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ANNUAL ACCOUNTS

2016/2017

WWW.RBLI.CO.UK


FRONT COVER: Major Heather Stanning, Olympic champion, on top of the O2 in London at the launch of our new fundraising campaign #BeBraveWithMe

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CONTENTS 04

HOW WE HELP

06

WHERE THE MONEY GOES

09

CHAIRMAN AND CHIEF EXECUTIVE’S REVIEW

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OUR BOARD OF TRUSTEES

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OUR SENIOR MANAGEMENT TEAM

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TRUSTEES REPORT

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STRATEGIC REPORT

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INDEPENDENT AUDITORS REPORT

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FINANCIALS

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LEGAL AND ADMINISTRATIVE INFORMATION

Royal British Legion Industries

@RBLI

Royal British Legion Industries 2016/2017 ANNUAL ACCOUNTS

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HOW WE R HELP

oyal British Legion Industries (RBLI) is a national charity supporting the Armed Forces, people with disabilities and people who are unemployed.

We improve lives every day by inspiring those we help and supporting them to find work and lead independent lives. This can be adults who have been out of work for over 20 years, people who need support to help them stay in employment after sustaining an injury, older veterans who need care or Armed Forces families. We are proud to have a fantastic team of staff who are dedicated, hardworking and passionate about making a difference. As well as our core support divisions of Corporate Services, including IT, HR, Finance and Strategic Development, which includes fundraising and marketing, we also operate three core divisions of the charity to run our services and support.

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RBLI Employment provides support to those who are long-term unemployed or have disabilities or health conditions. It provides backto-work support, skills training and support for disabled people to help them stay in work. Many of our programmes are delivered on behalf of, or funded by, organisations such as DWP, the Big Lottery, and the European Social Fund.

Britain’s Bravest Manufacturing Company (BBMC) is our social enterprise which directly employs over 120 people, more than 60% of whom have a disability or health condition.

RBLI Living offers accommodation, welfare support and convalescent care to more than 300 people on the RBLI village in Kent, providing independent living in a safe and homely environment.

BBMC manufacture a range of products for both the public and private sectors, generating revenue and creating employment opportunities for injured exforces personnel and people with disabilities and health conditions.

This includes our nursing home Gavin Astor House, assisted living scheme, Queen Elizabeth Court, and a wide range of single veteran and family housing.

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WHERE THE MONEY GOES

LifeWorks is our innovative programme to help Armed Forces veterans back to work. 83% of participants move into employment, education or training within one year.

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40%

Britain’s Bravest Manufacturing Co.

34%

OPERATIONAL COSTS

£14.7M

RBLI Living

23%

3%

Employment Solutions

Raising funds

CAPITAL COSTS

£3.M 89% Veterans’ apartments

1%

4%

Office equipment

Other building work

2%

4%

Fixtures & fittings

Plant & machinery

2016/2017 ANNUAL ACCOUNTS

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Rob Wilson MP, Minister for Civil Society, on a visit to tour Britain’s Bravest Manufacturing Company in October 2016.

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CHAIRMAN AND CHIEF EXECUTIVE’S REVIEW The financial year 2016/2017 has been a hugely impactful year for RBLI as we use our unrivalled expertise in disability employment to influence nationally. For almost 100 years we have been supporting ex-Forces men and women with disabilities and health conditions to retrain and find new work and, more importantly to find fulfilling work which is sustainable. For the past 50 years we have been using this experience to help people in the wider community who are excluded from the labour market - helping them move closer to work as well as closer to their own skills and personal motivations. In 2016/2017 we were called upon to consolidate this expertise, share it, and look to replicate it for the nation’s benefit. We were invited to give evidence to the Department for Work and Pensions Select Committee on how RBLI’s knowledge can help close the UK’s shameful disability employment gap. Despite very healthy employment levels overall, 2.4m people with disabilities and health conditions are out of work. People with disabilities across the country are simply not getting the right support to gain work. With the terrific results RBLI is delivering on our LifeWorks courses, helping veterans with

injuries, long-term health conditions and mental health issues find sustainable work, RBLI gained significant recognition and attention. Through delivering the Work Programme and Access to Work, RBLI has already helped thousands of individuals overcome barriers, and has worked closely with employers too. On top of this, Britain’s Bravest Manufacturing Company is one of the country’s leading disability employers, and a shining example of commercially successful supported employment. It is no surprise then that during 2016, RBLI was visited by no less than four Ministers – all of them keen to understand more about the values, and the operational models, that lie behind our exciting and life-changing results. Penny Mordaunt, Minister for Disabled People, Health & Work, who visited in December 2016, spoke on ITV explaining that she was keen to find out whether RBLI’s approach, and positive outcomes, can be replicated. There is no doubt that we are being pushed to grow and influence faster, and that the nation’s senior leaders are urging us on. This is a call we take on gladly, and in this year’s report and financial performance you will be able to read more about our strategy for growth.

DURING 2016, FOUR MINISTERS VISITED RBLI – ALL OF THEM KEEN TO UNDERSTAND MORE ABOUT THE VALUES, AND THE OPERATIONAL MODELS, THAT LIE BEHIND OUR EXCITING AND LIFE-CHANGING RESULTS.

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IMPROVING LIVES EVERY DAY We launched our exciting ten-year strategy, Improving Lives Every Day, on 1st June 2015. Building on our proven success, the intent is to grow and further develop RBLI’s charitable offering by increasing our national reach, integrating modern facilities, and introducing collaborative and innovative new programmes. The striking thing about 2016-17 is the incredible progress we have already made against the targets in our ten-year plan, at the end of year two!

This gives us huge confidence in the strategic plan, the divisional structure that was created to deliver it, and the organisational values that are bringing it to life every day. Notable achievements include the dramatic transformation of our dynamic Village, with 24 wonderful new homes already built, and a day care centre, care suites, children’s playground, and new nurses’ accommodation all underway.

NOTABLE ACHIEVEMENTS INCLUDE THE DRAMATIC TRANSFORMATION OF OUR DYNAMIC VILLAGE, WITH 24 WONDERFUL NEW HOMES ALREADY BUILT.

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STRATEGIC GOALS 1

Further develop a thriving community with a fit-for-purpose integrated and comprehensive suite of care, accommodation, welfare and employment services and facilities on the Royal British Legion Village in Aylesford.

2

Build a 21st Century social enterprise and employment academy.

3

Build a resilient work, health and training services business, ‘best in class’ at working with people with disabilities, health conditions and those furthest from the workplace.

4

Develop and deliver ‘best-in-class’ pre-employment support for the Armed Forces community, centred on sustainable and relevant variants of LifeWorks programmes across the whole of the UK.

5

Secure funding, sponsorship, awareness, and profile, to deliver the strategic goals and achieve national reach.

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OUR NEW SINGLE-PERSON ACCOMODATION MEETS AN URGENT NEED TO SUPPORT SINGLE MALE VETERANS, WHO RARELY REACH THE TOP OF SOCIAL HOUSING WAITING LISTS ELSEWHERE. 12

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LOOKING BACK ON THE FINANCIAL YEAR 2016/2017 2016/2017 has been a transformational year for The Royal British Legion Village and the diverse community of over 300 people who live on the 70-acre site. Residents of working age and workers at Britain’s Bravest Manufacturing Co. mix with older people, early service leavers in their twenties, and military families who are resettling from overseas. We have seen the creation of much needed single-person flats which, it’s sad to say, are a priority need for single veterans whose lives are in crisis. They need emergency accommodation because there is so much pressure on social housing that single men rarely reach the top of waiting lists. Our purpose-built apartments would not have been possible without the generosity of The LIBOR Covenant Fund, Morrisons Foundation, ABF The Soldiers’ Charity, Garfield Weston Foundation and the Chelsea Barracks Foundation.

THANK YOU TO...

AND TO THE CHANCELLOR USING LIBOR FUNDS

THE STRIKING THING ABOUT 2016/2017 IS THE INCREDIBLE PROGRESS WE HAVE ALREADY MADE AGAINST OUR TEN-YEAR PLAN ... AT THE END OF YEAR TWO!

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INVICTUS GAMES HOUSE AND VICTORY HOUSE We were also delighted to honour the spirit and achievement of the Invictus Games’ athletes in naming the new apartments Invictus Games House and Victory House.

We have organised special events on the Village, including Tea and Resilience meetings and live music concerts in the Garden of Honour, as well as setting up links with over 100 community organisations.

A new outreach programme has also transformed the Village and our Kent-wide pilot programme which is mapping needs and supporting isolated and vulnerable older veterans reached an incredible 277 people this year.

Our work on the Village, and our veterans outreach, have been supported by over 10,000 volunteer hours, a vital contribution to our impact - helping us ensure that no-one is left isolated and alone.

Events have taken place county-wide to ensure that older veterans, especially those without friends or family, all know of the supportive community that is here for them.

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GROWTH CONTINUED BY 16% IN OUR SIGNS D E PA R T M E N T A N D W E M A I N TA I N O U R POSITION AS THE FA S T E S T G R O W I N G MANUFACTURER OF ROAD AND RAILWAY SIGNAGE IN THE UK.

BRITAIN’S BRAVEST MANUFACTURING COMPANY This was a milestone year for Britain’s Bravest Manufacturing Company, which was described by Dominic O’Connell from The Today Programme as “probably the bravest manufacturing company in the world!” Our metal work team leader, Steve Hammond, was selected for the Manufacturer of the Year Top 100, winning vital publicity for our social enterprise. With a £5m turnover, and pioneering track record on disability employment, Britain’s Bravest Manufacturing Company was also promoted as a best-practice example and used in Social Enterprise UK and Rob Wilson MP’s national campaign to promote social value.

With 60% of our workers living with a disability or learning difficulty, we are competing commercially to win customers and win contracts. Growth continued by 16% in our signs department and we maintain our position as the fastest growing manufacturer of road and railway signage in the UK. We can count among our customers Amey, K’NEX, TMP Solutions, Carillion, Highways England, Mason Street Furniture and, at the end of the financial year, were especially proud to win a new long-term contract with Network Rail through competitive tender.

We are delighted that Britain’s Bravest Manufacturing Company is being used by Ministers and influencers to challenge perceptions of what is possible in a supported factory.

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WORK PROGRAMME For the past five years we have been delivering the government’s Work Programme, and as the programme draws to a close we know that we have supported nearly 6,000 long-term unemployed people into sustainable work. The benefits to individuals are multi-layered, including improved self esteem, social networks, structure, direction and financial independence. But the benefits to the whole household, wider community, and finally, to the taxpayer, are immense too. Our new, voluntary-funded outreach programmes, tackling entrenched unemployment in deprived areas of the South East have already engaged with 3,700 people in 25 different towns! RBLI is committed to working with people whose confidence is absolutely at rock-bottom. We know, first-

hand, from five years delivering the Work Programme, that we get better results because our service is personcentred. Our expertise delivering positive work outcomes for people with health conditions and disabilities is put to use in our Access to Work Programme. This programme also had a good year and provided individual workplace assessments to more than 5,000 participants. This intervention makes a real difference to anyone who thinks their health condition might prevent them from working, and is designed to help the employee remain in paid employment. We deliver the programme as a Department of Work and Pensions prime provider across the South of England.

“THE BIGGEST DIFFERENCE IS CONFIDENCE. NOW, I ACTUALLY HAVE A GOAL - I’M GOING TO GET MY OWN PLACE AND GET A JOB. I CAN SEE THAT HAPPENING BUT BEFORE...NO CHANCE.” Lee, supported by the RBLI Employment Team

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83% OF VETERANS ATTENDING LIFEWORKS COURSES ARE IN WORK, WORKPLACE TRAINING OR VOLUNTEERING WITHIN 12 MONTHS. LIFEWORKS One of the main highlights of the year for RBLI was the publication of the independent evaluation of our LifeWorks Programme in the Autumn. This evaluation – undertaken by the Learning and Work Institute – verified our outstanding results showing that 83% of veterans attending LifeWorks courses are in work, workplace training or volunteering within 12 months of the course. This is an incredible result, achieved in just one week of intensive assessment, focus, practical job-seeking work, and personalised coaching. The life-changing outcome of this course won considerable attention, including a full page of coverage in the Evening Standard, at least in part, because four out of five LifeWorks veterans who come on the course have significant barriers to employment including disabilities, long term health conditions, and mental health issues. Our LifeWorks programme has achieved the right balance between support, encouragement, and challenge. We are able to coach vulnerable and disengaged people towards goals and plans they believe in and own. Our dedicated and experienced trainers and vocational assessors are achieving consistent excellence UK-wide and even internationally. During 2016 we launched LifeWorks in Wales, deepened our

delivery partnership with Poppy Scotland, returned to Brunei, and delivered in 43 different locations overall. With generous support from The Annington Trust, The Royal British Legion, and Greenwich Hospital in 2016-17 we were also able to deliver 20 courses tailored to spouses and partners. This LifeWorks for Families programme continues to be successful within the UK, as well as in UK Armed Forces garrisons abroad. With the support of the Covenant Fund we are also delivering LifeWorks courses to veterans within the criminal justice system. We are delighted with this expansion which meant we were able to reach over 500 veterans and spouses in total. Through all this activity RBLI is demonstrating that work is within reach for the most disadvantaged, institutionalised and demoralised in our society. Using LifeWorks, RBLI intends to influence widely and has already held a roundtable discussion engaging senior influencers. This led to top-level discussions within the DWP on the potential in this programme to help unemployed people beyond the military community to find sustainable work. We will continue our efforts to help the nation close the distressing and unnecessary disability employment gap. 2016/2017 ANNUAL ACCOUNTS

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LOOKING AHEAD We are conscious that the success of Britain’s Bravest Manufacturing Company is a beacon of best practice and has symbolic power in the face of pessimism about the potential of the social enterprise sector, or supported factories.

We are proud to share the secret of our success, which is that in all we do every day, we remain person-centred. We would like to take this opportunity to thank all the staff, volunteers, customers, partners, funders, and supporters for an incredible year.

This is a particularly optimistic time for our Village with the opening of new homes for our most vulnerable veterans, and with many more facilities to open within the next 18 months all part of an ambitious £20m plan for Village expansion. We are also looking forward to a strategic investment in training for our entire care workforce, and the consolidation of our move-on model known as STEPIN. We know that our diverse Village community works, and is greatly enhanced by our consistent emphasis on employment and meaningful activity and, as we approach our Centenary year, it is the right time to expand this wonderful community so more veterans can live, work and refocus with us.

Frank Martin VICE CHAIRMAN

Steve Sherry CHIEF EXECUTIVE

WE WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK ALL THE STAFF, VOLUNTEERS, CUSTOMERS, PARTNERS, FUNDERS, AND SUPPORTERS FOR AN INCREDIBLE YEAR.

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WE ARE PROUD TO SHARE THE SECRET OF OUR SUCCESS, WHICH IS THAT IN ALL WE DO EVERY DAY, WE REMAIN PERSON-CENTRED. 2016/2017 ANNUAL ACCOUNTS

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OUR BOARD OF TRUSTEES STEPHEN KINGSMAN DL CHAIRMAN

Stephen is a former Chairman of the Denne Construction Group, which specialises in 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 Canterbury Further Education College, Chairman of Kent Training and Enterprise Council and as an RBLI trustee for four years preceding his election to Chair.

FRANK MARTIN DL VICE CHAIRMAN

Frank is a Deputy Lieutenant for Kent and was formerly Chief Executive of Hornby Plc. He is currently Deputy Chairman of the Dover Harbour Board and Chairman of Governors/ Pro Chancellor of Canterbury Christ Church University.

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DESMOND CRAMPTON DL

BRIGADIER TONY KERR OBE

NADRA AHMED OBE DL

Desmond is a Deputy Lieutenant for Kent and a Vice President of Demelza Hospice Care for Children, where he served as a trustee for more than a decade. He also founded Lorenden Preparatory School and helped establish the Isle of Sheppey Academy.

Tony rose to the ranks of Brigadier in the British Army. Now retired, he has spent many years as a trustee of RBLI. He is also currently President of The Royal British Legion Village Branch at Aylesford.

Nadra is a Deputy Lieutenant for Kent and is Chairman of the National Care Association. In 2006, she gained an OBE for her work in social care over 30 years. She is also Vice President of Hi Kent and Vice President of the Kent Care Homes Association.

KATE BOSLEY

DAVID MONTGOMERY

BLAIR GULLAND

Kate’s extensive experience in the care industry has been gained through her time working for the Heart of Kent Hospice. In 1991 Kate was a clinical manager and then progressed to Chief Executive in 2007. Kate joined the Board of Trustees at RBLI in 2010 and also volunteers for the charity.

David rose to the ranks of Brigadier in the British Army before becoming COO of international Executive Search firm, Hanover Matrix. He then founded the Benchmark Search Group in 2002, which helps senior Service personnel transition into successful civilian careers.

Blair is Chairman and Partner at Gulland Solicitors and has been a practicing solicitor for over 40 years. He is also a Trustee of many other charities including Benenden Almhouse Charities, the Michael Yoakley Charity and the Kent Community Foundation.

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SENIOR MANAGEMENT TEAM STEVE SHERRY CMG OBE CHIEF EXECUTIVE

Brigadier Steve Sherry has been Chief Executive of RBLI since April 2010. With a MBA and MSc in Strategic Studies as well as a wealth of experience in implementing change in many differing environments, including Pakistan and the Czech Republic, Steve is enjoying leading RBLI at a time of significant growth, innovation and modernisation.

STEVE WOODWARD

DIRECTOR OF EMPLOYMENT SOLUTIONS Steve joined RBLI in February 2017 having previously worked for Twin Group International where he held the role of Group Chief Operating Officer. Steve has an MBA and has also held director roles with Working Links and Lifeline projects. Prior to this Steve had a retail career spanning in excess of 25 years with ASDA, Sainsburys, B&Q and latterly Dixons Stores Group where he held various senior operational and commercial roles.

JAMES RUDONI

DIRECTOR OF RBLI LIVING James Rudoni has 25 years of operational and commercial management experience in the charity and heritage sector. Prior to joining RBLI in 2014 as Director of RBLI Living, James was the Director of Gardens for the Royal Horticultural Society. His other senior management roles include The Science Museum, the British Film Institute and being a founder member of international start-up business Science and Media LLP.

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PHIL DEFRAINE

DIRECTOR OF CORPORATE SERVICES Phil Defraine is a CIMA qualified accountant. Having originally worked as a trainee 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.

LISA FARMER

DIRECTOR OF STRATEGIC DEVELOPMENT Lisa Farmer joined RBLI in October 2015 as Director of Strategic Development with 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.

GEOFF STREETLEY

DIRECTOR OF BRITAIN’S BRAVEST MANUFACTURING COMPANY Geoff Streetley joined RBLI in November 2012 as Head of Commercial and is now 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 the UK and internationally and has significant experience of dealing with both public and private sector organisations globally.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2017

The trustees are pleased to present their annual directors' report together with the consolidated financial statements of the charity for the year ending 31 March 2017 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes. The charity registration number is 0210063. The charity is also a limited company registration number 0158479. 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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

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Steve Acland, one of the Britain’s Bravest Manufacturing Company team, providing fulfilment services to companies across the UK including Wickes

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OBJECTIVES AND ACTIVITIES The primary objectives of the charity are to support people with disabilities, health conditions or other social disadvantages to develop independence through the following main activities:

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

2

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

3

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

BRITAIN’S BRAVEST MANUFACTURING COMPANY IS THE FASTEST GROWING ROAD SIGNS COMPANIES IN THE COUNTRY AND RECENTLY WON THE PRESTIGIOUS NATIONAL NETWORK RAIL TENDER TO BECOME THEIR SOLE SUPPLIER OF LINESIDE SIGNAGE. 60% OF STAFF HAVE A DISABILITY.

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THE CHARITY ACHIEVES ITS PURPOSE AND OBJECTIVES VIA THE FOLLOWING ACTIVITIES AND SERVICES: PROVIDING CARE Delivering an integrated and comprehensive suite of care, accommodation and employment services and facilities on the RBL Village in Aylesford, with a clear focus on supporting veterans and their families.

CHAMPIONING DISABILITY Delivering supported employment for individuals with disabilities and health conditions from the Armed Forces and wider community t h ro u g h o u r m a n u f a c t u r i n g social enterprise, Britain’s Bravest Manufacturing Company.

EMPLOYMENT SERVICES Delivery of the Government funded Work Programme across a large part of Kent and Sussex (this programme is currently delivered by RBLI as a sub-contractor to G4S on behalf of the Department of Work and Pensions).

The Board of Trustees review the charity’s strategic goals, activities and performance throughout the year and have considered the Charity Commission’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.

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ACCESS TO WORK

CAREER DEVELOPMENT

The provision of disability assessment services via our Access to Work Programme, delivered for the Department of Work and Pensions.

The design, development and ongoing delivery of RBLI’s innovative vocational assessment and development activities for the serving and veteran service community (via our LifeWorks courses for veterans, spouses of serving personnel, and now veterans in custody as well as vocational assessments for wounded, injured and sick serving personnel as part of the Right Management Career Transition Partnership with the MOD).

CONTINUOUS IMPROVEMENT Creating innovative new projects, products and outreach services to meet our objectives, and meet the needs of our beneficiaries more effectively and efficiently.

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ACHIEVEMENTS AND PERFOMANCE

LIFEWORKS WAS RECOGNISED 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.

ACCOMODATION

TRAINING AND VOCATIONAL ASSESSMENT SERVICES

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 the accommodation provided, the charity provides a full range of welfare, health and wellbeing services on the village, including our highly successful tea room and community hub, Base Camp.

Our training and vocational assessment services to the veteran and serving Armed Forces continue to excel. LifeWorks, our flagship programme, was recognised 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.

We are experiencing more and more demand for accommodation and care from the veteran community, and through a combination of RBLI match funding with Libor grants and also donations, we have developed 24 new apartments. The first residents moved in during June 2017.

The report findings were launched at an event held at the Houses of Parliament and was supported by a range of MPs and a broad group of representatives from across the armed forces charity sector.

We have also received Libor funding from the Treasury to develop a much needed new 12 bed extra-care and day-care facility that will be complete in 2018.

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During the year, the programme was delivered nationally across the country and internationally at armed forces garrisons.

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MANUFACTURING

EMPLOYMENT SOLUTIONS

We restructured our manufacturing division last year and rebranded the area as Britain’s Bravest Manufacturing Company in recognition of the large number of employees that are either service veterans or disabled employees facing significant challenges in the workplace.

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 and as we approach the final year of customer referrals we are very pleased to have helped more than 15,000 long term unemployed seek work, of whom nearly 6000 have secured long-term sustained employment over the course of the contract.

During the year the division performed very well, with a significant improvement in turnover and financial performance. This division employed more than 100 staff, 60% of them with a disability, at our factories at Aylesford and Leatherhead. Not only one of the fastest growing road signs companies in the country, it also won the prestigious national Network Rail Tender to become their sole supplier of lineside signage. We are proud to be working with Network Rail delivering quality products and social value.

During the year we also won a number of new contracts in the sector including programmes funded by Big Lottery and the European Social Fund (ESF), and are also working in partnership with Reed Employment on their welfare to work programmes funded by DWP and ESF. We have continued to provide over 4000 in-work assessments per annum on the Access to Work contract across the south of England. At the end of the year RBLI was awarded a 5 year contract to deliver Access to Work Assessments across the nation and are now a national prime provider for the Department of Work and Pensions helping more than 9000 disabled people every year.

BRITAIN’S BRAVEST MANUFACTURING COMPANY IS THE FASTEST GROWING ROAD SIGNS COMPANIES IN THE COUNTRY AND RECENTLY WON THE PRESTIGIOUS NATIONAL NETWORK RAIL TENDER TO BECOME THEIR SOLE SUPPLIER OF LINESIDE SIGNAGE. 60% OF STAFF HAVE A DISABILITY.

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FINANCIAL REVIEW

DONATIONS AT £2.4M REFLECT A HIGHLY SUCCESSFUL YEAR FOR OUR FUNDRAISING ACTIVITY.

INCOME

EXPENDITURE

During the year the charity generated income of £17.2m (2016 £17.4m).

Total expenditure for the year was £16.7m (2016 £15.6m), with the increase reflecting the cost of fundraising and higher costs to support income growth in the manufacturing division.

Donations at £2.4m reflect a highly successful year for our fundraising activity. Our Employment Solutions division were down just over £500k year on year reflecting the reduced revenues in the final year of the Work Programme. RBLI Living, our care and accommodation division, was down just under £200k year on year with our care home being below optimum occupancy during the year. Manufacturing had it’s best year ever with income of more than £5.8m.

MANUFACTURING HAD IT’S BEST YEAR EVER WITH INCOME OF MORE THAN £5.8M.

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Operating divisions produced a net expenditure of £1.5m overall. This deficit was planned as part of the ongoing investment in the charity’s strategic investment plan. Our investment fund increased in value by £1.1m in year, and therefore the net income/expenditure for the year was £1.7m. All divisions of the charity achieved a good level of performance and the charity bettered its full year budget and plan. In addition to the above, the 2017 financial statements include a £1.1m actuarial loss on the defined pension benefit scheme and therefore the net movement in funds for the year equates to £596k and the charity ends the year with funds of £21.2m, an increase of 2.9% year on year. The charity’s balance sheet has strengthened over the year. At the end of the year cash remains strong, reflecting the funds set aside for the Veterans Apartments and the new care facility being developed.

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INVESTMENT POWERS AND POLICY

RESERVE POLICY

Investment powers are governed by the Memorandum and Articles of 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 fund managers’ remit.

The reserve policy, reviewed annually by trustees, is to hold a sum of money as a designated fund in two parts as follows:

The charity’s investments are held to achieve balanced long term growth and a level of investment income each 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 better than target and benchmark.

An operating reserve equating to approximately four months working cash flow; A reserve equating to the forecast cost to RBLI for planned future projects and developments, primarily accommodation and care facilities at Aylesford.

The Board reviews fund performance at every board meeting. Management meet with our investment managers quarterly and the investment managers present and report to the board on an annual basis.

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RESERVES

GOING CONCERN

Unrestricted funds totalled £16.6m (2016: £17.7m).

The trustees have reviewed the future plans for the charity, and the strength of the balance sheet and future funds already secured, and are confident that the charity will remain a going concern for many years to come.

The operating reserve in a designated fund equates to £5m. The development reserve in a designated fund stands at £5m, of which £1m is for the matched funded veterans’ accommodation project, £1m for care services and £2m towards the development of the Centenary Village. The pension deficit reserve calculated as per FRS102 is £3.9m. The general fund of £9.7m reflects the infrastructure and tangible fixed assets used by the charity to support our beneficiaries in Aylesford and Leatherhead. Restricted Funds totalled £4.6m (2016: £2.9m). In addition to the above, the unrestricted fund also includes a sum covering the investment fair value reserve which equates to the difference 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. Although a professional valuation of land has not been done, 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.

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PENSION LIABILITY The charity is a member of a multi-employer pension scheme with the Royal British Legion and the Poppy Factory. The scheme is a defined benefit scheme. This scheme was closed to new entrants in 2009, but members are still accruing benefits. The scheme has a pension deficit, largely due to historic funding not achieving predicted returns required to ensure the scheme assets fully cover the liability. RBLI’s share of the deficit is £3.9m or approximately 15% of the total deficit as determined by our actuaries as part of the FRS102 Pension Liability Report We have an agreed recovery plan with the Pension Scheme Trustees to fund the deficit over a five-year period. The plan allows for a scrutinised charge over the charity’s assets rather than a cash recovery plan. However, the recovery plan allows for a revision to the methodology subject to the future size of the scheme assets versus liabilities.

2016/2017 ANNUAL ACCOUNTS


PLANS FOR THE FUTURE

BOARD OF TRUSTEES

Plans for the future are covered in the Strategic Report

The Board of Trustees are responsible for the overall governance, policy and work of the charity. The Members of Royal British Legion Industries (RBLI) can appoint up to a maximum of 12 trustees for the year from one Annual General Meeting to the next. If a vacancy arises, the trustees can co-opt a Member to fill a vacancy at any time.

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 a Memorandum and 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 69.

Newly elected trustees are given induction training on their duties as Members of the Board and on their responsibilities as trustees. In addition, they receive a copy of the charity’s Memorandum and Articles of Association, a copy of its latest reports and financial statements, details of the senior executives and their respective roles, and details of future board meetings. The Board governs the charity within its Memorandum and Articles of Association and in line with its mission, charitable objectives and values. The Board provides overall policy direction and the management of the charity is delegated to the Chief Executive and through him to the senior management team. The Board meets quarterly and papers are made available prior to board meetings including business plans and budgets. Summary management accounts are reviewed by the trustees at each Board meeting. The trustees confirm that reference has been made to the guidance contained in the Charity Commission’s guidance on public benefit of the Charities Act 2011, when reviewing the charity’s aims and objectives and in planning future activities. The trustees and senior executives are involved in the strategic planning and their recommendations are then considered by the Board. Estates development matters are considered and reviewed by the Estates Development Committee which is chaired by a trustee and its recommendations are submitted to the Board of Trustees for its approval.

I FEEL UTTERLY OVERWHELMED WITH WHAT A DIFFERENCE THREE DAYS WITH LIFEWORKS HAS MADE TO ME... LIFE CHANGING!” Emma, military spouse, supported by the Lifeworks Families team

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35


At the House of Lords for RBLI’s Ladies’ Lunch in March discussing the disability employment gap.

STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees (who are also directors of Royal British Legion Industries for the purposes of company law) are responsible for preparing the trustees’ Report and the financial statements in accordance with applicable law and regulation. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: • select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2015); 36

• make judgements and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

2016/2017 ANNUAL ACCOUNTS


PAY POLICY

RISK MANAGEMENT

The Board of Trustees approve any relevant annual pay rise to all employees with the Senior Management Team receiving the same annual increase as all other employees.

The charity operates a risk reporting matrix that is reviewed by the Board of Trustees at every Board meeting. The 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.

When new members join the Senior Management Team, the Chairman or Vice-Chairman of the Board of Trustees are asked to approve relevant salaries and other compensation/rewards.

Out of cycle pay rises not covered by 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. Where appropriate, staff with revenue targets benefit from a bonus system that rewards good performance. All staff are encouraged to join the current pension scheme which is a defined contribution scheme. The charity contributes to the scheme and the contribution is determined by the individual employee contribution level.

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37


PRINCIPLE RISKS AND UNCERTAINTIES The major risks that could negatively and materially impact the charity in the medium and long term are as follows: • The Government removes the Supported Factory Grant used to support disabled employees in Britain’s Bravest Manufacturing Company. The grant provides help and support for those employees with the most profound disabilities at both Aylesford and Leatherhead.

S TAT E M E N T O F D I S C L O S U R E O F INFORMATION TO AUDITORS Insofar as the trustees are aware: • there is no relevant audit information of which the charitable 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.

• 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.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

DIRECTORS’ INDEMNITIES

INDEPENDENT AUDITORS

As permitted by the Articles of Association, the directors/ trustees have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The charity also purchased and maintained throughout the financial year directors’ and officers’ liabilities insurance in respect of itself and its directors/trustees.

A resolution proposing that PricewaterhouseCoopers LLP be reappointed as auditors of the Charity will be put to the Board at the Annual General Meeting.

Approved by the Board and signed by its order by

Frank Martin VICE CHAIRMAN 29th June 2017

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2016/2017 ANNUAL ACCOUNTS


Peter, a resident at our assisted living scheme, Queen Elizabeth Court, enjoying one of the regular coffee mornings.

2016/2017 ANNUAL ACCOUNTS

39


STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2017

40

2016/2017 ANNUAL ACCOUNTS


BUSINESS REVIEW During the year, the charity performed well overall with all divisions achieving their nonfinancial targets and significant growth in our manufacturing and Armed Forces programmes. Financially all divisions apart from Employment Solutions performed better than budget. Employment activity was impacted by the much reduced participant referrals on the Work Programme. However, the division still produced a financial surplus in the year.

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41


STRATEGIC REPORT FUTURE PLANS The Charity has successfully delivered on its first two years of our ten-year strategy ‘Improving Lives Every Day’. The new structure is effectively embedded and is over achieving on our four themes:

INVESTMENT

INNOVATION

Our Village development plans reflect the exceptional quality of this year’s provision of 24 apartments for veterans and their families.

RBLI plans to build even more single person apartments, as well as family housing and assisted living facilities, to meet the most pressing needs in the military community.

We were very proud to host a visit from Sir Keith Mills, founder of The Invictus Games, and in celebration of the spirit of the games we have named the new buildings Invictus Games House and Victory House. These stunning and robust homes give vulnerable veterans a start to a new and more positive future and they are the first step in a much larger development.

The Centenary Village (Phase Two) will create a further 65 units with a diverse mix of family, single and assisted living accommodation with a community centre and village green at its heart. This expansion will commence in our centenary year 2019.

The completion of the day care centre and care suites in 2018 will see the conclusion of what is, in fact, phase one in a larger £20m Village expansion.

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INFLUENCE

INSPIRE

We have an exciting new Development Board working alongside the Board of Trustees committed to delivering these much needed services and creating a Village that can be here for our veterans for the next 100 years.

Our social enterprise, Britain’s Bravest Manufacturing Co., plans to build on its successful growth by continuing to offer more employment opportunities to veterans and people from the wider community with disabilities. We are expanding the apprenticeship opportunities offered to workers.

We are already in dialogue with all the service charities to ensure all our new services and facilities are integrated, and we believe that impactful projects such as the Centenary Village can be a demonstrable example of how well military charities combine forces for the benefit of veterans and their families.

Product innovation continues apace and we have exciting plans to sell directly to the consumer on some product ranges. This September will see a decision on a major collaborative initiative creating a new social enterprise in Glasgow: Scotland’s Bravest Manufacturing Co.

2016/2017 ANNUAL ACCOUNTS

43


On the back of the outstanding outcomes achieved by our LifeWorks programme, as validated by the independent evaluation in 2016, we remain committed to supporting veterans and families across the whole of the UK in finding independence through employment and training. We will continue to collaborate with the MOD, The Royal British Legion, our key partners Poppy Scotland, the Covenant Fund, and the Department of Work and Pensions to ensure that LifeWorks is reaching more veterans in their hour of need. We remain committed to playing our part in tackling the UK’s disability employment gap which we believe is indefensible and unnecessary. We have been honoured to have been working with Baroness Sal Brinton, a life-long disability campaigner and activist, to promote LifeWorks and Britain’s Bravest Manufacturing Company in both Houses. We are being strongly encouraged to consider ways in which LifeWorks can be rolled out to the wider community and this will include further developing our superb range of assessment capabilities, coupled with our integrated employment and skills services. Our national reach already ensures we support considerably more than 10,000 people annually, and we are developing an innovative new web app which could help us reach dramatically more than this in the future. Our strategic intent remains one of reaching more beneficiaries through growth, national reach, innovation, investment, inspirational leadership and influence. This is being achieved by our wonderful staff and through open and collaborative working with other charities, Government and commercial organisations. As we approach our exciting Centenary year, 2019, we hope that many more partners will choose to get involved with RBLI, as we seek to deliver our ambitious plans for those who have served and sacrificed.

Frank Martin VICE CHAIRMAN 29th June 2017

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WE REMAIN COMMITTED TO PLAYING OUR PART IN TACKLING THE UK’S DISABILITY EMPLOYMENT GAP WHICH WE BELIEVE IS INDEFENSIBLE AND UNNECESSARY.

WE HAVE BEEN HONOURED TO HAVE BEEN WORKING WITH BARONESS SAL BRINTON, A LIFE-LONG DISABILITY CAMPAIGNER AND ACTIVIST, TO PROMOTE LIFEWORKS AND BRITAIN’S BRAVEST MANUFACTURING COMPANY IN BOTH HOUSES. WE ARE BEING STRONGLY ENCOURAGED TO CONSIDER WAYS IN WHICH LIFEWORKS CAN BE ROLLED OUT TO THE WIDER COMMUNITY. 2016/2017 ANNUAL ACCOUNTS

45


INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 MARCH 2017

Members of our property services team working hard to maintain our 70-acre village site in Kent

46

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2016/2017 ANNUAL ACCOUNTS

47


INDEPENDENT AUDITORS REPORT REPORT ON THE FINANCIAL OPINION ON OTHER STATEMENTS MATTER PRESCRIBED BY THE COMPANIES ACT 2006 OUR OPINION In our opinion, Royal British Legion Industries Limited’s financial statements (the financial statements”):

In our opinion, based on the work undertaken in the course of the audit;

• give a true and fair view of the state of the charitable company’s affairs as at 31 March 2017 and of its incoming resources and application of resources, including its income and expenditure and cash flows for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.

• the information given in the Report of the Trustees, including the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the Strategic Report and the Report of the Trustees have been prepared in accordance with applicable legal requirements. In addition, in light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Strategic Report and the Report of the Trustees. We have nothing to report in this respect.

WHAT WE HAVE AUDITED The financial statements, included within the Trustees’ Report and Financial Statements (the “Annual Report”), comprise: • the balance sheet as at 31 March 2017; • the statement of financial activities (incorporating the summary income and expenditure account) for the year then ended; • the statement of cash flows for the year then ended; and • the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information. The financial reporting framework that has been applied in the preparation of the financial statements is United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events. 48

OTHER MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Adequacy of accounting records and information and explanations received Under the Companies Act 2006, we are required to report to you if, in our opinion: • we have not received all the information and explanations we require for our audit; or • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility.

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TRUSTEES REMUNERATION Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of trustee’s remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT Our responsibilities and those of the trustees. As explained more fully in the Statement of Trustees Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) (“ISA’s (UK and Ireland)”). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the charity’s members and trustees as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions accept or assume responsibility for any other purpose to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

WHAT AN AUDIT OF FINANCIAL STATEMENTS INVOLVES

We primarily focus our work in these areas by assessing the trustees’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements. We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive or a combination of both. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. With respect to the Strategic Report and Report of the Trustees, we consider whether those reports include the disclosures required by applicable legal requirements.

Jill Halford SENIOR STATUTORY AUDITOR for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London

We conducted our audit in accordance with ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: • whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; • the reasonableness of significant accounting estimates made by the trustees; and • the overall presentation of the financial statements.

2016/2017 ANNUAL ACCOUNTS

49


STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2017

50

2016/2017 ANNUAL ACCOUNTS


2016/2017 ANNUAL ACCOUNTS

51


FINANCIALS STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE SUMMARY INCOME AND EXPENDITURE ACCOUNT) INCOME & EXPENDITURE

2017 Unrestricted Funds

2017 Restricted Funds

2017 Total Funds

2016 Restricted Funds reclassified £000’s

2016 Total Funds reclassified

£000’s

2016 Unrestricted Funds reclassified £000’s

£000’s

68

2,291

2,359

-

2,095

2,095

Employment Solutions

3,150

183

3,333

3,875

-

3,875

Britain’s Bravest Manufacturing

5,512

305

5,817

5,181

330

5,511

RBLI Living

4,577

895

5,472

5,027

615

5,642

Total Charitable Activities

13,239

1,383

14,622

14,083

945

15,028

264

-

264

287

-

287

13,571

3,674

17,245

14,370

3,040

17,410

442

135

577

398

-

398

Note

£000 ‘s

£000’s

INCOME FROM Donations Charitable Activities:

Investments

2

Total

EXPENDITURE ON: Raising Funds Charitable Activities:

-

Employment Solutions

3,253

128

3,381

3,357

-

3,357

Britain’s Bravest Manufacturing

6,571

316

6,887

5,916

340

6,256

RBLI Living

4,463

1,394

5,857

5,000

587

5,587

14,729

1,973

16,702

14,671

927

15,598

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

3

( 1,158 )

1,701

543

( 301 )

2,113

1,812

Gains/(losses) on investments assets

6

1,123

-

1,123

( 378 )

-

( 378 )

( 35 )

1,701

1,666

( 679 )

2,113

1,434

( 1,070 )

-

( 1,070 )

( 51 )

-

( 51 )

( 1,105 )

1,701

596

( 730 )

2,113

1,383

17,686

2,878

20,564

18,416

765

19,181

16,581

4,579

21,160

17,686

2,878

20,564

Net (Expenditure)/Income

OTHER RECOGNISED GAINS AND LOSSES Actuarial Loss on defined benefit pension scheme

14

Net movement in funds

Fund balances brought forward at 1st April Fund balances carried forward at 31st March

12

The reclassification of prior year reflects the change in analysis of veterans programs between Employment Solutions and RBLI Living. The reclassification also includes a redesignation of some monies from grants to donations.

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2016/2017 ANNUAL ACCOUNTS


BALANCE SHEET AT 31 MARCH 2017 BALANCE SHEET

2017

2016

Note

£000s

£000s

Tangible assets

5

12,904

10,255

Investments

6

7,085

8,031

Investment in subsidiary

7

-

-

19,989

18,286

FIXED ASSETS

Total Fixed Assets

CURRENT ASSETS Stocks and work in progress

8

315

315

Debtors

9

2,059

1,706

Cash at bank and in hand

5,796

5,749

Total Current Assets

8,170

7,770

( 3,143 )

( 2,824 )

( 3,143 )

( 2,824 )

Net current assets

5,027

4,946

Total assets less current liabilities

25,016

23,232

Net assets (excluding pension scheme liability)

25,016

23,232

14

( 3,856 )

( 2,668 )

12,13

21,160

20,564

Unrestricted - Designated

13

10,000

10,000

Unrestricted - General

13

9,676

10,238

Fair Value Reserve

13

761

116

20,437

20,354

( 3,856 )

( 2,668 )

16,581

17,686

4,579

2,878

21,160

20,564

CURRENT LIABILITIES Creditors – amounts falling due within one year

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

10

THE FUNDS OF THE CHARITY

Pension Reserve

13

Total Unrestricted Income Funds Restricted Income Funds TOTAL CHARITY FUNDS

12,13

The notes on pages 55 to 56 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 29th June 2017 and were signed on its behalf by:-

Mr Frank Martin

Mr A B Gulland

2016/2017 ANNUAL ACCOUNTS

53


FINANCIALS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2017 CASH FLOWS

2017 Note

Net cash inflow from operating activities

£000s

2016 £000s

£000s

1,093

20

£000s 1,783

INVESTMENTS Investment dividends received

264

Net cash inflow from investments

287 264

287

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Payments to acquire tangible fixed assets Receipts from the sale of Investments

( 3,310 )

( 653 )

2,000

-

Net cash outflow from capital expenditure & financial investment Net cash inflow before financing

( 1,310 )

( 653 )

47

1,417

FINANCING ACTIVITIES Libor grant income deferred Reduction in borrowings Net cash outflow from financing

-

( 3,000 ) -

( 3,000 )

47

( 1,583 )

Balance brought Forward

5,749

7,332

Balance Carried Forward at 31 March

5,796

5,749

Increase / (reduction) in net cash

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017 1. ACCOUNTING POLICIES Going Concern

Income Recognition

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.

Charitable activity income is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed and value added taxes.

Basis of Accounting

Donations are recognised as income when received or when entitlement to receive has been established, receipt is probable, and the amount can be quantified with reasonable accuracy. Gift Aid receivable is included when claimable.

The Financial Statements have been prepared in accordance with the charities SORP, FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable UK charity and company law. The principal accounting policies applied in the preparation of these financial statements are set out below. 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.

Consolidation The company has a wholly-owned subsidiary company, RBLI Contracts Limited. Consolidated financial statements have not been prepared as the activities of the subsidiary are not material to the group. Information concerning the subsidiary is set out in note 7.

Funds The charity maintains the following funds:•

Restricted - where the purpose to which the funds may be used has been restricted by the donors

Unrestricted - where the fund is not restricted as to its use

Designated - where the funds are unrestricted but the Trustees have designated them for a specific purpose

Funds have been set up and designated by the Board of Trustees and transfers between funds are agreed by the Trustees.

Grants Received Grants are recognised in the Statement of Financial Activities when the conditions for entitlement have been met. Grants received before the conditions for entitlement have been 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.

Pensions The Charity operates two pension schemes, the Defined Benefit Scheme which was closed to new entrants in 2009 and the Group Personal Pension Scheme. The Defined Benefits scheme, the assets of which are held and managed separately, is a multi-employer scheme. 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 £1,070,000 and a deficit on the balance sheet of £3,856,000. For the defined benefit section the amounts charged in expenditure are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised 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 Scheme is funded, with the assets of the scheme held separately from those of the underlying employers, in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of the related deferred tax is presented separately after other net assets on the face of the balance sheet.

Short-term benefits Short-term benefits, including holiday pay, termination payments and other similar nonmonetary benefits, are recognised as an expense in the period in which the service is received.

Taxation

The company is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Investments Investments are stated at fair value and the value of both realised and unrealised gains are included in the Statement of Financial Activities within the relevant Funds. Investments are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the year in which it occurs.

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55


FINANCIALS 1. ACCOUNTING POLICIES (continued) Charitable Expenditure

Assets Under Construction

Financial Instruments

Costs are recognised on an accruals basis in the period in which they are incurred. Expenditure on raising funds includes the costs incurred in raising donation income and grant income, including apportioned support costs. Expenditure on charitable activities comprises the costs incurred on charitable activities including apportioned support costs. Where support costs cover more than one area of activity the costs are allocated to each activity based on revenue.

Assets under construction represents expenditure incurred in creating assets. Depreciation takes place only after completion and capitalisation.

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Limitation of Capitalisation

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price. At the end of each reporting period financial assets are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the estimated cash flows. The impairment loss is recognised in profit or loss.

Expenditure below £1,000 per item does not qualify for capitalisation as a Fixed Asset as it is not considered to be material.

Costs of expenditure on raising funds includes the fees incurred in managing the Charities Financial Risk Management investments. The Charity’s operations expose it to some financial risks that include the effects of changes Operating Leases in market interest rates and its liquidity position. The Charity has in place a risk management Annual rentals under operating leases are charged against income on a straight line basis over the programme that seeks to limit adverse effects on the financial performance of the Charity. 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 proportion of works overheads appropriate to each department. Cost is determined on an average cost method. Cost includes the purchase price including transport and handling 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 straight-line method, to allocate the depreciable amount to their residual values over their estimated useful lives, as follows:

Critical accounting estimates and assumptions The charity makes estimates and 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.

Stock provisioning

At each balance sheet date the charity considers the recoverability of the cost 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.

Freehold buildings - 2% straight-line

Buildings plant - 7% straight-line

Plant, Machinery, Fixtures and Fittings 15% straight-line

Defined benefit pension scheme

Motor vehicles - 25% straight-line

Office equipment - 33% straightline

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.

An annual impairment review is undertaken and adjustments are made where the adjustment is material.

56

(i) Financial assets

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 profit or loss. Investments which are not subsidiaries are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in fair value reserve. Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party. (ii) Financial liabilities Basic financial liabilities include trade and other payables, and loans. They are initially recognised at transaction price. 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. Trade payables are recognised initially and subsequently measured at transaction price as all of them are current. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. (iii) Offsetting Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2016/2017 ANNUAL ACCOUNTS


2. INVESTMENTS 2017 £000s

2016 £000s

Investment dividends

238

270

Interest receivable

26

17

264

287

3. TOTAL EXPENDITURE Activities undertaken directly £000s

Support costs

2017 Total

2016 Total

£000s

£000s

£000s

543

34

577

398

Employment Solutions

2,953

428

3,381

3,357

Britain’s Bravest Manufacturing

6,058

829

6,887

6,256

RBLI Living

5,155

702

5,857

5,587

14,709

1,993

16,702

15,598

Raising Funds

Support Costs are detailed in the schedule below. Auditors’ remuneration was £44,670 for the 2017 audit (2016 : £43,368). In addition other advice was provided by PricewaterhouseCoopers LLP relating to taxation services - £6,320 (2016 : £6,384). Operating lease payments included in Resources Expended totalled £290,445 (2016 : £282,984). The profit on disposal of fixed assets was £NIL (2016 : £8,244).

SUPPORT COSTS

Employment Solutions

RBLI Living

Fundraising

2017 Total

£000s

Britain’s Bravest Manufacturing £000s

£000s

£000s

£000s

2016 Total restated £000s

Executive

51

100

85

4

240

245

Finance

113

219

186

9

527

517

Business Systems

78

150

127

6

361

348

Human Resources

74

144

122

6

346

325

Marketing

68

132

111

5

316

-

Business Support/Other

20

39

33

2

94

9

Pension Deficit

24

45

38

2

109

133

428

829

702

34

1,993

1,577

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.

2016/2017 ANNUAL ACCOUNTS

57


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

2017

2017

2016

2016

Number

FTE

Number

FTE

Employment Solutions

75

69

80

73

RBLI Living

153

120

164

128

Britain’s Bravest Manufacturing

111

92

118

100

Fundraising and Marketing

10

10

5

5

Executive & Corporate Services

22

21

26

24

371

312

393

330

STAFF COSTS (FOR THE ABOVE PERSONS)

2017 £000s

2016 £000s

Wages and salaries

7,086

6,893

Social Security costs

601

579

Other Pension costs

591

619

Other costs

17

18

FRS 102 adjustment in SOFA

163

133

8,458

8,242

During the year a total of 208 volunteers (2016: 49) worked for a total of 9,946 hours (2016: 3,601 hours)

During the year £46,929 expenditure was incurred on recruitment fees (2016: £88,246). 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 £

2017 Employees

2016 Employees

60,001 - 70,000

4

1

70,001 - 80,000

2

3

80,001 - 90,000

-

1

90,001 - 100,000

2

2

100,001 - 110,000

2

1

110,001 -120,000

1

-

130,001 -140,000

1

1

12

9

All the twelve employees earning over £60,000 p.a. participated in the company pension scheme, and pension contributions of £89,119 were made by RBLI in the year to 31 March 2017 (2016: £65,465). The total remuneration of the above twelve key (prior year 9) management personnel was £1,069,873 (2016: £ 794,387). This includes severance pay of £53,000 (2016: £NIL) No remuneration is paid to the Trustees as they act on an honorary basis. Travel expenses were reimbursed to one Trustee (2016: 1) and amounted to £253 in the year (2016: £351). 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 £101,422 (2016: £99,692)

58

2016/2017 ANNUAL ACCOUNTS


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

12,431

1,486

1,184

1,174

Additions

20

-

67

Disposals

( 85 )

-

Transfers

-

Total

£000s

106

468

600

17,449

14

-

34

3,175

3,310

( 121 )

( 16 )

( 16 )

( 119 )

-

( 357 )

-

-

114

-

88

( 202 )

-

12,366

1,486

1,130

1,286

90

471

3,573

20,402

4,026

904

889

870

106

399

-

7,194

251

99

75

84

1

59

-

569

( 30 )

-

( 83 )

( 16 )

( 17 )

( 119 )

-

( 265 )

4,247

1,003

881

938

90

339

-

7,498

Net book value at 31st March 2017

8,119

483

249

348

-

132

3,573

12,904

Net book value at 31st March 2016

8,405

582

295

304

-

69

600

10,255

COST At 1st April 2016

At 31st March 2017 ACCUMULATED DEPRECIATION

Charge for year 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

2017

2016

£000s

£000s

Listed on UK Stock Exchange

1,847

1,996

UK Fixed Interest

1,784

1,559

Overseas Equities

2,301

2,879

Overseas Fixed Interest

413

699

Alternative Investments

280

446

Cash Reserve

460

452

Fair Value at 31 March 2016

7,085

8,031

Cost of Managed Investments at 31 March 2017

6,324

7,915

The difference between the fair value and the cost of investments is £761,000 (2016: £116,000) and represents the fair value reserve as required by the Companies Act 2006. There are no material investments, defined as those over 5% by value of the total portfolio.

2016/2017 ANNUAL ACCOUNTS

59


FINANCIALS 6. INVESTMENTS (continued) ANALYSIS OF MOVEMENTS OF INVESTMENTS

2017 £000s

2016 £000s

Valuation at 1 April 2016

8,031

8,487

Realised Gains/(Losses)

476

( 87 )

Unrealised Gains/(Losses)

647

( 291 )

( 2,000 )

-

less: Management Costs

( 69 )

( 78 )

Valuation at 31 March 2017

7,085

8,031

Withdrawals

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

7.

INVESTMENT IN SUBSIDIARY

The Company owns 100% of the issued share capital (being two shares of £1 each) of RBLI Contracts Ltd, a dormant company. There has been no income or expenditure in the subsidiary in the year (2016: none) and there are no capital and reserves at the year end (2016: none).

8.

STOCKS AND WORK IN PROGRESS 2017 £000s

2016 £000s

Raw materials

264

299

Finished goods

51

16

315

315

2017 £000s

2016 £000s

Trade debtors

1,314

966

Other debtors

206

2

Prepayments and accrued income

539

738

2,059

1,706

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 £ 2,660,363 (2016: £2,480,166).

9.

60

DEBTORS

2016/2017 ANNUAL ACCOUNTS


10.

CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR

AMOUNTS FALLING DUE WITHIN ONE YEAR:

2017

2016

£000s

£000s

Trade creditors

900

1,008

Other taxation and social security

334

318

Other creditors

69

77

1,762

1,396

78

25

3,143

2,824

Accruals Deferred Income

11.

LOAN FINANCE

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.

12.

FUND BALANCES CARRIED FORWARD AT 31ST MARCH Unrestricted £000s

Restricted £000s

Total £000s

Tangible assets

8,325

4,579

12,904

Investments

7,085

-

7,085

15,410

4,579

19,989

Net current assets

5,027

-

5,027

NET ASSETS (excluding pension scheme liability)

20,437

4,579

25,016

Defined benefit pension scheme (liability)

( 3,856 )

-

( 3,856 )

NET ASSETS (including pension scheme liability/asset)

16,581

4,579

21,160

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 (2016: £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.

2016/2017 ANNUAL ACCOUNTS

61


FINANCIALS 13.

ANALYSIS OF FUNDS (CONTINUED)

UNRESTRICTED FUNDS

Balance 2016 £000s

Income

Expenditure £000s

Gains and losses £000s

Balance 2017 £000s

£000s

Future Projects and Developments

5,000

-

-

-

5,000

Operating Cost Reserve

5,000

-

-

-

5,000

10,000

-

-

-

10,000

10,238

13,526

( 14,566 )

478

9,676

( 2,668 )

45

( 163 )

( 1,070 )

( 3,856 )

116

-

-

645

761

17,686

13,571

( 14,729 )

53

16,581

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 2016 £000s

Income

Expenditure

£000s

£000s

Balance 2017 £000s

928

2,195

( 1,609 )

1,514

Libor MOD Grants

1,950

1,479

( 364 )

3,065

Total Restricted Funds

2,878

3,674

( 1,973 )

4,579

Capital and Revenue Grants

EXPLANATION The £2,950k Libor Grant is helping to fund two capital developments on the RBLI Village at Aylesford. This includes the building of 24 apartments for Veterans and the development of a new 12 bedroom care facility and day care centre. In addition to this capital spend £479k of the above grant is to support the delivery of the LifeWorks Programme.

62

2016/2017 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. Contributions to the Group Personal Pension Plan in the year were £379,000 (2016 : £364,000). Contributions are limited to twice the level of the employees’ contribution. There were 310 employees participating in the scheme at March 2017 (2016 : 299). The Defined Benefit Scheme was closed to future benefit accrual on 31 March 2010. During the year no contributions were made by RBLI (2016 : £NIL) under the agreed five-year plan to eliminate the deficit on the scheme. The most recent formal scheme published actuarial valuation was carried out by First Actuarial LLP as at 1 April 2014. The next triennial valuation commenced as at 1 April 2017, with results expected later in summer 2017. The major financial assumptions used by the actuary for FRS102 purposes were: ACTUARIAL ASSUMPTIONS

2017

2016

Discount rate (%p.a.)

2.70%

3.40%

Retail Price Inflation (%p.a.)

3.30%

3.00%

Consumer Price Inflation (%p.a.)

2.30%

2.00%

Salary increase rate (%p.a.)

3.30%

3.00%

5%p.a. or retail price inflation if less

3.20%

2.90%

3%p.a. or retail price inflation if less

2.00%

1.80%

Rate of increase for deferred pensioners

2.30%

2.00%

Current pensioners Men

88.8

89.0

Current pensioners Women

91.1

91.5

Future pensioners now aged 45 Men

90.2

90.7

Future pensioners now aged 45 Women

92.6

93.5

FAIR VALUE OF FUND ASSETS

2017 £000s

2016 £000s

Equities

3,291

2,806

Bonds

4,168

3,923

Gilts

2,898

2,517

Other Growth Seeking assets

3,393

3,355

Cash

190

242

Total

13,940

12,843

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.

2016/2017 ANNUAL ACCOUNTS

63


FINANCIALS 14.

PENSION SCHEME (CONTINUED)

TOTAL COST RECOGNISED AS AN EXPENSE:

2017 £000s

2016 £000s

Administration expenses

72

52

Net Interest

91

81

Total cost recognised as an expense:

163

133

RECONCILIATION OF SCHEME ASSETS AND LIABILITIES

£000s Assets

£000s Liabilities

£000s Total

At 1 April 2016

12,843

( 15,511 )

( 2,668 )

Benefits paid

( 469 )

469

-

Employer contributions

45

-

45

Administration expenses

( 72 )

-

( 72 )

428

( 519 )

( 91 )

-

( 2,235 )

( 2,235 )

1,165

-

1,165

13,940

( 17,796 )

( 3,856 )

Past service cost Interest income/(expense) remeasurement gains/(losses) - Actuarial losses - Return on plan assets excluding interest income At 31 March 2017

64

2016/2017 ANNUAL ACCOUNTS


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.

2017 £000s

2016 £000s

3,162

4,114

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

2017 £000s

2016 £000s

Payments due not later than one year

241

148

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

306

150

Total operating leases

547

298

18.

RELATED PARTY TRANSACTIONS

During the year payments of £1,500 (2016: £3,920) were made to ERSA UK Ltd and £3,052 (2016: £4,830) to The Institute of Employability Professionals. Richard Brooks, a member of RBLI senior management team, was on the board of these organisations until XXX 2016. A donation of £10,000 was received from the Kent Community Foundation in 2016. Blair Gulland, a Trustee of RBLI, is also a Trustee of Kent Community Foundation. No donation has been received in 2017.

2016/2017 ANNUAL ACCOUNTS

65


FINANCIALS 19.

GRANTS AND DONATIONS

Donations and Grants of £5,000 or more, received in either curent or prior year, are shown below. These are reported in the Statement of Financial Activites either under Charitable activities or under income from donations. 2017 £

2016 £

1,479,000

1,950,000

Workchoice employee support grant

323,673

322,161

The Morrisons Foundation

293,360

-

MOD Armed Forces Covenant

281,000

-

The Royal British Legion

173,950

155,850

MOD acting on behalf of Her Majesty’s Treasury

BBO Grant

177,780

-

ABF The Soldiers’ Charity

229,400

117,450

-

61,250

75,000

-

The Royal Navy & Royal Marines Charity Garfield Weston Foundation Greenwich Hospital

67,422

-

The Chelsea Barracks Foundation

50,000

-

Walking With The Wounded

50,000

50,000

Peoples Millions

-

40,000

Big Lottery Fund

-

22,500

Rank Foundation

-

31,772

Annington Homes

-

25,000

UFI Charitable Trust

20,997

-

Queen Mary’s Roehampton Trust

20,000

14,000

The Swire Charitable Trust

20,000

-

Forces In Mind Trust

18,350

36,250

The Army Central Fund

15,000

-

Centor

14,050

-

Poppy Scotland

10,899

18,228

Sir John Fisher Foundation

11,400

Blind Veterans

10,100

10,100

The Barbour Foundation

10,000

-

-

10,000

Weston Homes Kent Community Foundation

-

10,000

Groundwork UK

9,000

-

CHK Charities

5,000

-

The Forces Trust

5,000

-

Santander Community Scheme

5,000

-

BAE Systems

5,000

-

The Liz & Terry Bramall Foundation

5,000

-

Parachute Regiment

1,525

24,400

The Officers Association

1,525

7,625

3,377,031

2,917,986

66

2016/2017 ANNUAL ACCOUNTS


20.

NET CASH INFLOW FROM OPERATING ACTIVITIES 2017 £000s

2016 £000s

1,666

1,434

( 1,123 )

378

Investment management fees deducted from fund

69

78

Difference between pension charge and cash contributions

118

133

( 264 )

( 287 )

569

561

Reversal of Impairment charges on tangible fixed assets

-

( 595 )

Loss on disposal of fixed assets

-

536

(Increase)/Decrease in stocks

-

( 45 )

(Increase)/Decrease in debtors

( 353 )

548

Increase/(Decrease) in creditors

411

( 958 )

1,093

1,783

2017

2016

£000s

£000s

Trade debtors

1,314

966

Others debtors

206

2

1,520

968

5,796

5,749

Trade creditors

900

1,008

Other creditors

69

77

969

1,085

Net income (Gains)/Losses on investment assets

Investment income Depreciation on tangible fixed assets

Net cash inflow from operating activities

21

FINANCIAL INSTRUMENTS

Financial assets: Financial assets measured at amortised costs

Cash at bank and in hand Financial liabilities measured at amortised costs:

2016/2017 ANNUAL ACCOUNTS

67


68

2016/2017 ANNUAL ACCOUNTS


LEGAL & ADMINISTRATIVE INFORMATION TRUSTEES Mr S W Kingsman DL Chairman Mr F Martin DL Vice Chairman Brigadier H H Kerr OBE Ms Kate Bosley MSc RGN RSCN Dip of Nursing The 6th Marquess of Abergavenny DL (resigned 29th September 2016) Mrs N Ahmed OBE DL Mr A B Gulland Mr J Smithers (resigned 29th September 2016) Mr D Montgomery (appointed 29th September 2016) Mr D Crampton DL (appointed 29th September 2016) SENIOR OFFICERS Mr S F Sherry CMG, OBE Chief Executive Mr P Defraine ACMA Director of Corporate Services & Co. Secretary Mr G Streetley Director of Britain’s Bravest Manufacturing Company Mr J Rudoni Director of Operational Delivery Mr R Brooks Director of Employment Solutions (resigned 15th December 2016)

COMPANY NUMBER: 0158479 REGISTERED CHARITY NUMBER: 0210063 HEAD OFFICE AND REGISTERED OFFICE Royal British Legion Industries Limited Hall Road, Aylesford, Kent ME20 7NL Tel: 01622 795900 Fax: 01622 882195 INDEPENDENT AUDITORS PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6R H BANKERS Barclays Bank Plc Corporate Banking Kent Team, 2nd Floor, 30 Tower View, Kings Hill, West Malling, Kent ME19 4UY INVESTMENT ADVISORS Julius Baer Portfolio Managers Ltd 1 St Martin’s Le Grand, London EC1A 1HQ

Sarasin & Partners LLP Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU

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

Brachers LLP 59 London Road, Maidstone, Kent ME16 8JH

Mrs L Farmer Director of Strategic Development Mr S Woodward Director of Employment Solutions (appointed 27th February 2017)

2016/2017 ANNUAL ACCOUNTS

69


70

RBLI CHARITY NUMBER 210063

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