2.20%

2.10%

Salary increase rate (%p.a.)

3.30%

3.10%

Post 98 Pension

3.10%

3.00%

Post 98 GMP

2.00%

1.90%

Rate of increase for deferred pensioners

2.20%

2.10%

Current pensioners Men

86.8

87.7

Current pensioners Women

89.0

89.6

Future pensioners now aged 45 Men

88.1

89.1

Future pensioners now aged 45 Women

90.5

91.2

FAIR VALUE OF FUND ASSETS

2019 £000s

2018 £000s

Equities

3,783

3,656

Bonds

4,679

4,702

Gilts

2,430

2,308

Other Growth Seeking assets

2,629

2,797

Cash

337

614

Total

13,858

14,077

RATE OF INCREASES OF PENSIONS IN PAYMENT

LIFE EXPECTANCY AT AGE 65:

In addition, the Trustees hold insured annuity policies. The value of these annuities has been excluded from both the assets and the liabilities since the liability is matched directly by an asset value of equal value. This is consistent with previous disclosures. The Fund does not invest in the sponsor’s own financial instruments, including property or other assets owned by the sponsor.

TOTAL COST RECOGNISED AS AN EXPENSE:

2019 £000s

2018 £000s

Administration expenses

100

Past service cost

118

Net Interest

105

251

205

Total cost recognised as an expense:

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS Continued 14.

PENSION SCHEME continued

RECONCILIATION OF SCHEME ASSETS AND LIABILITIES

£000s Assets

£000s Liabilities

£000s Total

At 31 March 2018

14,077

( 15,583 )

( 1,506 )

Benefits paid

( 410 )

410

Employer contributions

Administration expenses

( 93 ) ( 118 )

( 118 )

360

( 400 )

( 40 )

( 101 )

- Return on plan assets excluding interest income

( 121 )

At 31 March 2019

13,858

( 15,792 )

( 1,934 )

( 93 )

Past service cost Interest income/(expense) remeasurement gains - Actuarial gains

15.

TAXATION

The Company is exempt from liability to corporation tax on its charitable activities due to its status as a registered charity.

16.

CAPITAL COMMITMENTS

Capital Commitments contracted for at year end but not provided for.

17.

2019 £000s

2018 £000s

645

2,259

OPERATING LEASE COMMITMENTS

The Company had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

OPERATING LEASES

2019 £000s

2018 £000s

Payments due not later than one year

178

201

Payments due later than one year and not later than five years

142

185

Total operating leases

320

386

18.

RELATED PARTY TRANSACTIONS

A donation of £7,383 was received in 2019 from Kent Community Foundation (2018: £12,252). Blair Gulland, a trustee of RBLI, is also a trustee of Kent Community Foundation.

2018/2019 ANNUAL ACCOUNTS

19.

GRANTS AND DONATIONS

Donations and Grants of £5,000 or more, received in either current or prior year, are shown below. These are reported in the Statement of Financial Activites either under Charitable activities or under income from donations. The Vanguard Trust donation consisted of properties valued at £1,160,000 plus cash and investments. GRANTS/DONATIONS RECEIVED FROM

2019

2018

1,339,972

Barratt Developments

750,000

MOD acting on behalf of Her Majesty's Treasury

700,000

1,479,000

BBO Grant

664,425

580,883

Erskine Hospital

350,000

75,000

ABF The Soldiers' Charity

285,500

420,200

Workchoice employee support grant

259,298

273,667

Annington

100,000

Richard Oldfield

100,000

MOD Aged Veterans Fund

86,700

305,880

Fidelity UK Foundation

75,000

The Swire Charitable Trust

61,134

RAF Benevolent Fund

57,500

Greenwich Hospital

40,190

34,271

The MacRobert Trust

40,000

The National Lottery Community Fund (Scotland)

40,000

Vanguard Trust

MOD Armed Forces Covenant

39,992

339,750

Poppy Scotland

33,549

14,472

Queen Mary's Roehampton Trust

30,000

20,000

Veterans' Foundation

29,752

Scottish Veterans Fund

28,194

25,000

Annington Trust

25,000

31,416

John Scott Charitable Trust

22,500

Centor

22,000

Postcode Community Trust

18,000

The Royal British Legion

17,500

67,400

Next PLC

15,000

12,000

The Army Central Fund

15,000

Tesco (Groundwork UK)

11,000

3,000

Susan H Guy Charitable Trust

10,000

The Graham Trust

10,000

The Eveson Charitable Trust

8,000

5,000

Kent Community Foundation

7,383

12,252

Redrow Homes

6,909

Edith Lilian Harrison 2000 Foundation

5,000

Kilpatrick Fraser Charitable Trust

5,000

Michael Marsh Charitable Trust

5,000

Screwfix Foundation

5,000

The Rowlands Trust

5,000

WO Street Charitable Foundation

5,000

2018/2019 ANNUAL ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS Continued 19.

GRANTS AND DONATIONS continued 2019

2018

Officers Association

4,950

3,175

Aylesford Parish Council

4,600

10,000

Brownlie Charitable Trust

4,000

Anson Charitable Trust

3,000

Inman Charity

3,000

We Work

1,000

5,060

BAE Systems

10,000

Golding Homes

5,000

Lloyd's Patriotic Fund

100,000

Sainsbury's Tonbridge Charity

5,234

The Edith Murphy Foundation

5,000

The Morrisons Foundation

96,600

UFI Charitable Trust

11,305

5,375,048

3,940,565

GRANTS/DONATIONS RECEIVED FROM continued

TOTAL

20.

NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES 2019 £000s

2018 £000s

Net income / ( expense )

2,155

( 826 )

(Gains) / losses on investment assets

( 300 )

183

Investment management fees deducted from fund

Difference between pension charge and cash contributions

206

160

( 224 )

( 209 )

723

636

( 144 )

( 67 )

( 312 )

(Decrease) in creditors

( 29 )

( 96 )

Net cash inflow / (outflow) from operating activities

2,461

( 442 )

Investment income Depreciation on tangible fixed assets Loss on disposal of fixed assets (Increase) in stocks Decrease/(Increase) in debtors

2018/2019 ANNUAL ACCOUNTS

LEGAL & ADMINISTRATIVE INFORMATION TRUSTEES

SENIOR OFFICERS

Chairman:

Chief Executive

Mr S W Kingsman DL

Mr S F Sherry CMG, OBE

Royal British Legion Industries Limited

Vice Chairman

Director of Corporate Services

Aylesford

Mr F Martin DL Brigadier H H Kerr OBE Mrs N Ahmed OBE DL Mr A B Gulland K Cearns OBE FCA FCCA Mr A Watson

& Company Secretary Mr P Defraine ACMA Director of Britain’s

Bravest Manufacturing Co. Mr G Streetley

Director of Strategic Development Mrs L Farmer

(Appointed Sept 2018)

Director of Scotland’s

Mrs S Mason

Miss M Ferguson

(Appointed September 2018) Ms K Bosley

(Resigned September 2018)

Bravest Manufacturing Co.

HEAD OFFICE AND REGISTERED OFFICE Hall Road

ME20 7NL TEL: 01622 795900 FAX: 01622 882195

Company Number: 0158479

Incorporated in England and Wales Registered Charity Number England & Wales: 0210063

The charity is a public benefit entity Registered Charity Number Scotland: SC048795

Director of Care & Welfare Mr W Campbell-Wroe

Director of Employment

Mr D Montgomery

Solutions

Mr D Crampton DL

Mr S Woodward (Resigned April 2018)

Mr A Milton

Director of RBLI Living

Mr J Rudoni (Resigned April 2018)

2018/2019 ANNUAL ACCOUNTS

INDEPENDENT AUDITORS BDO

55 Baker Street London

W1U 7EU

BANKERS Barclays Bank Plc

Corporate Banking Kent Team, 2nd Floor,

30 Tower View Kings Hill

West Malling ME19 4UY

INVESTMENT ADVISORS

Julius Baer Portfolio Managers Ltd 1 St Martinâ&#x20AC;&#x2122;s Le Grand London

EC1A 1HQ

SOLICITORS

Thomson Snell & Passmore LLP 3 Lonsdale Gardens Tunbridge Wells TN1 1NX

Brachers LLP

59 London Road Maidstone ME16 8JH

2018/2019 ANNUAL ACCOUNTS

Keep in touch

rbli.co.uk

Royal British Legion Industries Hall Road

wearelifeworks.org.uk

Aylesford ME20 7NL

britainsbravestmanufacturing.org.uk scotlandsbravest.org.uk

01622 795900

Royal British Legion Industries

marketing@rbli.co.uk rbli.co.uk

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@RBLI Royal British Legion Industries

FUNDRAISING FOR US Contact fundraising@rbli.co.uk Mon to Fri 9am-5:30pm VOLUNTEER FOR US Contact volunteer@rbli.co.uk Mon to Fri 9am-5:30pm

PARTNER WITH US Contact fundraising@rbli.co.uk Mon to Fri 9am-5:30pm

BECOME A FRIEND OF RBLI Contact enquiries@rbli.co.uk Mon to Fri 9am-5:30pm

Registered charity number 210063

Royal British Legion Industries