The Trustees present their report and financial statements for the year ended 31 March 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The charitable company's objects are to help residents of Watford, Three Rivers and the surrounding areas who are in conditions of need, hardship or distress by the provision of furniture and accessories and to provide vocational training, support and work experience for those who volunteer at the scheme.
The charity aims to achieve these objectives by:
Collecting good quantity, donated furniture and other household effects which are no longer required by the owners and would otherwise be destined for landfill.
Displaying furniture and household effects so that people in need can choose from these and have them delivered to their home if desired.
Recruiting and supporting unemployed volunteers, specifically, but not exclusively, people recovering from mental health problems or who have a learning disability. The volunteers are offered training to enable them to gain confidence and learn skills that will prepare them for work.
We manage the work of the charity as two complementary activities – the furniture recycling showroom (and associated collection and delivery service) and the provision of training courses and work experience. The objectives for each activity for this year were:
Furniture Recycling:
Increase sales to achieve the aim of making the furniture recycling business self-financing
Maintain subsidised sales (50%) for those in need at current levels
Training Courses and Work Experience:
Train students in furniture restoration
Maintain volunteer programme to fill driver’s mate and showroom assistant positions
Assist 5 students and volunteers to move into further employment or volunteering roles
Raise grant income to cover the cost of the courses
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.
The Trustees have considered the Charity Commission guidance on public benefit. The charity relies on grants and income from furniture sales to cover its operational costs. In setting the level of charges for furniture the Trustees give careful consideration to the accessibility of products for those on low incomes.
9 Lives Furniture has two main areas of activity:
The collection of donated second-hand furniture and household goods and the sale and delivery of these goods from our Rickmansworth showroom, at 50% discount to those in need and at full price to the general public.
Providing training and work experience to unemployed adults, including those with a learning disability or recovering from mental ill health. Training courses are provided in furniture restoration (in the workshop) and many volunteering / work experience roles (in the showroom), as drivers or driver’s mates on the delivery van, in the office and in the workshop.
Our volunteers as always have been superb. Our thanks go to:
Administration : Diane Back and Sue Oakley.
Craft Group: Mary Jones and Alice Timms.
Drivers : Andrew Blatherwick and Richard Foster.
Drivers’ Mates : Quentin Cobham, Richard Foster, Greg Hirst, Edward Marsh, Russel Pickard and David Sharpe.
Showroom : Steph Busby, Ed Stanley, Kath Henderson, Anna Monk, Rachel Monk, David Moyes, Wendy Rennoldson, Anne Thorniley, Catharine Payne, Rohima Choudury, Ann Graham, Annette Timms, Ian Wyatt, Andrew Thorniley and Andy Wass.
Refurbishment : Nicola Dunlin, Curtis Mitchell, John Riding and Phillip Silverton.
We have a total of 30 volunteers (excluding the trustees), of whom 5 have a learning disability and 8 are recovering from mental ill health.
All of the Trustees have also worked in the showroom and workshop this year.
Our volunteers work unstintingly for the benefit of the charity, helping with furniture removal, administration, working in the showroom, furniture restoration and cleaning. The Trustees too are volunteers and our thanks go to them, who so ably lead the organisation, and to all those who donate household goods.
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.
2019/20 for the charity had stabilised slightly. The disruption caused by the housing development next door to the showroom had ceased. Sales have also been affected by the general economic climate and the increase in alternative sources of second-hand furniture.
The number of customers to our showroom who bought well-priced second-hand furniture fell slightly from 961 to 889 last year, 51% of these were new visitors to 9 Lives Furniture which is an increase.
The number of donors of furniture was 774 and we maintained the proportion of our furniture that was provided to those in need over last year. We also sold several specialist items on eBay, raising additional funds. Our customer base has become more focused on the immediate area as several new furniture recycling operations opened closer to those customers who would previously travel 10+ miles to 9 Lives Furniture.
Grant income allowed us to continue our popular training course one day a week for students with learning disabilities or recovering from mental ill health. We have a second supervised workshop day where volunteers work on upcycling furniture to be sold in the showroom. 10 students attended courses this year, in furniture restoration.
During the last financial year, 9 Lives have:
launched a new website and redesigned leaflets which went live on 1st August 2019
become a Frenchic paint stockist from 1 st May 2019
restructured team leaders' shifts to meet their individual needs
Since we started to provide training courses at 9 Lives Furniture over 534 students have attended the courses we offer. Our Tutor left us in December 2019. The decision was taken for the Manager’s shifts within the shop to be covered to enable her to take over the course. In addition, the manager also runs a class one day a week for former students who are able to work independently on projects which are then available for purchase from our showroom.
We continue to promote the charity’s activities through:
our Facebook, Instagram and Twitter account
fundraising quiz
speaking engagements at local organisations
selling of chalk paints
During 2020 we will be concentrating on developing awareness within our core areas of Rickmansworth and Watford as well as promotion through social media and focus will be on overcoming problems we are faced with due to Covid
In terms of volunteers:
we welcomed 2 new Trustees who joined the board
we continue to offer Duke of Edinburgh scheme placements for students
we continue to benefit from new volunteers who assist in the showroom
We are grateful for grants and donations this year from:
Tesco Rickmansworth
Sir Jules Thorne Charitable Trust
The Edward Gosling Foundation
Hertfordshire Community Fund
Beatrice Laing
Mary Kinross Charitable Trust
Shanly Foundation
Ralph Sangster Councillor Locality Budget
Awards for all
Frances Button Councillor Locality Budget
We earned a small amount of interest on the funds held on deposit.
A summary of the charity’s financial position is attached.
This year we have contained running costs and furniture sales have increased slightly. We have raised some grant income to allow us to continue our training courses in the short term. Gift Aid continues to provide a valuable source of additional income.
During the year the Trustees have considered what the charity’s reserves are, in line with the Charity Commission Guidelines. The Trustees set a policy that reflects the need to maintain current operations whilst providing for future commitments.
It is the policy of the charity that unrestricted funds, which have not been designated for a specific use, should be maintained at a sufficient level to pay off staff and settle the rent to the break point in the lease.
The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in sales income and/or funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. The level of reserves is monitored and reviewed four times a year.
Our sources of income are as follows:
Sales of donated goods, including discounted sales for those in need and increased charges for upcycled furniture
Grants and donations
Furniture delivery charges (we do not charge for collection)
Gift Aid on the sales of donated goods
Bank interest
Key areas of expenditure are:
Rent and running costs for the furniture showroom, workshop and offices (all in the same building) to provide premises for the display and purchase of furniture, workshop for the training courses and volunteering opportunities
Salaries and staff costs for the full time manager, part time showroom team leaders, tutors and driver to run the work of the charity
Van running costs to operate the collection and delivery service
Professional costs – preparation of the accounts
Marketing costs – ongoing publicity to promote the work of the charity and attract customers to the showroom
Purchasing paint for resale in the shop
Covid-19
9 Lives Furniture along with all other non-essential retailers had to close our shop for the duration of the lockdown, nearly three months. This was done for the safety of customers and our staff in line with Government Guidance. In addition all of the staff were furloughed on full pay subsidised by the Government's Job Retention Scheme.
Whilst this was a difficult time for all our staff and volunteers, many of whom rely on 9 Lives for their social interaction, Marie Frost and the staff have done an amazing job planning and preparing for the re-opening which took place on Tuesday 16 th June. For the immediate future special measures have been put in place to enable 9 Lives to open the shop and trade safely: hand sanitiser at the entrance, a one way system for customer flow, fewer people allowed in the shop at one time, screens at the till and card transactions only with no cash. The collection and delivery van was suspended for the initial period after opening as it was deemed not safe for staff and volunteers to enter people's houses and handle furniture that may carry the virus. We promoted our re-opening and initially had a surge in donations as people had been clearing their houses during lockdown but a booking system was implemented and any stock donated quarantined for 48 hours before being handled by staff or put on sale.
The financial implications of the shut down were very serious for 9 Lives and the Trustees had to look very closely at our financial situation to ensure we were able to continue to survive and then reopen to trade again. We reduced all non essential costs, received a small reduction in rent for the period, and a lot of work has gone into raising donations from trusts, companies, local and national government to enable the charity to stay solvent and look to the future. We thank all our funders for their invaluable support without which we would not have survived. We know from the local authority that the need for 9 Lives is greater than ever with more families facing financial hardship with unemployment rising and no or reduced income for many with companies closed. It has also been a very difficult time for people with learning difficulties and mental ill health where they are more vulnerable at times like this.
9 Lives has survived thanks to our funding support and are now looking to the future in the shop, training more people with learning difficulties and mental illness and helping people responsibly dispose of unwanted pre-loved furniture.
Reserves that are not required for day to day activities are held in a separate interest bearing bank account.
During the year the Manager and Trustees have continued to assess the major risks to which the charity is exposed and have ensured systems are in place to mitigate exposure to the major risks.
The Trustees have no plans to make significant changes to the activities of the charity. Our focus for the foreseeable future is on rebuilding the level of furniture sales and securing grant funding for the training courses.
We aim to achieve this through:
continued promotion of activities, including promoting the Emporium through homes and interiors magazines and local publications, websites and social media
continuing to build our online / social media activity including selling items online
flash sales to help maintain a reasonable turnover of stock
fundraising programme to generate funding for our training courses
continue to follow Covid 19 guidelines set by the Government
9 Lives Furniture is a Registered Charity and a company limited by guarantee.
The Trustees, who are also the directors for the purpose of company law, who served during the year were:
An application form to join the board of the 9 Lives Furniture is available for potential Trustees/directors. The board reviews this and potential candidates are invited to the premises in Rickmansworth for a full overview of the running of the scheme. All Trustees, who are also directors, are volunteers and unpaid.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
There is an annual business planning/training meeting for all Trustees and staff. Vacancies are advertised through the local Councils for Voluntary Services and in the local paper. Induction training (including working in the showroom) is given by the Chair and the staff to ensure a thorough understanding of the organisation. In addition, training on the role and responsibilities of a Trustee is available.
The charity has a Management Committee of eight (at the date of this report, we have seven) Trustees all of whom are volunteers. At any one time there are a minimum of three Trustees with no maximum. At each Annual General Meeting (AGM) any Trustee who has served for three years must retire from office but may offer themselves for re-election together with any new Trustees who have been co-opted by the Trustees since the last AGM. The Trustees delegate the day to day running of the charitable company’s operations to the Manager.
Staffing is as follows:
Manager (full time): Marie Frost
Team Leaders (part time – run the showroom, manage collection and delivery service and showroom volunteers): Mel Griffiths, Diane McGregor [retired Jan ’20], Jan Barber joined Jan ‘20
Drivers (part time – drive the van for the collection and delivery service and manage driver’s mates): Alan Storer
Tutor (part time - run the training courses): Penny Marriott resigned Dec’19, now Marie Frost
9 Lives Furniture is a member of the Furniture Re-Use Network - sharing best practice with other furniture re-cycling charities
Our manager also maintains relationships with a wide range and variety of organisations, including:
Local voluntary services network – Watford and Three Rivers Trust
Recycling – WasteAware
Referrals of students and volunteers – Mencap, New Hope Trust, Northwick Day Centre, Ascend, Watford Community Mental Health Team
Referrals of customers in need – Citizens’ Advice Bureaux, HertsHelp, Thrive Homes, Watford Community Housing and Paradigm Housing
The Trustees' r eport was approved by the Board of Trustees.
The Trustees, who are also the directors of 9 Lives Furniture for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of 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 year.
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 Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that 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.
I report to the Trustees on my examination of the financial statements of 9 Lives Furniture (the charitable company) for the year ended 31 March 2020.
As the Trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
9 Lives Furniture is a private company limited by guarantee incorporated in England and Wales. The registered office is 25 Wharf Lane, Rickmansworth, Hertfordshire, WD3 1HA.
The financial statements have been prepared in accordance with the charitable company's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charitable company. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
As at 31 December 2019 China had alerted the World Health Organisation (WHO) of several cases of an unusual form of pneumonia in Wuhan. Substantive information about what has now been identified as Coronavirus (or COVID-19) came to light in early 2020.
In the opinion of the Trustees, despite the potential effects of the COVID-19 outbreak, it is nonetheless considered that the Going Concern basis of the preparation of the financial statements remains appropriate. Similarly, in the opinion of the Trustees, no adjustments are required to the results or carrying values of assets or liabilities declared in these financial statements, and none have been made .
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Transfers between funds are used where there is an overspend on a particular fund beyond the amount originally funded where the charity has agreed to meet the costs from its unrestricted funds, or where the conditions relevant to the fund have been met and it has previously been agreed with the funder than any remaining funds can be retained by the charity towards it charitable activities.
Assets given for use by the charitable company are recognised when receivable.
Income from the sale of donated goods are accounted for when earned. The value represents the transactional price of the items sold.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit or independent examination fees and costs linked to the strategic management of the charity.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grants
Included in 2019 other grants received are grants from Tudor Trust, Watford Community Housing Trust, Batchworth Community Trust and Neighbourly Trust.
Sales of donated and refurbished furniture
Other Income
Other staff costs
Premises costs
Insurance
Repairs and maintenance
Office costs
Volunteer costs
Motor expenses
Travel and subsistence
General expenses
Legal and professional
Accountancy fees
Other finance costs
Purchases
The average monthly number of employees during the year was:
The Equipment Fund was established from donations received to meet the costs of equipment for the office and warehouse.
The Training Fund was established from donations and grants received in order to cost the cost of training courses, in particular furniture refurbishment .
Unrestricted funds
Restricted funds
Unrestricted funds
Restricted funds
There were no disclosable related party transactions during the year (2019 - none).