Annual Report 2018
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The Dulwich Estate Annual Report 2018 The Dulwich Estate Annual Report 2018 1 2 The Dulwich Estate Annual Report 2018 Contents Chairman’s statement 05 Chief Executive’s foreword 06 Trustees and administrative information 07 Property development 08 Property maintenance 09 A word from our beneficiaries 10 - 13 Who we are 14 2018 financial position and performance 15 Our history and background 17 Trustees’ report 18 - 21 2017-2018 year in review 22 - 23 Independent auditors report to the board 24 - 25 Consolidated statement of financial activities 26 Charity statement of financial activities 27 Consolidated summary income and expenditure account 28 Consolidated balance sheet 29 Charity balance sheet 30 Consolidated cash flow statement 31 Notes to the financial statements 32 - 47 The Dulwich Estate Annual Report 2018 3 4 The Dulwich Estate Annual Report 2018 Chairman’s statement Welcome to our new style annual report which brings together both financial and impact reporting, as part of our improved communications to broaden understanding of the charitable work that we support at The Dulwich Estate. Through the responsible stewardship of the Estate we have achieved strong financial returns for our beneficiaries. The £10m capital distribution announced last year was paid to our beneficiaries in April 2017, and together with the income distribution has enabled the schools, The Dulwich Almshouse Charity, and the Chapel to deliver greater charitable impact for young and old, increasing the numbers of means-tested bursaries, widening educational opportunities, improving student facilities and providing invaluable services. As well as supporting our beneficiaries, I am committed to enhancing Dulwich as a thriving, attractive neighbourhood. The Scheme of Management helps to maintain the distinctive character of the area, with its array of well-maintained housing and wonderful green spaces to enjoy. During the past year two much-loved flagship pubs have reopened following extensive refurbishment: The Crown and Greyhound in Dulwich and The Half Moon in Herne Hill, which has won two industry accolades for quality and service, including Greater London Pub of the Year 2018. On the former Dairy Site at Croxted Road, we have completed a new development which provides a state-of-the-art health centre, pharmacy, flats and shops. We believe these will bring a significant boost to the community at West Dulwich. The renovation of two shops in Dulwich Village, as part of our ongoing investment in the area, will improve the local food offering, and we are pleased to welcome as a first step, the independent butcher The Proud Sow. Further investment is planned across the Estate. The Board remains committed to supporting The Dulwich Almshouse Charity to secure a new almshouse on a suitable site, providing valuable sheltered housing for the elderly in need in our community. Our achievements are made possible by the Estate’s able and hardworking staff. I would particularly like to thank John Major, our outgoing Chief Executive who retired after 19 years of dedicated service to the Estate. In January we welcomed Simone Crofton who brings a wealth of skills in place-making and charity leadership from her previous roles, including that of Chief Executive of The Borough Market Trust. I would like to express my thanks also to Michael Maunsell who stepped down as a Trustee and to Patricia Cox who joined the Board during the year. We look forward to celebrating in 2019 our 400th anniversary. We are excited about the future, about the real difference we can make both to the area and to our beneficiaries, and the opportunities ahead to build on the legacy of our founder, Edward Alleyn. Nicola Meredith, Chairman of Trustees The Dulwich Estate Annual Report 2018 5 Chief Executive’s foreword I’m delighted to have joined an organisation which has helped make Dulwich and the surrounding areas, an idyll for lovers of the great outdoors, in addition to one of the most sought-after residential areas of London. At the same time, The Dulwich Estate has delivered on its founding principles of supporting educational opportunity, sheltered homes for the elderly and a community chapel of historic interest. I want to build on this legacy, through broad and deep partnerships. Working together, we can continue our vital support for young and old, while bringing our outstanding facilities, diverse high streets and amazing local history to as wide an audience as possible. We are lucky to be home to a vibrant mix of independent traders with active trade associations, providing strong retail offers, thriving local economies and a real community backbone. This year we worked with the newly formed Dulwich traders’ association. I look forward to supporting their efforts by bringing in the best independent and popular shops, cafes and retailers across the Estate, and inspiring visitors and residents alike with a distinct experience. Dulwich is an area of outstanding beauty. It is home to more than 40 acres of allotments, 69 acres of ancient woodland, 12 playing fields. The area exceeds Southwark’s natural greenspace standard threefold – and this is reflected in high satisfaction ratings in residents’ surveys. Our partnership with the London Wildlife Trust helps manage the largest remaining areas of ancient woodland in London, which includes Sydenham Hill Wood and Dulwich Wood. This work protects wildlife and trees but also increases access to the woodland for visitors, through guided walks. We can achieve more of these combined objectives in the year ahead. I look forward to enabling our beneficiaries to continue providing outstanding educational and housing support at each end of the generational spectrum. Together they provide hundreds of means-tested bursaries, educational programmes, housing help for those most in need, and a hub of historic and religious interest. Our job is to enable life opportunities and create exceptional spaces, suited to the way we live today while building for the future. It’s an exciting time in our evolution. Simone Crofton, Chief Executive 6 The Dulwich Estate Annual Report 2018 Trustees, executives and advisers Trustees Those who served during the period as members of the Board of the incorporated Trustees of The Dulwich Estate were: Trustee Nominated by Chairman Nicola Meredith, BA (Hons), FCCA The Governors of James Allen’s Girls’ School Deputy Chairman Dr Andreas Köttering, DPhil, MSc, BSc The Governors of Dulwich College Chairman of the Chapel Committee Roger Westbrook, CMG, MA Archbishop of Canterbury P Martin Bagley, BA (Hons) Co-optative Iain Barbour, BSc (Hons), ACIB (to 1.4.2017) The Governors of Alleyn’s School Dr Irene Bishop, CBE, BEd, MA, LLD The Governors of Dulwich College Patricia Cox, BEM, LLB (from 1.8.2017) The Dulwich Almshouse Charity John Cruse, BSc (Hons) The Central Foundation Schools of London Catherine Jeffrey, MA, MA Co-optative Michael Maunsell, MA, LLB (to 31.7.2017) The Dulwich Almshouse Charity David Miller, MA The Governors of James Allen’s Girls’ School Richard Pinckard, BSc (Econ), FCA The Governors of Alleyn’s School Sarah Slater, BSc (Hons), MRICS Co-optative Simon Taylor, FRICS The President of the Royal Institution of Chartered Surveyors J Russell Vaizey, MA, FCA St Olave’s & St Saviour’s Schools Foundation Peter Yetzes, BA, JP (from 2.4.2017) The Governors of Alleyn’s School Executives Chief Executive Simone Crofton (from 15.01.2018) John Major, FCA (to 14.01.2018) Director of Property Adrian Brace, MRICS Director of Finance Howard Bratter, MA, CPA, CGMA Principal Building Surveyor Simon Hoare, MRICS Principal professional advisers Statutory auditor Kingston Smith LLP, Devonshire House, 60 Goswell Road, London, EC1M 7AD Bankers Barclays Bank Plc, 1 Churchill Place, Canary Wharf, London, E14 5HP Investment managers Sarasin & Partners LLP, 100 St Paul’s Churchyard, London, EC4M 8BU Legal advisers Charles Russell Speechlys LLP, 5 Fleet Place, London, EC4M 7RD Property consultants Daniel Watney LLP, 165 Fleet Street, London, EC4A 2DW Registered charity number 312751 Contact The Old College, Gallery Road, London SE21 7AE Tel: 020 8299 1000 Fax: 020 8693 2456 E-mail: [email protected] www.thedulwichestate.org.uk The Dulwich Estate Annual Report 2018 7 Property development The Dulwich Estate’s income comes from its investment property portfolio and other income generating sources. We would not be able to fund our charitable objectives without keeping a close eye on these assets. The largest income contribution continues to come from our portfolio of commercial and residential property. The property income is derived from a variety of uses: industrial (9%), retail and leisure (43%), educational (8%), residential (39%), and other miscellaneous uses including garages and allotments (1%). We seek to retain and secure long-term income from our portfolio and have supported new, expanding or relocating businesses by offering them attractive, flexible lease terms to contribute to the local economy. This has not been easy with market uncertainty following the Brexit vote in June 2016 and the business rates revaluation that came into effect in April 2017. Occupation of our retail premises remains strong with businesses generally keen to commit to new leases. When a unit becomes vacant we target specific retailers to complement the existing retail mix in each of our commercial parades. Our aim is to enhance customer choice and to create an exciting, high quality, sought after retail offer. This can result in longer void periods and in these instances we may introduce a “pop up” tenant into the shop, which adds vibrancy and interest to our retail areas. This year we will work closely with the traders associations in Dulwich, West Dulwich and Herne Hill. We will continue to build positive relationships with our tenants and residents, discussing with them the issues that impact them and the fabric of the Estate. We are working hard to ensure good engagement with different interest groups and residents’ associations, through a variety of measures.