(Registered Charity No 211649) - (Company No: 604838)

THE FRIEND PUBLICATIONS LIMITED(Registered Charity No 211649)

(Company No: 604838)(A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2018

MYRUS SMITHChartered Accountants

Norman House,8 Burnell Road,Sutton, Surrey.

SM1 4BW


Company No: 604838(A company limited by guarantee)

CONTENTS

Page

Trustees' Annual Report

Independent Examiner's Report

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

1 —8

10

12-22



TRUSTEES' ANNUAL REPORT


The Council presents its statutory report together with the accounts of The Friend Publications Limitedfor the year ended 30 June 2018.

Reference and administrative details

Council members at 30 June 2018(Trustees and Directors)

Janet BarlowNancy BuchananLis BurchChaundra CrouchVal FergusonHugo FinleyGerald HewitsonSandra HorsfallPaul JeorrettTim RouseRichard Summers

Secretary

Editor and Chief Executive Officer

Registered offic

Website address

Company registration number

Charity registration number

Independent Examiner

Bankers

Nancy Buchanan

lan Kirk-Smith

Friends House173 Euston RoadLondon NW1 2BJ

www. thefriend. org

00604838 (England and Wales)

211649 (Charity Commission forEngland and Wales)

K.C. Fisher FCAMyrus SmithNorman House, 8 Burnell RdSutton SM1 4BW

Co-operative Bank picPO Box 250Skelmersdale WN8 6WT

CAF Bank25 Kings Hill AvenueKings Hill, West MailingKent ME19 4JQ

Solicitors Bindmans LLP236 Gray's Inn RoadLondon WC1X 8HB

Investment Managers Rathbone Greenbank10 Queen SquareBristol BS1 4NT




FOR THE YEAR ENDED 30 JUNE 2018/contd. ..

Report of the Council

The report, which represents a directors' report for compliance with company legislation, has beenprepared in accordance with the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out onpages 12-13 of the attached accounts and comply with the memorandum and articles of association ofThe Friend Publications Limited and applicable laws.

Structure, governance and management

ConstitutionThe Friend Publications Limited is a registered charity constituted as a company limited by guaranteein accordance with the memorandum and articles of association dated 20 May 1958, updated inDecember 2008 and again in February 201S.

The CouncilThe Council is the meeting of trustees and directors. Members of Council constitute directors of thecompany for the purposes of the Companies Act 2006 and trustees of the charity for the purposes ofcharity law. All Council members are appointed for a three-year term of offtce and the retirement andappointment of members is staggered over three years. Council members are appointed by theCouncil on the advice of its Nominations Committee. On appointment new members are provided withinduction information consisting of a copy of the governing documents, the minutes of recent Councilmeetings, information on current Council members and staff, the latest Report and financialstatements of the company and publications of the Charity Commission for England and Walesrelating to the role and responsibilities of trustees. New members are expected to visit the office inorder to meet staff and familiarise themselves with the work cerned out on their behalf.

The following Council members served throughout the year except where indicated.

Janet Barlow (appointed 7 December 2017)Nancy BuchananLis Burch (appointed 7 June 2018)Chaundra Couch (appointed 1 March 2018)Geoffrey Durham (retired 7 June 2018)Val FergusonHugo FinleyRa)it Gholap (retired 7 June 2018)Gerald HewitsonSandra HorsfallPaul JeorrettRosamund McCarthy (retired 7 December 2017)Tim RouseNicholas Sims (retired 7 December 2017)Richard SummersGillian Waddilove (released 1 March 2018)

Barbara Windle was appointed as a member of Council at the meeting on 6 September. Maria Huff willbe appointed at the meeting on 29 November 2018. No other Council members have been appointedsince the financial year end at 30 June 2018.




FOR THE YEAR ENDED 30 JUNE 2018/co ntd, .

In accordance with the charitable company's Articles of Association, one third of the Council membersretire each year by rotation and are eligible for re-election for a further period of up to three years. Atthe AGM in November 2018 Gerald Hewitson will have completed his initial three-year term and will beoffering himself for re-election for a further three years. Nancy Buchanan will have completed sevenyears and will retire having served an additional year to provide a handover period to her successor asSecretary, Janet Barlow. Val Ferguson and Hugo Finley retire after having each served 6 years.

The purpose of the charitable company is the production of printed and online publications intended tobenefit, educate and inform the Religious Society of Friends (Quakers) in Britain and throughout theworld. The company is independent of the Yearly Meeting of the Religious Society of Friends in Britain.From time to time the company is in receipt of discretionary grants from the centrally-managed fundsof Britain Yearly Meeting and, when received, these are disclosed in the financial statements, Somemembers of Council serve both the company and Britain Yearly Meeting in a personal capacity and notas representatives.

Liabili of the MembersThe liability of the members is limited by guarantee. In the event of the charitable company beingwound up during the period of membership or within the year following, members are required tocontribute an amount not exceeding 610.

~o

The Council has ultimate responsibility and control of The Friend Publications Limited. Committeesand Groups are set up to give guidance to the Council in its policy and general decision making. Day-to-day management is the responsibility of the Editor of The Friend with financial oversight exercisedby the Treasurer.

Statement of the res onsibili of Council membersThe Council members (who are also directors of The Friend Publications Limited for the purposes ofcompany law) are responsible for preparing the Trustees' Annual Report and the financial statementsin accordance with applicable law and United Kingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice).

Company law requires the Council members 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 incomingresources and application of resources, including the income and expenditure, of the charitablecompany for that period. In preparing these financial statements, the Council members are required to:

~ select suitable accounting policies and then apply them consistently;~ obsenre the methods and principles in the Charities SORP 2015 (FRS 102);~ make judgements and estimates that are reasonable and prudent;~ state whether applicable UK Accounting Standards 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 operation.

The Council members 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 toensure that the financial statements comply with the Companies Act 2006. They are also responsiblefor safeguarding the assets of the charitable company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.

THE FRIEND PUBLICATIONS LIIIIIITED

(Registered Charity No 211649)Company No: 604838

(A company limited by guarantee)


FOR THE YEAR ENDED 30 JUNE 2018lcontd. ..

Risk management

The Council critically reviews at least annually the major risks to which the charitable company isexposed and continues to develop systems to better mitigate the exposure to these risks. In assessingrisks and prioritising mitigation, attention has been paid to the likelihood of occurrence, the potentialimpact of such an occurrence and the controllability of the risk.

Public Benefit and Objectives

In reviewing the year past and considering the objectives for the year ahead, the Council has takenaccount of the Charity Commission's guidance on public benefit, including the guidance on feecharging. The principal objective of the charitable company is the production and publishing of aweekly newspaper for the benefit of the Religious Society of Friends (Quakers) for the purpose ofpropagating the religious teaching of that Society and of promoting interest in its work". The objectiveis to meet the needs of Quakers and others in Britain and worldwide for news, information, opinionsand articles on issues relevant to their faith, their work as a faith community and their individualspiritual development and to share these values more widely. The Friend and The Friends Quarterlyare sold by annual subscription with various discount schemes to encourage new subscribers. Top-level access to the website is free. In reviewing the level of subscription, the Council takes intoaccount the desirability of extending the readership to any member of the public with an interest in

Quakerism. Many subscriptions are taken out by local meetings for the purpose of making The Friendand the Friends Quarterly freely available to members of the public.

Working for The Friend Publications Limited

The company is very dependent on all the people who help to ensure that The Friend and The FriendsQuarterly maintain their high standard and are published regularly. This is principally the staffemployed, or contracted, by the company but also those who give their time voluntarily, The trusteesare grateful to the following who worked during the year.

Staff:Editor of The FriendEditor of The Friends QuarterlyProduction and Office ManagerSub-EditorJournalistAdvertisement ManagerSubscriptions OfticerFinance OfficerProof reader

lan Kirk-SmithTony StollerElinor SmallmanGeorge OsgerbyRebecca Hardy (appointed January 2018)George PenalunaPenny DunnElaine BrightGaby Scott

Volunteers:Arts CorrespondentEnvironment Correspondent

Rowena LoveranceLaurie Michaelis




FOR THE YEAR ENDED 30 JUNE 2018lcontd. . .

Performance and Achievements

The trustees are conscious of the stewardship they exercise for a tradition of independent Quakerjournalism stretching back to 1843 and represented by The Friend and The Friends Quarterly as theyexist in 2018.

Last year's report acknowledged the importance trustees place on finding new ways to fund thecompany and devising new strategies to benefit, educate and inform the Religious Society of Friends(Quakers) in Britain and throughout the world. A key piece of work running across the year, led by theStrategy Planning Development Group established in December, was the development of a newStrategic Plan 2018-23, the first draft of which was presented to Council in June as a workingdocument to evolve with further input from both staff and trustees. The plan was informed by a reviewof both the threats to the operating environment including the continuing slow decline of subscriptionsand the opportunities for delivering on its mission in the changing context of the Quaker and widerfaith audience for print and on-line media.

Trustees continued to benefit from the devoted service of the staff team led by lan Kirk-Smith as Editorof The Friend and chief executive officer of the company. The addition of Rebecca Hardy as part timejournalist enhanced the Friend's ability to develop greater reach into British Quakerism and broadenthe range of news stories.

Extensive coverage and the presence of the staff team at Yearly Meeting Gathering in August 2017and Yearly Meeting in May 2018 demonstrated the role of the Friend in providing a 'journal of record'of significant events and a mirror of the life, faith and witness of Friends. August contributors to theFriends Quarterly picked up 'movement building', a theme that emerged during the gathering andconsidered it in the light of both historic and contemporary Quaker activities. Books continue to be anadditional source of income. Quaker Renewal by Craig Barnett and Gleanings by Laurie Michaelisproved to be among the best sellers at the Yearly Meeting bookshop The May edition of the Friendincluded an interview with Chris Alton, the Swarthmore Lecturer, The concluding article of a series byRowena Loverance on the book 'God, words and us' anticipated the proposed revision of 'QuakerFaith and Practical

The special edition of Friends Quarterly in February on Quakers and mental health, produced in

association with Quaker Life, was particularly well received confirming that themed editions offer astrong basis for the future. Special editions of the Friend were produced for Quaker Week and twenty-five years of Meeting of Friends in Wales. The Quaker Week edition reflected a diversity of individualvoices, young and old, within British Quakerism and explored how Friends are putting their faith intoaction in a variety of ways. The edition on Friends in Wales included poems, in Welsh and English,articles on the history of Friends, peace witness, reports on aspects of faith in action, criminal justiceand a section of personal reflections on What it means to be a Quaker'. The Christmas/New Yearbumper edition had a diverse range of content —from pages for young Friends to interviews withartists and spiritual and seasonal reflections.

Assiduous preparation for data migration to the new subscription system and additional work onrevising policies and procedure for the General Data Protection Regulations (GPDR) compliance tooklonger than anticipated and the new subscriptions system did not become operational during the year.Whilst this delayed the opportunities to plan on the basis of enhanced intelligence of the subscriptionbase, the longer-term benefits of the resulting synergy will bear fruit in the coming year including in

supporflng the redesign of the web site, Trustees were satisfied that TFPL was GDPR industrystandard compliant at the end of the year and that high-risk areas had been prioittised, althoughfurther work remains to be completed in the coming year.




FOR THE YEAR ENDED 30 JUNE 2018/contd. . .

In addition to the Strategy Day, trustees held four Council meetings during the year and receivedregular reports from the Editors of both periodicals, members of staff dealing with subscriptions,advertisements, production and office management, the Finance Committee, Marketing and SocialMedia Group, Nominations Committee and Personnel Advisory Group. They critically monitoredprogress on the development of the Strategic Plan and GPDR compliance and the impact of thechanges in printing arrangements and buying out the liability to The Pensions Trust.

lan Kirk Smith announced his intention to the June Council meeting of retiring in November 2018 after8 years' service, Trustees appointed a working group to update the job specification and plan theappointment process over the summer in preparation for recruitment in the autumn.

Looking ahead

Trustees and staff are excited about the opportunities ahead whilst accepting that TFPL operates in achallenging environment. The appointment of Joe Jones as the new CEO and Editor from January2019 will prompt further development and the beginning of the implementation of the Strategic Plan.Trustees are well aware of their duty to support and nurture the whole staff team in this transition.

Legacies, Grants and Donations

In 2017/18 in addition to the welcome annual grant of F14,913 received from Britain Yearly Meeting(BYM), TFPL was grateful to receive an additional generous donation of 67,130 (restricted income) tocover the cost of some new computer hardware. We were also pleased to receive grant monies frommany grant giving trusts and charitable organisations, These included The Doric Trust, the William ACadbury Charitable Trust, CB &HH Taylor 1984 Trust, Oliver Morland Charitable Trust, The WestcroftTrust, The Oakdale Trust, The Mollie Croysdale Charitable Trust and Norfolk and Waveney AreaMeeting. Grants received in 2017/18 greatly exceeded the total in the previous year and were allunrestricted in nature, which gives the organisation greater fiexibility in applying them where needed.We also continued to receive generous donations towards our funds from interested individuals, Weare most grateful for the continued generosity of all our individual and charitable supporters.

Financial Review

In the 2017/1 8 accounts, sales from The Friend and The Friends Quarterly have again been separatedout from the sale of the online Friend and the Digital Archive. This enables us to analyse the variouselements of our activities. The income from The Friend and Friends Quarterly reduced during 2017/18by E9,000, but revenue from advertising on the other hand has increased to make up two thirds of thisdecrease. It is always worth noting that advertising revenue and book sales in the Friend is regularlyover 30% of our annual revenue from charitable activities. Subscriptions to the Online Friend and theDigital Archive have also decreased slightly over the year; it is interesting to note how the papermagazines have held up in popularity. Investment income has dipped again during this financial year(E5,332 as opposed to 67,441 in 2016/17); markets have been volatile in a year of political uncertaintyabout our future in Europe. Rathbone Greenbank's services for this investment activity cost E2,379during the year (Notes 2-5).

This is the first set of financial results received following the decision taken in 2016/17 to pay off ThePension Trust (TPT) pension liability. Arrangements were made to show the liability for this paymentas a "creditor: amounts falling due within one year" in last year's accounts so the results for 2017/18are 'dean' of any additional liability in this respect. Note 17 covers the detail of this transaction. We arenow able to see the future prospects for TFPL's activities without this financial burden.

THE FRIEND PUBLICATIONS LIII/IITED

(Registered Charity No 211649)Company No: 604838




On the recurring expenditure side, publication, editorial, printing and advertising costs overall haveagain reduced slightly (Note 7); this continues a welcome trend following the change of printer fromHeadleys to Warners last year. The support costs last year were greatly inflated by the payment in

November to TPT to discharge our pension liability costs, and overall show a slight reduction on otherelements when compared to last year's costs. Staff costs increased slightly due to staff attendance atYMG, and staff were awarded a modest increase in salary following the increase in RPI in 2017/18(Note 11).Website maintenance costs have reduced again this year, but all other costs have remainedin balance; this outcome is very satisfactory. A great deal of work has been carried out installing a newsubscription system for managing the full range of subscription options on offer. When complete, thiswork should result in greater efficiency and transparency for staff and subscribers, and allow moreflexible use of staff resources. Trustees recognise that replacement and upgrading of computer andwebsite facilities are going to be a continuing financial requirement if The Friend and Friends Quarterlyare to remain 'flt for purpose' from the point of view of keeping abreast of appropriate technology.

The financial results in 2017/18 are very pleasing and the staff are to be congratulated on keepingcosts down, whilst producing magazines which continue to remain attractive to the Quaker communityand beyond. Net income on our core activities showed a very welcome surplus of F42,710 in 2017/18,and we hope this will set a welcome trend in our financial fortunes for the future. Overall, including thegains on our investments, the accounts show a surplus of income over expenditure of F62,371 thisyear. Grateful thanks go to everyone who contributed to this pleasing outcome.

Reserves Policy

The Council has adopted the policy of ensuring that there are sufficient reserves in the event of thecompany ceasing to trade. The charitable company does not have a share capital and generalreserves are required to provide working capital, financial development, capital expenditure andincome to meet production costs as well as to provide a contingency fund for unforeseen events,

After the repayment of the debt to TPT, it is still necessary to have sufficient reserves to safeguarddeferred income (prepaid subscriptions), pension, tax and social security costs and potentialredundancy costs in case of cessation (6 months staff costs); these total f213,335. As the accountsindicate, unrestricted reserves at 30 June 2018 now stand at 8285,302. The Trustees assess that thecharity's assets would cover its liabilities in the event of a winding up and are aware of their continuingresponsibility to keep the reserves under review.

Investments Policy

The Council's investment policy has the primary object of achieving sufficient capital growth to ensurethat reserves can be maintained at the required level. Where possible, investments are also used togenerate income to supplement that from trading sources. Rathbone Greenbank has been appointedto manage our investments with the overall investment policy being to follow the ethical guidelinesissued by the Religious Society of Friends. Oversight and review of our investments and investmentpolicy is delegated to the Finance Committee which reports to the Council regularly. RathboneGreenbank provides quarterly returns of their performance. Our investment policy is reviewedannually.

Assets

Acquisitions and disposals of fixed assets during the year are recorded in the notes to the financialstatements.





Independent Examiner

The Council has taken advantage of the provision in the Charities Act 2011 that charities with grossincome of less than 21,000,000 do not need to be subjected to a full audit. K.C. Fisher of Myrus Srr. .'.hwas reappointed as independent Examiner for the current year.

This report has been prepared in accordance with the special provisions of Part 15 of the CompaniesAct 2006.

Signed on behalf of the Council

Paul Jeorett (Clerk) Sandra Horsfall (Treasurer)

Approvedbythe Council on W~ 2019

INDEPENDENT EXAMINER*S REPORT TO THE TRUSTEES OF

THE FRIEND PUBLICATIONS LIMITED


I report to the charity trustees on my examination of the accounts of the company for the year ended30 June 2018 which are set out on pages 10 to 22,

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) youare responsible for the preparation of the accounts in accordance with the requirements of theCompanies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the company are not required to be audited under Part '6of the 2006 Act and are eligible for independent examination, I report in respect of my examination of

your company's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Ac.').In carrying out my examination I have followed the Directions given by the Charity Commission undersection 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the company's gross income exceeded 2250,000 your examiner must be a member of a bo.lylisted in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examinationbecause I am a member of the Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no matters have come to my attention in connectionwith the examination giving me cause to believe that in any material respect:

2.3.

accounting records were not kept in respect of the company as required by section 386 of the2006 Act; orthe accounts do not accord with those records; orthe accounts do not comply with the accounting requirements of section 396 of the 2006 Act otherthan any requirement that the accounts give a 'true and fair view' which is not a matterconsidered as part of an independent examination; orthe accounts have not been prepared in accordance with the methods and principles of theStatement of Recommended Practice for accounting and reporting by charities applicable '.ocharities preparing their accounts in accordance with the Financial Reporting Standard applicab'sin the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination '.owhich attention should be drawn in this report in order to enable a proper understanding of theaccounts to be reached

K.C. Fisher FCAC/o Myrus SmithChartered Accountants

0C Ft 4 2019

Norman House8 Burnell RoadSutton, Surrey

SM1 4BW

THE FRIEND PUBLICATIONS LIMITED(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES(Incorporating Income and Expenditure Account)


Income from:Donations and legaciesCharitable activitiesInvestments

Unrestricted RestrictedNotes Funds Funds

E F

2 33,802 7,1303 360,6944 5,332

Total2018

F

40,932360,694

5,332

Total2017

6

69,262364,539

7,441

Total 399,828 7,130 406,958 441,242

Expenditure on:Raising fundsCharitable activities

Total

5 2,379 2,379 2, 1916 359,649 2,220 361,869 508,993

362,028 2,220 364,248 511,184

Net Income/(expenditure) beforeinvestment gains 37,800 4,910 42, 710 (69,942)

Gains on investments

Net income/(expenditure)

Transfers between funds

Net movement in funds

14

10

19,661

57,461

57,461

4,910

4,910

19,661 34,661

62,371 (35,281)

62,371 (35,281)

Reconciliation of funds:Total funds brought forward 227,841 7,431 235,272 270,553

Total funds carried forward 6285,302 612,341 f297,643 6235,272

All income and expenditure derives from continuing activities.

The Statement of Financial Activities includes all recognised gains and losses

The notes form part of the financial statements.

10


BALANCE SHEET

AS AT 30 JUNE 2018

FIXED ASSETSTangible assetsInvestments

CURRENT ASSETSDebtorsCash at bank and in hand

CREDITORS: Amounts falling duewithin one year

Notes1314

15 23,44316 129,094

152,537

17 141,824

2018

1,030285,900

286,930

2017

39,622263,404

303,026

378,752

310,998

310,998

NET CURRENT ASSETS/(LIABILITIES)

NET ASSETS

REPRESENTED BY:Unrestricted fundsRestricted funds

19

1818

10,713

2297,643

285,30212,341

(75,72 II)

2235,272

227,84 I

7,43 I

2297,643 6235,272

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for theyear ended 30 June 2018.

The members have not required the company to obtain an audit of its financial statements for the yearended 30 June 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:(a) ensuring that the company keeps accounting records which comply with Section 386 and 387 of

the Companies Act 2006 and

(b) preparing financial statements which give a true and fair view of the state of affairs of thecompany as at the end of each financial year and of its profit for loss for each financial year in

accordance with the requirements of Sections 394 and 395 and which otherwise comply with

the requirements of the Companies Act 2006 relating to financial statements, so far ssapplicable to the company. \

The financial statements have been prepared in accordance with the special provisions for sm;IIcompanies under Part 15 of the Companies Act.

The financial statements were approved and authorised for issue by the council on 7 AQrx:LI 2019and signed on its behalf by:

pg~Paul Jeorrett (Clerk) Sandra Horsfall (Treasure

The notes form part of the financial statements.


NOTES TO THE FINANCIAL STATEMENTS


1. ACCOUNTING POLICIES

1.1 General information and basis of accounting

The Friend Publications Limited is registered charity (no. 211649) and a private company (no.00604838) limited by guarantee, registered in England and Wales. Each member is liable tocontribute an amount not exceeding 810 in the event of the charitable company being woundup. The registered office is given in the reference and administrative details on page 1.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statementshave been prepared in accordance with Accounting and Reporting by Charities: Statement ofRecommended Practice applicable to charities preparing their accounts in accordance with theFinancial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), theFinancial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted AccountingPractice.

The financial statements are prepared on a going concern basis and under the historical costconvention. The significant accounting policies applied in the preparation of these financialstatements are set out below. These policies have been consistently applied to all yearspresented unless otherwise stated.

1.2 Income recognltlon

Items of income are recognised in the financial statements when all of the following criteria aremet~ The charity has entitlement to the funds;~ any performance conditions have been met or are fully within the control of the charity;~ there is sufficient certainty that receipt of the income is considered probable; and~ the amount can be measured reliably.

Legacies are included in the Statement of Financial Activities when the charity is advised by thepersonal representative of the estate that payment will be made or property transferred and theamount involved can be quantified with reasonable accuracy.

1.3 Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make payment to athird party, it is probable that settlement will be required and the amount can be measuredreliably.

Expenditure includes those costs of a direct nature which can be allocated to a specific activity.It also includes indirect costs, including governance costs that do not relate to a specific activitybut are necessary to support those activities. Support costs are apportioned to each activity onthe basis of staff time.

1.4 Tangible fixed assets

All assets costing more than E1,000 and with an expected useful life exceeding one year arecapitalised,

Depreciation is charged at 33.3% on a straight line basis on the value of the furniture and officeequipment in order to write the assets off over their useful economic lives.

12




1. ACCOUNTING POLICIES/contd. ..

1.5 Investments

Listed investments in are initially recognised at transaction price and subsequent measured atfair value at the end of each financial reporting period. Fair value is based on the quoted marketvalue on a recognised stock exchange. Gains and losses on revaluation and / or disposal oflisted investments are recognised in the Statement of Financial Activities in the year in whichthey arise.

1.6 Fund accounting

Unrestricted general funds are freely available for use in furtherance of the objects of the charityand which have not been designated for particular purposes.

Designated funds are unrestricted funds set aside by the trustees for particular purposes.

Restricted funds are those funds which can only be used in accordance with the wishes of thedonor or which have been raised for a specific purpose.

1.7 Pensions

The charity operates a defined contribution pension scheme. Contributions payable under thescheme are charged to the Statement of Financial Activities in the year to which they relate.

1.8 Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks ofownership remain with the lessor are charged to the Statement of Financial Activities on astraight line basis over the lease term.

1.9 Financial instruments

Debtors and creditors with no stated interest rate and receivable or payable within one year arerecorded at transaction price. Any losses arising from impairment are recognised inexpenditure.

DONATIONS AND LEGACIESUnrestricted

FundsRestricted

FundsTotal2018

5

Total2017

E

DonationsLegaciesGrant from Religious Society of Friends,

Britain Yearly MeetingGrants from trusts

6,889

14,91312,000

F33,802

7,130

E7,130

6,889

22,04312,000

E40,932

5,55745,525

14,6803,500

669,262

Of the 669,262 recognised in 2017, 666,762 related to unrestricted funds and F2,500 torestricted funds.

13




3. INCOME FROM CHARITABLE ACTIVTIESUnrestricted Restricted Total Total

Funds Funds 2018 2017E

Publishing —The Friend and FriendsQuarterly

Advertising and book salesOnline Friend and Digital Archive

226,450122,59611,648

6360,694 ENil

226,450 235,751122,596 115,72111,648 13,067

6360,694 f364,539

All of the 6364,539 recognised in 2017 related to unrestricted funds.

4. INVESTMENT INCOMEUnrestricted Restricted Total Total

Funds Funds 2018 20178 8 E

Dividends and interest from listedinvestments

Bank interest5,332 5,332 7,433

8

65,332 FNil f5,332 67,441

All of the 67,441 recognised in 2017 related to unrestricted funds.

5. COST OF RAISING FUNDSSupport Total Total

Direct costs costs 2018 2017

Investment management fees 62,379 ENII f2,379 f2, 191

All of the F2, 191 expenditure recognised in 2017 was charged to unrestricted funds.

6. COST OF CHARITABLE ACTIVITIES

Direct costs(note 7)

Supportcosts

(note 8)Total2018

Total2017

Production of printed and onlineeducational publications E288,681 873,188 f361,869 f508,993

Of the 6508,993 expenditure recognised in 2017, f508,120 was charged to unrestricted fundsand 6873 was charged to restricted funds.

14




7. ANALYSIS OF DIRECT COSTS

Publication costsEditorial costsPrinting and advertising costs

Total2018

6

116,832117,87153,978

6288,681

Total2017

6

128,509110,969

50,302

6289,780

8. ANALYSIS OF SUPPORT COSTSTotal2018

6

Total2017

Website maintenanceOflice costsPremises costsMarketingSubscription and promotion costsWithdrawal from pension fund (see note 21)Interest expenseGovernance costs (note 9)

3,54411,17515,000

2,76735,022

(800)

6,480

4,77012,04715,000

2,29334,586

140,9482, 1947,375

673,188 6219,213

9. GOVERNANCE COSTS

Staff costsExamination feesCouncil and trustee meetings

Total2018

6

1,4005,080

66,480

Total2017f

3,3431,3802,652

87,375

10. NET INCOME / (EXPENDITURE)

This is stated after charging:

2018 2017

DepreciationIndependent examiners' remunerationOperating lease rentalsPension costs (defined contribution scheme)

6515E1,400

615,000611,306

KNII

EL38015,000

6151,672

15



FOR THE YEAR ENDED 30 JUNE 2018Icontd. . .

11. STAFF COSTS

Wages and salariesSocial security costsEmployer pension costsOther related employment costsFreelance fees

Pension deficit contributions (see nots 21)

2018f

153,01111,80912,106

45313,329

190,708(800)

f189,908

2017f

144,99911,43910,724

48618,199

185,847140,948

f326,795

Staff costs anafysed by function:Production and editorialAdvertisingSubscriptionsFriends QuarterlyGovernance

109,94446,83030,375

3,559

105,11144,93829,122

3,3333,343

f190,708 f185,847

No employee received total employee benefits (exduding employer pension costs) of more thanf60,000 per annum during the year (2017 —none).

The average number of full and part-time staff, analysed by functionwas:

2018No.

2017No.

Production and editorialAdvertisingSubscriptionsManagement and administration

2.91.01,00.1

5.0

2.91.01.00.1

5.0

The average number of full-time equivalent staff, analysed byfunction was:

Production and editorialAdvertisingSubscriptionsManagement and administration

Travel and subsistence expenses were reimbursed to, or paid directly on behalf of, eight (2017:eight) members of the Council amounting to f3,934 (2017:f2,651).

Total employee benefits received by key management amounted to f43,603 (2017; f43,603)

2.3 2.31.0 1.01.0 1.00.1 0.1

4.4 4.4

No member of the Council received any remuneration in respect of their services as a memberof the Council during the year.

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FOR THE YEAR ENDED 30 JUNE 2018lcontd. . .

12. TAXATION

The Friend Publications Limited is a registered charity and therefore is not liable to Income Taxor Corporation Tax on income or gains derived from its charitable activities, as it falls within thevarious exemptions available to registered charities.

13. TANGIBLE FIXED ASSETSFurniture and office equipment

2018f

2017f.

CostAt 1 JulyAdditions

At 30 June

DepreciationAt 1 JulyCharge for the year

At 30 June

23,4391,545

24,984

23,439515

23,954

23,439

23,439

23,439

23,439

Net Book Value30 June f1,030 fNil

All tangible fixed assets are held by the charity for use in meeting its charitable objects

14. INVESTMENTS

Listed investments;Fair value at 1 JulyAcquisitions at costDisposals at opening market valueUnrealised gains on revaluation

2018

310,99839,143

(82,691)18,450

2017f

292,88823,139

(38,418)33,389

Fair value at 30 June f285,900 f310,998

Historic cost at 30 June f200,422 f167,709

Analysis of investment gains:

Unrealised gains on revaluationRealised gains on disposal

2018f.

18,4501,211

f19,661

2017f

33,3891,272

f34,661

All of the f34,661 gains recognised in 2017 related to unrestricted funds.

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14. INVESTMENTS/contd. ..

At 30 June 2018 the portfolio comprised the following investments:

Ishares II PLC UK Gilts UCITS ETFTreasury Stock - 1.8% 22/1 1/2019Standard Life Investments - Global Index Linked BondDeutsche Bahn Finance BV - 2.75% MTN 20/06/2022Rathbone Unit Trust Management - Ethical Bond SPlaces for People - 4.25% Bonds 15/12/2023Johnson Matthey PLC - Ordinary SharesKeller Group PLC - Ordinary SharesMarshalls Group PLC - Ordinary SharesSmith (DS) PLC - Ordinary SharesHalma PLC - Ordinary SharesSpirax-Sarco Engineering PLC - Ordinary sharesCranswick PLC - Ordinary SharesBellway PLC - Ordinary SharesBerkeley Group Holdings PLC - Ordinary SharesSmith & Nephew PLC - Ordinary SharesDechra Pharmaceuticals PLC - Ordinary SharesHikma Pharmaceuticals PLC - Ordinary SharesMarks & Spencer Group PLC - Ordinary SharesNext PLC - Ordinary SharesRelx PLC - Ordinary SharesVodafone Group PLC - Ordinary SharesLloyds Banking Group PLC - Ordinary SharesVirgin Money Holdings (UK) PLC - Ordinary SharesLegal & General Group PLC - Ordinary SharesPrudential PLC - Ordinary SharesSt Modwen Properties PLC - Ordinary SharesCivitas Social Housing PLC - Ordinary SharesLondonMetric Property PLC- Ordinary SharesMicro Focus International PLC - Ordinary SharesSage Group Pl C - Ordinary SharesF&C Fund Management LTD - Responsible UK Income 2 IncHerald Investment Trust PLC - Ordinary SharesLiontrust Investments LTD- SF European Growth 2Stewart Investors - Asia Sustainability BF&C Portfolios Fund - BMO Responsible Global EMREdentree Investment Management - Amity International BF&C Fund Management LTD - Responsible Global Equity 2Fund Partners LTD - IM WHEB Sustainability BJanus Henderson Investments - Global Sustainable Equity 1

Impax Environmental Markets PLC - Ordinary SharesMenhaden Capital PLC - Ordinary SharesForesight Solar Fund Ltd - Ordinary SharesRenewables Infrastructure - NPV Ordinary SharesMayfair Capital Investment Management - Property inc

Trust for Charity

7,63011,60412,4234,2208,9302,0556,4782,5353,1823,8574,7955,0203,7143,6053,7853,7755,8421,8011,6532, 1184,0562,5732,5222,3112,5272,9492,4383,6312,7752, 1183,206

14,1644,7087,860

10,74511,82112,56925,20023,19319,828

7,9803,4914, 1234,400

5,690

5285,900

% ofporffoliomarketvalue

2 7%4.1%

1,5%3.1%0.7%2.3%0.9%

1 4'/1 7'/1.8%1.3%1.3%1.3%1.3%2.0%0.6%Q 6%0.7%1.4%0.9%0.9%0.8%0.9%1.0%0.9%1 3%1 0'/0.7%

5 Q'/

2 8%3 8%41%4.4%8.7%8.0%6 9'/2.8%1.2%1,4%1,5%

2 0%

1QQ'/




15. DEBTORS

Publications debtorsPrepaymentsVAT recoverableCash held by investment manager

2018E

11,409675

1,4419,918

2017F

10,421263

2,03026,908

f23,443 E39,622

16. CASH AT BANK AND IN HAND

Current accountsDeposit accountsCashPaypal

20186

122,4115,553

514616

2017

107,330155,458

616

6129,094 f263,404

1?. CREDITORS

Amounts falling due within one year:

2018 2017E

Trade creditorsPension scheme liability (see note 21)Social security costs and taxationDeferred income - Subscriptions

- BYM GrantAccrualsCredit card

12,159

6,022114,355

7,5001,500

288

6141,824

13,836238,363

4,897112,163

7,4141,500

579

6378,752




18. MOVEMENT IN FUNDS

2018BalanceBroughtforward

f.

Income(incl. gains) Expenditure Transfers

f

BalanceCarriedforward

F.

Unrestricted FundsGeneral funds 227,841 419,489 362,028 285,302

Restricted FundsWebsite developmentInvestigative reportingWW1 digitisation appealYearly Meeting- Warwick UniversityOffice equipment

2,934377

1,620

2,500

7,431

7,130

7,130

822

793605

2,220

2,934337798

1,7076,525

12,341

Total Funds f235,272 f426,619 F364,248 fNil F297 643

Comparative information for the net movement in funds in the previous year is as follows:

2017BalanceBrought Incomeforward (incl. gains) Expenditure Transfers

F F f F

BalanceCarriedforward

Unrestricted FundsGeneral funds 264, 749 473,403 (510,311) 227, 841

Restricted FundsWebsite developmentInvestigative reportingWW1 digitisation appealYearly Meeting- Warwick University

2,934377

2,493

5,804

2,500

2,500

(873)

(873)

2,934377

1,620

2,500

7,431

Total Funds F270,553 F475,903 f(511,184) FNil f235,272

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19. ANALYSIS OF NET ASSETS BETWEEN FUNDSUnrestricted

Fundsf

RestrictedFunds

f.

TotalFunds

fFixed assetsCurrent assetsCurrent liabilities

285,900141,226

(141,824)

1,03011,311

286,930152,537

(141,824)

As at 30 June 2018 f285,302 f12,341 6297,643

Comparative information for the analysis of net assets between funds in the previous year is asfollows:

Fixed assetsCurrent assetsCurrent liabilities

UnrestrictedFunds

f.

310,998295,595

(378,752)

RestrictedFunds

7,431

TotalFunds

f

310,998303,026

(378,752)

As at 30 June 2017 f227, 841 f7,431 f235,272

20. OPERATING LEASE COMMITMENTS 2018 2017

At 30 June 2018 the total minimum payments due under non-cancellable operating leases were as follows:

Within one year f15,000 f15,000

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21. THE PENSION TRUST —THE GROWTH PLAN

Until 30 June 2017, the charity participated in the above multi-employer pension schemewhich provides benefits to some 1,300 non-associated participating employers. The scheme isa defined benefit scheme in the UK. It was not possible for the charity to obtain sufficientinformation to enable it to account for the scheme as a defined benefit scheme. Therefore it

accounted for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which cameinto force on 30 December 2005. This, together with documents issued by the PensionsRegulator and Technical Actuarial Standards Issued by the Financial Reporting Council, setout the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Participating employers arelegally required to meet their share of the scheme deficit on an annuity purchase basis onwithdrawal from the scheme.

During the year ended 30 June 2017, the trustees took the decision to withdraw from thescheme. The total debt on withdrawal agreed with The Pension Trust amounted to f238,363(including actuarial fees) and this sum was paid by the charity in November 2017 in full andfinal settlement. A liability for this amount was recognised in the financial statements for theyear ended 30 June 2017 (included in creditors falling due within one year —see note 17).

The charity has previously recognised a liability for the net present value of deficitcontributions due under a recovery plan. At 30 June 2017 this liability amounted to E97,415. Inorder to increase this liability to meet the settlement amount noted above, an additionalpension cost of 6140,948 was recognised in the financial statements for the year ended 30June 2017 (included within support costs —see notes 8 and 11).

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(Registered Charity No 211649) - (Company No: 604838)

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