The Brightside Trust - GOV.UK

Financial statementsThe Brightside Trust

For the year ended 31 March 2017

The Brightside TrustFinancial statements for the year ended 31 March 2017

Legal and administrative information

Charity registration number 1159993

Registered office CAN Mezzanine32-36 Loman StreetLondonSE1 OEH

Trustees J D Berry

J RM HeronA JonesP Bell-Ashe

J SelbyR AndersonR EdmundsS PayneL ProctorL Byrne

J Beard

Solicitors Bates Wells Braithwaite

10 Queen Street PlaceLondonEC4R 1BE

Auditors Grant Thornton UI& LLPStatutory AuditorChartered Accountants4 Hardman Square

SpinningfieldsManchesterM3 3EB

Bankers: Natwest Bank pic180 London RoadHazel GroveStockportSI&7 4DH


Index to the financial statements

Legal and administrative information

Report of the trustees

Report of the independent auditor to the trustees

Consolidated statement of financial activities

4 —8

9 —10

Consolidated balance sheet 12

Parent Charity balance sheet

Consolidated statement of cash florvs

13

14

Notes to the financial statements 15 —25



The Trustees present their report together with the audited financial statements for the year ended 31

March 2017. The financial statements have been prepared in accordance with the accounting policies set

out on page 15.

The Financial Statements comply with the Charities Act 2011,The Trust Deed, and Accounting and

Reporting by Charities Statement of Recommended Practice applicable to Charities preparing their

accounts in accordance with the Financial Repoiting Standard applicable in the UK and Republic ofIreland (FRS102) (effective 1 January 2015),

The legal and administrative information set out on page 2 forms part of this report,

Structure, Governance and Management

The Brightside Trust was incorpoiated as a Charitable Incorpoiated Organisation (CIO) on 19January

2015 (registered charity number 1159993).The CIO became an active charity on 1 Apical 2015 when all the

activities, assets and liabilities of the former charity the Brightside Trust (registered charity number

1080243) ("the legacy charity) were transferred to the CIO. The year to March 2016 therefore represented

the first set of accounts for the new CIO. Brightside Social Enterprise Ltd was incorporated on 11

September 2015 and operates as the charity's trading subsidiary. The first accounts foi the Brightside

Social Enterprise Limited were for the period from incorporation to 30 September 2016. These accounts

therefore represent the twelve month period from 1 April 2016 to 31 March 2017 and are the first set ofconsolidated accounts for the parent charity and the trading subsidiary.

The aim of the charity and the trading subsidiary is to provide the young people that need it most with

knowledge, support and connections so that they can make confident and informed decisions enabling

them to fulfil their potential.

The trustees are appointed by the Board and serve foi a period of five years after which period they may

put themselves forward for re-appointment. The trust deed provides for a minimum of three trustees. The

aim of the board is to recruit trustees with skills and experience from a number of complementary areas

including education, government and the corporate sector. It is the intention of the trustees to meet

quarterly in order to discuss the broad strategy and areas for activity including review of major projects,reserves and risk management, Day to day management of the Trust is delegated to a chief executive with

supervision from the chairman and treasurer. The trustees who have served durIng the year are set out on

page 2.

New trustees are given a detailed induction briefing by the organisation, and are also required to attend

half a day's training at Brightside where they are briefed by members from all levels of the organisation

and are given a demonstration of the mentoring platform,

Pay and remuneration of the Chief Executive is set by the Chair of Trustees in consultation with the Board

of Trustees. The pay and remuneration of the Senior Management Team is set by the Chief Executive in

consultation with the Chair of Trustees.

The trustees have prepared and approved this Report of the Trustees and the financial statements as set

out on pages 11 to 27.



Objectives, activities, performance and future plans

Brightside has worked with 9,500 young people during the course of the year and has now supported over

80,000 young people since the organisation was founded in 2003. In 2016-17, Brightside's mentoring was

undeitaken by 3,500 volunteer mentors.

Over the last couple of yeats, Brightside has been developing a rigorous and sophisticated impact

performance management system. Following the development of a Theory of Change in 2015 identifying

desired behavioural and attitudinal changes, Brightside has developed an impact framework adopting

robust and quality-assured scales to measure these outcomes. These frameworks were intioduced across a

selection of Brightside's projects in the autumn of 2016, and the organisation is currently in the piocess ofanalysing the initial data produced.

Another major initiative has been the development of a new online mentoiing platform, designed to

ensure that design and functionality are as clear. and engaging as possible and to ensure that the Brightside

online mentoring service meets people's expectations of an online service at a time when most internet

access is conducted via mobile phone iather than through desktop computers, The new platform launched

in September 2016.

Brightside's membership of the wider Social Business Trust network is proving very positive as the

organisation scales up its growth and impact, During the year, Social Business Trust and its affiliated

corporate organisations have supported Brightside in strategic and business planning; impact

measurement; product development; pricing; marketing; legal and compliance procedures and also through

the mentoring oF senioi Brightside staff.

During the year, Brightside has worked on more than 60 separate projects throughout England and Wales.

In paiticular, we have worked with consortia of universities through the National Networks ofCollaborative Outreach programme (NNCO) in, for example, Devon and Cornwall, Greatei Manchestei,

Essex and Merseyside. In 2017, much of Brightside's focus will be on the delivery of new contiacts

working with university consortia throughout the country via the National Collaborative Outreach

Programme (NCOP).

In addition, our Bright IMowledge website —which provides information to young people on university

courses, student finance and caieeis —continues to be seen as an authoritative source of information by

young people receiving two million visitors during the year.

Brightside continues to influence national debate and priorities in relation to social mobility. Its work has

been cited in government reports published by the Department for Business, Industry and Skills, the

Department foi Education and the All-Party Parliamentary Group on Social Mobility. In addition,

Brightside's work was covered by BBCRadio, Sky News and the Times Higher Education.

In the summer of 2017, Brightside published a series of essays on widening participation in partnership

with Higher Education Policy Institute. One of the essay contributois was subsequently inteiviewed about

contextual admissions on the Today Programme on BBCRadio 4.

In order to better reflect its identity as a leading national social mobility charity, the Biightside Trust has

refreshed its brand and visual identity during the course of the year. We have also re-designed the

Brightside website —~mvw. thebri htsidetrust. oi .

Brightside will build on these foundations of nationwide reach, a new online mentoring platform and a

rigorous impact performance management system in the period ahead, with an initial priority ofdeveloping a new five year business plan designed to ensure we meet our overall ambitions of providing

evidenced, high-quality mentoiing support to young people throughout the country.



Financial review and investment policy

The group received income of $726,340 during the year from a number of sources including universities,

othei third sector organisations and corporates. Income for the year to 31 March 2018 is forecast to be in

the region of $1,100,000.

Expenditure, including direct pxoject expenditure and running costs, totalled $1,011,234. This includes

$60,558 (2016: $31,098) kom the capital designated fund to support technical development and

evaluation, and the trustees plan to invest money in these areas of activity on an annual basis.

Our investment objective is to preserve the value of capital in real terms, in order to provide funds for

future activities. Our investment is managed by Rothscluid Private Fund Management, and comprises a

holding of Accumulation Units in the Glenhuntley Portfolio Trust, We have confidence in our

Investment Manager's abilities to look after our funds wisely in ever changing financial markets, and are

satisfied with their current performance which we review quarterly.

Reserves

It is the policy of the charity to maintain free reserves at a level which equates to a minimum of six months

unrestricted expenditure. The trustees considei that this level will provide sufficient funds to cover

operational and governance costs and to allow for the long lead time kom pioject conception to securing

funding and commencing projects.

The charity holds a Designated Capital Reserve that was created by funds received kom the sale ofinvestments in prior years, An amount of income kom the investments held in the Designated Capital

Reserve will be used each year to fund investment projects for the charity.

The total funds of the group were $3,870,383 at 31 March 2017 (2016: g3,715,295). This includes

designated capital and project reserves of $3,331,098 (2016: $3,212,588), Tlus leaves net funds of$539,285 (2016: $502,707) which covers seven months operational expenditure of the group,

Risk management

The trustees have examined the major strategic, business and operational risks which the chaiity faces and

confirm that systems have been established to enable regular. reports to be produced so that the necessary

steps can be taken to lessen these risks.

Public benefit

The trustees confirm that they have referred to the Charity Commission's general guidance on public

benefit when reviewing the Trust's aims and objectives and in planning the future activities of the Trust,

These aie shown above in the section 'Objectives and activities'.



TrusteesThe present trustees (of the CIO) are shown on page 2, The trustees who served thioughout the year and

to the date of approval of these financial statements, except as noted, were as follows:

JD BerryJRM HeronA JonesP Bell-Ashe

J SelbyR AndersonR EdmundsS PayneL Proctor. (appointed 7+ December 2016)L Byrne (appointed 7+ Decembei 2016)

J Beard (appointed 7+ December 2016)

Trustees' Responsibilities Statement

The trustees are responsible for preparjng the Trustees' Report and the financial statements in accordance

with applicable law and regulations.

The Charities Act 2011 and regulations made thereunder requires the trustees to prepare financial

statements for each financial yeai in accordance with United I~gdom Generally Accepted Accounting

Practice (United IGngdom Accounting Standards and applicable law) including FRS102, the Financial

Reporting Standard applicable in the UI& and Republic of heland which give a true and fair view of the state

of affairs of the charity and of the incoming resources and application of resources, including the income

and expenditure, of the charity 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 set out in the Statement of Recommended Practice applicable to

charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the

UI& and Republic of Ireland ('Charities SORP (FRS 102)')

~ make judgments and estimates that are reasonable and prudent

~ prepare the financial statements on the going concern basis unless it is inappropriate to presume that

the charity will continue in business.



The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain

the charity's transactions and disclose with reasonable accuracy at any time the financial position of the

charity and enable them to ensure that the financial statements comply with the Chanties Act 2011 and

regulations made theieunder and the provisions of the trust deed. They are also responsible for safeguarding

the assets of the charity and hence foi taking reasonable steps for the prevention and detection of fraud and

othei irregularities.

In so far as the trustees are awaie:

~ there is no ielevant audit information of which the charity'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,

Approval

Approved by the trustees and signed on their behalf by:

JRM Heron, Trustee

lw December 2017

GrantThornton

Independent auditor's report to the trustees ofThe Brightside Trust

We have audited the financial statements of The Brightside Trust for the year ended 31 March 2017

which comprise the consolidated statement of financial activities, the consolidated and charitable

company balance sheets, the consolidated statement of cash flows and the related notes. The financial

reporting framework that has been applied in their preparation is applicable law and United IGngdom

Accounting Standards (United IGngdom Generally Accepted Accounting Practice), including FRS 102,The Financial Reporting Standard applicable in the United IGngdom and Ireland.

This report is made solely to the charity's trustees, as a body, in accordance with the Charity's

(Accounts and Reports) Regulations 2008 made undei Section 154 of the Charities Act 2011. Our

audit work has been undertaken so that we might state to the charity's trustees those matters we are

required to state to them in an auditor's report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the chaiity and the

charity's trustees, as a body, for our audit woik, for this report, or for. the opinions we have formed.

Respective responsibilities of trustees and auditor

As explained more fully in the Trustees' Responsibilities Statement set out on pages 7 and 8, 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 (UIZ and Ireland). Those standards require us

to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of 6nancial statements is provided on the Financial Reporting

Council's website at www. frc.org. uk/auditscopeukprivate.

Opinion on financial statements

In our opinion the financial statements:

~ give a true and fair view of the state of affairs of the charity and the group as at 31 March 2017

and of the group's income and expenditure for the year then ended;

~ have been propefly prepared in accordance with United IGngdom Generally Accepted

Accounting Practice; and

~ have been prepared in accordance with the requirements of the Charities Act 2011 and

regulations made thereunder.

10

6rantThornton

Independent auditor's report to the trustees ofThe Brightside Trust

INatters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us

to report to you if, in our opinion:

~ adequate accounting records have not been kept by the Charity in accordance with Section 130 ofthe Charities Act 2011; or

~ the financial statements are not in agreement with the accounting records; or

~ the information given in the financial statements is not consistent in all material respects with the

Report of the trustees.

~ we have not received all the information and explanations we require for our audit,

Tlat &~ 4k.

Grant Thornton UK LLPStatutory Auditor, Chartered AccountantsManchester

December 2017

Grant Thornton UI& LLP is eligible to act as an auditor. in terms of Section 1212 of the Companies Act

2006.


Consolidated statement of financial activities

INCOMENote

Unrestrictedand

Total funds

Unrestrictedand

Total funds

Voluntary income

Charitable activities

Other income

Income from investments

67,748

658,390

202

4,018,828

663,482

12,116

628

Total income

EXPENDITURE

726,340 4,695,054

Charitable activities (1,011,234) (771,910)

Total expenditure (1,011,234) (771,910)

Net (expenditure) /income beforegains/ losses on investment

Realised and unrealised gains and losses onrevaluation and disposal of investment assets

Net income for the year

Net movement in funds

Total funds brought forward

Total funds carried forward

13

13

13

(284,894)

439,982

155,088

155,088

3,715,295

3,870,383

3,923,144

(207,849)

3,715,295

3,715,295

3,715,295

The 2017 financial activities above include $351,536 of income and $506,627 of expenditure and

f439,982 of realised and unrealised gains relating to the parent charity. The 2016 comparatives relate

entirely to the parent charity,

The results relate wholly to continuing activities.

The accompanying notes form part of these financial statements.


Consolidated balance sheet

Fixed assetsInvestmentsTangible fixed assets

Intangible assets

31 Match2017

Note

3,400,8933,952

261,773

31March2016

3,260,9134,684

3,666,618 3,265,597

Current assetsCash at bank and in hand

Debtois

274,702259,917

140,200

531,313

Creditors: amounts falling due within one year

Net current (liabilities)/assets

Total assets less current liabilities

534,619

(330,854)

203,765

671,513

221,815

449,698

3,870,383 3,715,295

Net assets 3,870,383 3,715,295

Total funds 3,870,383 3,715,295

The financial statements were approved by the Board of Trustees and authorised for issue on i ~~December 2017 and signed on their behalf by:

Trustee



13

Parent Charity balance sheet

Fixed assetsInvestments

Tangible fixed assets

31 March2017

Note

5 3,400,893

8 3,952

31 March2016

3,260,9134,784

3,404,845 3,265,597

Current assetsCash at bank and in hand

Debtors


Net current (liabilities)/assets

Total assets less current liabilities

10

132,319560,410692,729

(72,277)

620,452

140,200531,313671,513

221,815

449,698

Net assets

Charity fundsUnrestricted funds

Total funds

4,025,297 3,715,295

4,025,297 3,715,295

13 4,025,297 3,715,295

4,025,297 3,715,295

The fmmdd statements were approved by the Board of Trustees and authoiised for issue on l~December 2017 and signed on their behalf by:

Trustee


Consolidated statement of cash Rows

2017 2016

Net cash provided by/(used in) operating activities

Net income for the period

(Gain)/ Losses on investments

Interest from investments

Decrease/(increase) in debtors

Increase in creditors

Depreciation

Amortisation

Transfer from legacy charity

155,087

(439,982)

(202)

271,396

109,039

3,573

43,352

3,715,295

207,849

(628)

(269,075)

19,699

5,556

(4,012,436)

142,263 (333,740)

Cash flow from investing activities

Inteiest from investments

Proceeds from sale of investments

Purchase of tangible fixed assets

Purchase of intangible fixed assets

Cash transferred from legacy charity

202

300,003

(2,841)

(305,125)

(7,761)

628

200,030

(2,010)

275,292

473,940

Change in cash and cash equivalents 134,502 140,200

Cash and cash equivalents brought forward 140,200

Cash and cash equivalents carried forward 274,702 140,200



15

Notes to the Financial statements

1 Principal accounting policies

Legal information

The Brightside Trust is a Charitable Incorpoiated Organisation (Charity no 1159993)and owns 100%of the issued share capital of Bxightside Social Enterprise Limited, a limited company (Company no,

09774291). Both organisations' registered office is CAN Mezzanine, 32- 36 Loman Street, London,

SE1 OEH.

The group delivers public benefit by pioviding support to young people as set out in the report of the

trustees.

Basis of preparation

The financial statements have been prepared in accordance with 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) — (Chafities SORP (FRS 102)), the Financial Repoiting Standard

applicable in the UI& and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Brightside Trust meets the definition of a public benefit entity under FRS 102. Assets and

liabilities axe initially recognised at historical cost ox transaction value unless othe+vise stated in the

relevant accounting policy note(s).

The group financial statements consolidate those of the charitable company and its subsidiary

undertaking drawn up to 31 March 2017 on a line by line basis, eliminating inter-group transactions.

These financial statements represent twelve months activities of the Bxightside Trust and the Bxightside

Social Enterpiise Limited. The 2016 numbers do not include the trading activities of the Bxightside

Social Enterprise Limited on the grounds of materiality.

The financial statements are piesented in sterling (Q.

Going concernForecasts have been prepared which disclose that the group has significant headroom to operate with

existing funds fox the next 12 months. In view of this the ttwstees have a reasonable expectation that

the group has adequate resources to continue in operational existence fox the foreseeable future, bring

a period of not less than 12 months fxom the date of approval of these financial statements, For this

reason they continue to adopt the going concern basis in the financial statements,

IncomeIncome is recognised once the charity has entitlement to the funds, any performance conditions have

been met, it is piobable that the income will be received and the amount can be measured reliably.

Where income is received for projects befoxe any work is undertaken amounts are induded within

deferred grants, income is then ieleased in line with the delivery of the projects.

Donations

Donations comprises all income from grants and donations, and includes cash donations from the

Social Business Trust. In accordance with the Charities SORP (FRS 102), volunteer time through the

Social Business Trust or otherwise, is not recognised the financial statements. Donations under Gift

Aid together with the associated income tax recoveries aie credited as income in the year in which they

axe received,

The Brightslde TrustFinancial statements for the year ended 31 March 2017

Notes to the financial statements

Charitable trading income

Charitable trading income represents amounts receivable by the charitable company for services

provided aligned with the charitable company's objectives as disclosed on pages 5 of these financial

statements,

ExpenditureExpenditure is recognised once there is a legal or constructive obligation committing the charity to the

expenditure, it is probable that settlement will be required and the amount of the obligation can be

measured reliably. All expenditure is accounted foi on an accruals basis and has been classified under

headings that aggregate all costs related to the category.

Creditors and provisions are recognised where the charity has a present obligation resulting from a past

event that will probably result in the transfer of funds to a third party and the amount due to settle the

obligation can be measured or estimated reliably. Creditors and piovisions aie normally recognised at

their settlement amount aftei allowing foi any trade discounts due.

Irrecoverable VATIrrecoverable VAT is charged against the category of resources expended for which it was incurred.

Allocation of overhead and support costsOverhead and support costs have been allocated to charitable activities.

Fixed asset investment

Investments are a form of basic financial instrument and are initially recognised at their transaction

value and subsequently measured at their fair value, using closing mid-market value at the balance sheet

date. Any realised and unrealised gains and losses on revaluation or disposals are included in the

Statement of Financial Activities.

Income from investments is included, togethei with the related tax ciedit, in the yeai in which it is

receivable.

Interest on funds held on deposit is recognised when receivable, and the amount can be recognised

reliably by the charity; this is normally upon notification of the interest paid or. payable by the bank.

Tangible fixed assets and depreciationTangible fixed assets are stated at cost, net of depreciation. Depreciation is charged on leasehold

improvements, fixtures and fittings and computers which are written off on a straight line basis overtheir estimated useful life of three years.

Intangible fixed assetsIntangible fixed assets are stated at histoiic cost less accumulated amortisation. Amortisation is charged

on a straight-line basis for software over an estimated useful life of four years.

DebtorsTrade and other debtors are recognised at the settlement amount due after any trade discount offered.

Prepayments are valued at the amount prepaid net of any trade discounts due.

Financial instrumentsThe trust only has financial assets and financial liabilities of a kind that qualify as basic financial

instruments. Basic financial instr~ments are initially recognised at transaction value and subsequently

measured at their settlement value.



Fund accountingUnrestricted funds are available to spend on activities that further any of the purposes of the charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their

discretion to set aside to use for a specific purpose.

Current and deferred taxThe tax expense for the year comprises current and deferred tax. Tax is recognised in the statement offinancial activities, except that a change attributable to an item iecognised directly in equity is also

recognised directly in equity.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted orsubstantively enacted by the balance sheet date in the countries where the Charity operates and

generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but notreversed by the Balance sheet date, except that:

~ the recognition of deferred tax assets is limited to the extent that it is probable that they will be

recovered against the reversal of deferred tax liabilities or othei future taxable profits; and

~ any deferred tax balances are reversed if and when all conditions for retaining associated tax

allowances have been met.

Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by

the Balance sheet date.

Significant adjustments and key areas of estimation uncertainty

The trustees consider. there to be no items in the financial statements where they have had to make

significant judgements in the process of applying the Charity's accounting policies or key sources ofestimation uncertainty.



Operations of trading subsidiaries

The activities of Brightside Social Enterprise Limited for the twelve month period from 1 Apnl 2016to 31 March 2017 have been consolidated as part of these accounts. The 2016 numbers do not include

the activities of the company as they were not material.

A summary of the result of the trading subsidiary is set out below:

2017

TurnoverTotal Expenditure

Deftcit for the year

342,371~498,370

(155,999)

The net assets and liabilities of the subsidiary were:2017

Fixed assets 261,773

Current assets


Net current liabilities

369,492(786,179)

(416,687)

Net liabilities (154,914)

Aggregate share capital and reserves (154,914)

The Brightside TrustFinancial statements for the year ended 31 Nlarch 2017


3 Income

2017 2016

Charitable activities

Trading activity 658,390

688,390663,482

663,482

DonationsTransfer from legacy charity

Donations received

OtherManagement charge received

67,748

67,748

4,012,436

6,392

4,018,828

12,116

Investments

Interest on cash deposits 202 628

Donations received includes cash income from the Social Business Trust of $19,703.

Consolidated analysis of charitable activities

Direct pxoject expensesPayroll expenses —direct project workPayroll expenses —administrative

Travel % AccommodationOverhead and support costs —charitable activities

Auditors remuneration (governance costs)Total Expenditure

2017

163,670357,877192,703

10,321275,590

11,073

2016

75,332344,553185,529

5,172156,824

4,500

1,011,234 771,910


20


5 Investments —Group and Company

2017 2016

Opening Balance

Transfer from legacy charity

Disposal of investments in period

Gain/(Loss) in market value of investments in period

At 31 March —at market value

3,260,913

(280,636)

420,616

3,400,893

3,668,792

(214,103)

(193,776)

3,260,913

Realised and unrealised gains on investment assets

Gain/(Loss) on disposal of investments in period

Increase/(Decrease) in market value of investments in period

(280,636)420,616

439,982

(214,103)(193,776)

(207,849

Analysis of investments

Unit Trust 3,400,893 3,260,013

Investments are stated at maiket value, the Unit Tmst is managed by Rothschild and contains a mixture ofinvestments including equities, gilts and cash, All investments are tiaded in quoted public markets.

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in

the financial review and investment policy and performances sections of the Trustees' Annual Report.

The main form of financial risk faced by the Charity is that of volatility in equity markets and investment

markets due to wider economic conditions, such as Biexit, the attitude of investors to investment risk, and

changes in sentiment incurring equities.

Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central

banks and market regulators has continued to provide for orderly trading in the markets and so the ability to

buy and sell quoted equities and stock is anticipated to continue. The Charity's investments are mainly traded in

markets with good liquidity and high trading volumes. The Charity has no material investment holdings in

markets subject to exchange controls or trading restrictions.

The Charity manages these investment risks by retaining expert advisors and operating an investment policy

that provides for a high degree of diversification of holdings within investment asset classes that are quoted on

recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial

instruments as it takes the view that investments are held for their longer term yield total return and historic

studies of quoted financial instr~ments have shown that volatility in any particular five year period will normally

be corrected.

The charity also owns one g1 share, being 100% of the issued share capital, in Biightside Social Enterprises

Limited which was incorporated on 11 September 2015.



Tax

Parent charityAs a Charitable Incorporated Organisation, the parent charity is exempt from Corporation Tax,

SubsidiaryThe company does not have a tax liability as no profit was made in the period, The directors intend totransfer any profits made to the charitable holding company, the Brightside Trust, subject to adequate

reserves being available,

The group has an unrecognised deferred tax asset of $26,000 (2016: $9,000),

Intangible fixed assets

GroupSoftware

CostAt 1 April 2016Additions

At 31 March 2017

305,125

305,125

AmortisationAt 1 April 2016Provided in the year.

At 31 March 2017

43,352

43,352

Net book value

At 31 March 2017 261,773

Net book value

At 31 March 2016 237,500

Bxightside Social Enterprise Limited has contracted an external development agency to build a new

online mentorIng platform to support the activities of the company and the parent organisation. This

was built from November 2015 and went live in September 2016, when a large number of customers

transitioned to the new platform.



Tangible fixed assets

Group and charity

CostAt 1 April 2016Additions

At 31 March 2017

Computers

132,1431,703

133,846

Fixtures andFittings

3,474

3,474

LeaseholdImprovements

6,7501,138

7,888

Total

142,3672,841

145,208

DepreciationAt 1 April 2016Charge for the year.

At 31 March 2017

130,1791 892

132,071

2,485821

3,306

5,019860

5,879

137,6833,573

141,256

Net book amount

At 31 March 2017

Net book amount

At 31 March 2016

1,775

1,964

168

989

2,009

1,731

3,952

4,684

All tangible ftxed assets are used for charitable purposes.

Debtors

Group 2017 2016

Trade debtors

Prep aymentsOther debtorsLoanAccrued income

151,65029,002

383

78,882

150,80027,800

4,772297,966

49,975

259,917 531,313

Parent charity 2017 2016

Trade debtorsPrepaymentsOther debtorsIntercompany LoanAccrued income

29,002383

527,6013,424

150,80027,800

4,772297,96649,975

560,410

The loan is due from Brightside Social Enterprise Limited the subsidiary undertaking of the charity.

531,313




Group

Trade creditorsOther taxes and social securityAccrualsDeferred revenue

2017

38,59849,34742,595

200,314330,854

2016

6,62114,197

5,601195,396

221,815

Parent charity2017 2016

Trade creditorsOther taxes and social secuntyAccrualsDeferred revenue

4,33214,78129,32123,843

72,277

6,62114,197

5,601195,396

221,815

Financial Instruments

Group2017 2016

Financial assetsFinancial assets measured at amortised cost 426,352 291,000

Financial liabilitiesFinancial liabilities measured at amortised cost (81,193) (12,222)

Financial assets measured at amortised cost comprise cash and trade debtors.

Financial liabilities measured at amortised cost comprise trade creditors and accruals.

Parent charity2017 2016

Financial assetsFinancial assets measured at amortised cost 132,319 291,000

Financial liabilitiesFinancial liabilities measured at amortised cost (33,653) (12,222)

Financial assets measured at amortised cost comprise cash and trade debtors.

Financial liabilities measured at amortised cost comprise trade creditors and accruals.

The Brightslde TrustFinancial statements for the year ended 31 March 2017

Notes to the Financial statements

12 Staff costs and trustees' remuneration —Group and company

Salaries

Social Security Costs

The aveiage weekly number of employees during the year, calculated on

full time equivalent basis was:

2017

501,099

49,481

550,580

15

2016

479,456

50,626

530,082

16

13

One employee ieceived remuneration amounting to more than $60,000 in 2017 and 2016, with

remuneration in each year in the biacket of $80,000-$90,000.

James Heron received $16,014 for financial management services piovided in the year (2016: $16,800).James Heron, was reimbursed tiavel costs of $2,013 during the year (2016: +77). No other trustees

received any payments or reimbursements of expenses from the charity in either year.

Total key management personnel compensation payable during the year was $158,950 (2016: f154,975).

Funds and reserves

Group Unrestrictedfunds

CapitalDesignated

Funds

Project Total fundsDesignated

Funds

As at 1 Apni 2016TransferNet movement in year

502,70760,568

(260,905)

3,067,167(60,568)439,982

145,421

(23,989)

3,715,295

155,088

At 31 March 2017 302,370 3,446,581 121,432 3,870,383

Parent charity Unrestrictedfunds

CapitalDesignated

Funds

Project Total fundsDesignated

Funds

As at 1 ApR 2016TransferNet movement in year

502,70760,568(4,978)

3,067,167(60,568)439,982

145,421

(125,002)

3,715,295

310,002

At 31 March 2017 558,297 3,446,581 20,419 4,025,297

Unrestiicted funds comprise those funds which the Trustees may use in accordance with the Charitable

objectives. Capital Designated Funds are allocated to provide a long term reserve from which income will

be taken each year to invest in the charity. Project Designated funds are allocated to support specific

projects in the next financial year.



14 Contingent liabilities

There were no contingent liabilities at 31 March 2017 or 31 March 2016.

Capital commitments

The trading subsidiary has capital commitments of $26,500 as at 31 March 2017 related to the building

of an online mentorIng platform which took place during 2016 and 2017.

16 Related party transactions

The charitable company has taken advantage of the exemption in Financial ReportIng Standard 102 and

has not disclosed transactions with its wholly owned subsidiaries.

Details of transactions with trustees are set out in note 12.

The Trustees consider that The Bxightside Trust had no other transactions during the year which need

to be disclosed as related patty transactions

The Brightside Trust - GOV.UK

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