The annual accounts showed an end of year group operating deficit of £302,100. After taking account of unrealised and realised gains of £1,202,667 on the investments, there is an overall group surplus of £900,567. This group deficit includes £199,091 of investment income and bank interest.
Across all direct support services there has been a £1,082,432 (7.0%) increase in group income to £16,614,441 in 2020/21.
Expenditure has increased and decreased in line with changes to service delivery. The expenditure breakdown is shown in the chart above.
Adult Housing and Respite Services have seen a £1,940,272 (15.2%) increase in income to £14,677,328 in 2020/21 due mainly to the start of a new contract in Camden, and full year income levels from a number of contracts in Islington that started in 2019/20.
Community Services have seen an £814,577 (41.0%) decrease in income to £1,173,138 in 2020/21 due to a decrease in direct 1:1 support provided by our LDN4U outreach services and the closure of our LDN Connect group activity-based service as a result of the Coronavirus pandemic.
KCA has also been affected by the pandemic and has seen a £22,816 (4.7%) decrease in income to £458,581 due to the level of service provision in all activity areas reducing but being largely offset by additional grant funding secured.
| Summarised Statement of Financial Activities | 31st March 2021 | 31st March 2020 |
|---|---|---|
| Income from donations and legacies | £28,913 | £40,867 |
| Income from charitable activities | £16,309,046 | £15,205,713 |
| Investments | £199,091 | £204,718 |
| Income from other trading activities | £77,391 | £80,711 |
| Total income | £16,614,441 | £15,532,009 |
| Expenditure on raising funds | £206,263 | £195,322 |
| Expenditure on charitable activities | £16,710,278 | £15,363,150 |
| Total expenditure | £16,916,541 | £15,558,472 |
| Net income / (expenditure) | (£302,100) | (£26,463) |
| Net gains / (losses) on investments | £1,202,667 | (£758,573) |
| Net movement in funds | £900,567 | (£785,036) |
| Fund balances brought forward at 1 April | £9,376,650 | £10,161,686 |
| Fund balances carried forward at 31 March | £10,277,217 | £9,376,650 |
| Summarised Balance Sheet | 31st March 2021 | 31st March 2020 |
|---|---|---|
| Fixed Assests | £10,795,947 | £9,551,630 |
| Current assets | £1,992,876 | £2,252,489 |
| Creditors (amounts due within one year) | (£1,965,603) | (£2,106,963) |
| Net current liabilities | £27,273 | £145,526 |
| Creditors (amounts falling more than one year) | (£546,003) | (£320,506) |
| Net Assets | £10,277,217 | £9,376,650 |
| Restricted funds | £390,397 | £349,414 |
| Unrestricted designated funds | £9,804,730 | £8,735,158 |
| Unrestricted general funds | £82,090 | £292,078 |
| Total Funds | £10,277,217 | £9,376,650 |
LDN London’s reserves policy is informed by its:
The level of reserves is monitored and reviewed by the Trustees on a quarterly basis.
The organisation holds 3 types of reserves. Unrestricted general (£82,090), designated (£9,804,730) and restricted (£390,397). The total group reserves currently held are £10,277,217. The reserves breakdown is shown in the chart above.
Unrestricted general reserves are held to meet day to day operating costs and the risks associated with fluctuations in income, particularly through the loss of contractual arrangements. Currently our unrestricted general reserves are £82,090. It is the aim of the Trustees to increase this fund through improved financial performance to at least 3 months of running costs over the coming years which currently equates to approximately £4.22M.
Designated reserves are comprised of fixed assets and investment funds.
The designated fixed assets reserves are held to meet the future needs of our services. Currently the LDN London’s designated fixed assets reserves are £1,865,805. The property fund represents the net book value of the two freehold and one leasehold buildings owned by the charity and the other fixed assets funds represents the net book value of motor vehicles, building improvements, fixtures and fittings and computers fully owned by LDN London.
The designated investment reserves are held to provide investment income.
Income arising from these funds is applied by LDN London to finance non-statutory funded activities that would not otherwise take place, either because funding has ceased, or because funding is not available. These activities form part of the strategic aims of LDN London. The income from these investment portfolios plays a vital role in supporting the charity’s activities and for this reason the Trustees have allocated the capital value of those investments as a designated fund. This fund is to be held for the longer term to help support similar worthy unfunded activities in the future. Currently our designated investment reserves are £7,938,925 which includes the investment fund (£7,541,190) and the small grants fund (£397,735). It is the aim of the Trustees to increase the investment fund to provide an annual income of £300,000 which, based on a 3.5% return, equates to approximately £8.6M.
The restricted reserves include the Alice Gestetner investment fund (£242,945) and other funds which have been raised which also enable the delivery of non-statutory funded activities by LDN London. Currently our restricted reserves are £400,397. As these funds are restricted, they are not available for general purposes of the charity. Whilst the Trustees do not have a target for increasing the level of restricted funds, it is their aim to secure ongoing additional fundraised income (both restricted and unrestricted) to support the charity’s activities and to spend these funds in a timely manner.
LDN London’s investment powers which are set out in the Articles of Association, gives the charity the power ‘to invest any money that LDN London does not immediately need in any investments, securities or properties; and to accumulate and set aside funds for special purposes or as reserves’.
LDN London’s Investment Managers are HFMC Wealth of 29 St John’s Lane, London, EC1M 4NA.
The market value of LDN London’s investments was £8,181,870 compared with £7,229,703 in the previous year. There were net unrealised and realised gains of £1,202,667 on the investment portfolio during the year. These monies are invested in 2 discretionary managed portfolio funds: with Cazenove Capital and Brewin Dolphin.
| As at 31 March 2021, LDN London's investments comprised: | |
|---|---|
| Equities | £4,526,201 |
| Fixed Interest | £1,857,586 |
| Deposits | £347,013 |
| Commodities | £945,148 |
| Other | £505,922 |
| Total | £8,181,870 |
The portfolio is invested with an emphasis on a balance between income and capital growth. It is managed with a medium risk approach with a broad spread of equities that may include an element in cash and / or bonds.
The return over the year from the Cazenove Fund was +5.8% which was above the benchmark return of 2.1%. The return from the Brewin Dolphin Main Fund was 16.7% which was above the benchmark return of 4.0%. The return from the Brewin Dolphin Alice Gestetner Fund was 16.3% which was above the benchmark return of 4.5%. The return from the Brewin Dolphin Small Grants Fund was 16.2% which was above the benchmark return of 4.5%. The returns from the funds held with Brewin Dolphin reflect the recovery of the stockmarket during the year, and the correction from the 17.0% fall in the funds valuations, due to the start of the Covid19 pandemic in the 4th quarter of 2019/20.
The investment income of £197,448 in 2020/21 (see note 3) was used to fund the Family Services Team (£49,020), the Rainbows Nursery (£101,389), a proportion of the LDN Drop-in Coordinator post and building costs (£25,920) and grants provided by the Alice Gestetner Fund (£21,119). The investment income breakdown is shown in the chart above.
These few pages set out a summary of our our annual accounts and what we have achieved in 2021. To download the official set of accounts please click below.
