TRUSTEES' REPORT AND ACCOUNTS 2022 31
2022
£m
2021
£m
2020
£m
2019
£m
2018
£m
Total income 152.1 151.8 116.5 130.7 142.0
Net (expenditure)/
income (*)
15.8 44.4 (24.5) (8.1) (23.7)
Net movement
in funds
14.1 70.5 (28.8) (17.2) (5.7)
(*) total net income defined as income after expenditure and the net
gains/losses on investments
In 2022, the group consolidated the financial turnaround initiated
in 2021. The table below provides a five-year summary of the
consolidated Statement of Financial Activities (SOFA) and shows
that we have significantly improved our financial position in the
context of a difficult operating environment.
The Statement of Financial Activities
The group surplus generated in 2022 reflects the strengthening
of the financial health of the organisation. It can be explained
by a number of different factors.
l It was another solid year for legacy income, with high-value
notifications and progress towards the resolution of the
delays at the Probate Registry. Consolidated income totalled
£152.1 million (2021: £151.8 million).
l The RSPCA benefited from £7.6 million gains on disposal
of property assets, including our former head office at
Southwater, West Sussex.
l Expenditure on charitable activities across the group
increased to £104.4 million (2021: £93.2 million), a planned
increase as we return to higher levels of activity following
the pandemic years.
l A loss on investments of £9.6 million (£8.0 million gain in 2021)
reduced the operating surplus, but still left the organisation
with a positive net movement in funds.
l An actuarial loss on the pension scheme of £1.7 million
compared to a gain in 2021 of £26.1 million.
Funds in the group increased by £14.1 million (2021: increase of
£70.5 million), while funds in the charity increased by £13 million
(2021: increase of £69.8 million).
The RSPCA-only surplus post-actuarial loss for the year, as
reported in the charity Statement of Financial Activities, was
£13.0 million (2021: surplus £69.8 million).
The balance sheet
Overall the group's total funds for the year were £274.5 million
(2021: £260.5 million).
Fixed assets reduced marginally by £0.2 million. The £17.5 million
reduction in tangible fixed assets from disposal of former
animal centres, the former head office building at Southwater,
and pensioner and shared equity properties was offset by an
increase in investments of £17.6 million.
Current assets increased by £13.0 million shared equally
between cash and debtors. Cash balances have been boosted
by positive net operating results and strong legacy cash income,
while the debtor balance increases are primarily driven by
higher legacy income accruals. Short-term creditors reduced
marginally, by £1.0 million, mostly due to improvements in
processing operations.
As a result, net current assets increased by £14.0 million year
on year.
The group's cash flows were atypical in 2022 with strong cash
inflows in the first half of the year from the sale of property
assets. Overall the group's cash position increased by £7.4 million
to £30.8 million at the end of 2022.
Future performance
Financial sustainability is a key priority for the RSPCA and we
have reviewed our reserves policy to give consideration to the
current financial risks we face. The excellent result in 2022 will
allow us to designate further funds to support the delivery
of our ambitious strategy; to grow income, modernise the
organisation and maximise the impact for animal welfare.
Looking ahead, we continue to monitor the tragic events in
Ukraine and their knock-on impact on the global economy.
The predicted recession in the UK may adversely impact
income generation.
The cost-of-living crisis fuelled by inflationary pressures and
high energy prices is likely to affect donation income as people
necessarily restrict their outgoings. It is also impacting our
own costs and those of anyone managing or caring for animals.
Our 'perfect storm' plan in the shorter term, and the medium-
to-long-term planned investment in growing engagement and
income generation respond to those risks.
Market volatility has impacted our investments in 2022 and
the trend is likely to continue in the foreseeable future. We
are working with our advisers to consider whether we need
to make any changes to our investment strategy as a result.
We are confident that, despite these challenges, we will
continue to provide our critical services for animals in need.
Financial review