Charity Registration Number 238043'9 d V l

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The Charles Wolfson Charitable Trust

Financial statements

5 April 2006
 THE CHARLES WOLFSON CHARITABLE TRUST
Company information
Governing Instrument
Deed of Trust executed on 14 July 1960

Settlors
Charles Wolfson
Lord Wolfson of Sunningdale

Trustees
Lord Wolfson of Sunningdale
The Hon Simon Adam Wolfson
The Hon Andrew Daniel Wolfson
Dr Sara Levene

Secretary
Michael Morris Franks

Correspondent
Mrs R Crawford

Address
►-~ 129 Battenhall Road
►-~ Worcester WR5 2BU

Auditors
Chantrey Vellacott DFK LLP
Chartered Accountants
Q Russell Square House
10-12 Russell Square
London
WC1 B 5LF

Bankers
Bank of Scotland
14/16 Cockspur Street
London
SW1Y 5BL

Solicitors
William Sturges & Co
Burwood House
14-16 Caxton Street
London
SW1 H OQY

Investment prope rty managers

MERJS Limited (formerly Ross Jaye Sayer & Co. Limited)
26/28 Hallam Street
London
W1 W 6NS

Charity registration number

238043

Inland Revenue reference

XN2027

1
THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' report
The trustees present their report and financial statements of the The Charles Wolfson Charitable
Trust ("the Trust") and the group for the year ended 5 April 2006, which includes the administrative
information set out on page 1.

The "group" means the Trust and Benesco Charity Limited (Benesco) and its wholly-owned
subsidiary companies, Heath Retail Holdings Limited and Heath Retail One Limited.

Reference and administrative details of the charity, its trustees and advisors

The charity number, present trustees and advisors are given on page 1.

Trustees
The trustees who held office throughout the year, unless otherwise stated, were as follows:

Lord Wolfson of Sunningdale (Chairman)

The Hon Simon Adam Wolfson
The Hon Andrew Daniel Wolfson
Dr Sara Levene (appointed 9 August 2005)

Structure, governance and management

Governing document
The Trust is a registered charity and is governed by a Deed of Trust executed on 14 July 1960.

Appointment of trustees, organisational structure and related parties

The Trust is administered by the trustees who are appointed by the settlors during their lifetime and
thereafter by the continuing trustees. They meet quarterly and receive regular reports on the group's
properties and finances from its property managers and other advisors.

The Trust is a grant-making charity which derives the bulk of its income from grants received from
Benesco, which is a registered charity and a company (limited by guarantee) whose investments are
held in property.

It is the declared policy of the trustees that the majority of the trustees of this charity must be members
of Benesco, and the majority of the members of Benesco will consist of trustees of this Trust who have
the power to appoint and remove directors, and Benesco is thereby controlled by this charity.
Because the Trust thereby controls Benesco, the trustees are presenting consolidated financial
statements including the combined assets, liabilities and income of the Trust and of Benesco and its
subsidiary companies as a group.

Risk management statement

The trustees have examined the major strategic, business and operational risks which the group
faces and confirm that systems have been established to enable these risks to be mitigated to an
acceptable level.

2
i THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' repo rt (continued)

Objectives and activities

The objective of the Trust is to apply the income to such charitable purposes as the trustees shall
select.

The policies adopted to further the Trust's objectives include the making of direct grants of money, the
provision of loans, on which the interest is waived and the provision of rent-free premises. Direct
grants of money constitute well over 95% of the charitable application of funds.

Although the trustees of the Trust and the directors of Benesco have power to apply both capital
and income to charitable purposes, the medium and long term policy has been to preserve the
capital and to expend the income, after giving consideration to the effects of inflation.

It is considered that it is not practical to make any predetermined annual allocation between the
various grant headings, especially as it is sometimes appropriate not to fully distribute in a
particular year in order to accommodate large projects which extend over more than one year.

The directors of Benesco have chosen to focus on property investment because, after allowing for
annual running costs and renewals and refurbishment, the rental income over the years tends to
keep pace with inflation, so long as the po rtfolio is well spread in appropriate properties. Income
from property does not include monies spent and recouped by way of reimbursement from lessees,
such as service charges, insurance premiums and the usual outgoings recovered.

Grant making policy

It is the trustees' normal policy not to make grants to individuals and to make grants in the UK
only to registered charities, or to hospitals and schools and similar charitable institutions. The
intention is to direct grants to the major areas listed below, especially for capital or fixed term
projects, and with pa rticular, but not exclusive, regard to the needs of the Jewish community.
This statement of objectives is not intended as a formal limitation of the way that the trustees may
exercise their discretion from time to time.
14.~
~ 1. Medicine
2. Education
3. Welfare

The group in suitable circumstances has purchased buildings to be made available to other
charities so that effectively the income which should otherwise be derived from such property, or
most of it, is foregone by way of conferring a grant or benefit to the other charities to assist them in
the work for which the group wishes to give support.

3
 THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' report (continued)

Achievements and performance

Investment policy and property report

The group's investment policy is primarily to focus on property providing a good rental income, to
enable it to support its charitable objectives, combined with long term security to ensure the
longevity of the charity.

With this in mind, supported by the services of professional property managers, the group invests to
build what it considers to be a high quality portfolio with the vast majority in commercial and non-
residential property let to business tenants. The trustees consider this policy to have been
successful over previous years and during the current year given both the income generation and
the unrealised increases in property values.

At the balance sheet date, the group's property portfolio consisted of:

1. 10 commercial holdings, all of which were freehold and which represent well over 95%
of the prope rty portfolio ; and

2. 5 properties which the group made available to other charities on a rent-free or rent-
reduced basis.

The portfolio has been built up over 29 years, the first purchase having been made in
February 1977.

The original cost of the properties, excluding those made available to other charities, at the
balance sheet date was £68,709,856 (2005: £41,874,749) against a current value of
£129,984,000 (2005: £102,370,000). The rent roll at April 2006 was £7,233,000
(2005: £6,925,000).

The trustees have continued their policy of upgrading buildings as and when required. Upgrades
~ have again been carried out during the year which have resulted in increased rental income and
increased portfolio value. Further upgrades are currently in hand which will continue to contribute
positively towards both the rental income and the capital values of the properties.

The changes in fixed assets during the year are summarised in the notes to the financial
statements. The properties held by the charitable company and its subsidiary undertakings at 5
April 2006 have been valued by the group's property managers on a market value basis at
approximately £132,359,000 (2005: £104,925,500) as compared to their total original cost of
£69,512,951 (2005: £42,884,131).

Grants made
In the year to 5 April 2006, £6,316,660 (2005: £4,189,638) has been donated by the group by way of
direct grants to operative charities. Individual donations are listed in note 20 to these financial
statements.

Major projects included medical grants to Kings College London (£886,356) - stem cell
neurodegenerative and to the Oxford Radcliffe Hospitals Charitable Funds (£2,500,000).

4
 f

THE CHARLES WOLFSON CHARITABLE TRUST

10
Trustees' report (continued)
Financial review

Net incoming resources for the group for the year, before grants payable and rentals foregone on
charitably let properties of £6,620,660 (2005: £4,189,638) are £7,030,845 (2005: £ 5,794,503).

After a surplus on revaluation of investment properties and investments of £18,456,786 (2005:

£2,849,682) and a realised surplus on sales of properties of £1,340,422 (2005: deficit of
£467,866), the net movement in funds for the year is £20,207,393 (2005: £3,986,681).

Fund balances at the year end are £144,753,753 (2005:£124,546,322) of which £140,829,524
(2005:£112,154,784) is represented by investment properties and investments, and the balance
of £3,924,191 (2005:£12,391,538) is available reserves for grant commitments and working
capital.

Reserves policy
In order to provide income to enable the group to fulfil its charitable objectives and make grants, it
is necessary to maintain and fund assets to generate this income. The group therefore must
retain unrestricted funds at least equal to the value of the property and other fixed asset
investments, together with additional funds to accommodate grant allocations for large projects
which extend over more than one year.

Plans for future periods

At the balance sheet date, the trustees had committed to support a number of projects by means of
Q grants for periods of two or three years. During previous years the trustees have committed
£6,000,000 from the group towards the theatres development on the Chelsea site of the Royal
~ Marsden Hospital. During this year stage payments of this grant of £3,000,000 have been made by
the group. The balance of this grant, together with other committed grants has been provided for in
these financial statements (see note 11 and 12).

The trustees also customarily make annual but uncommitted grants to major providers in the
educational and welfare fields and for scientific and medical research. As these grants require
satisfactory annual reports and review, medical projects being also subject to review by the Trust's
medical adviser, the grants are considered uncommi tted and have not been provided for in these
statements.

It is the trustees' intention to continue to preserve the capital, invested predominately in property,
with an emphasis on commercial rather than residential properties. Not withstanding the need to
accommodate large projects as referred to above, the trustees' current policy is to match
expenditure to incoming resources over the medium term.

Tax status

The Trust is entitled to exemption from taxation on income and capital gains to the extent that its
funds are applied for charitable purposes.

Auditors

A resolution to reappoint Chantrey Vellacott DFK LLP will be proposed at the forthcoming annual
general meeting.

5
 THE CHARLES WOLFSON CHARITABLE TRUST

Trustees' report (continued)

Statement of trustees' responsibilities

The trustees are responsible for preparing the financial statements in accordance with applicable
law and regulations. Charity law requires the trustees to prepare financial statements for each
financial year. Under that law the trustees have elected to prepare their financial statements in
accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law). The financial statements are required by law to give a
true and fair view of the state of affairs of the Trust and of the group and of the surplus or deficit
of the Trust and of the group for that period. In preparing these financial statements the trustees
are required to:

• select suitable accounting policies and then apply them consistently;

• 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;
P-0
• prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the Trust and the group will continue in existence.

Each trustee has taken all steps that they ought to have taken as trustees in order to make
themselves aware of any information relevant to the audit and to ensure that the auditors are aware
of all relevant audit information. As far as each trustee is aware, there is no relevant audit
Q information of which the charity's auditors are unaware.

~ The trustees are responsible for keeping proper accounting records which disclose with reasonable
accuracy at any time the financial position of the Trust and the group and enables them to ensure
that the financial statements comply with the Charities Act 1993. They are also responsible for
~ safeguarding the assets of the Trust and the group and hence for taking reasonable steps for the
~ prevention and detection of fraud and other irregularities.

This report was approved by the trustees on q~ 2-.~~... and signed on their behalf.

6
 THE CHARLES WOLFSON CHARITABLE TRUST

Independent auditors' report to the trustees of

The Charles Wolfson Charitable Trust
We have audited the financial statements of The Charles Wolfson Charitable Trust for the year
ended 5 April 2006 which comprise the Consolidated and Trust statement of financial activities,
Consolidated and Trust balance sheets, Consolidated cash flow statement, and the related notes.
These financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the Trust's trustees, as a body, in accordance with section 44 of the
Charities Act 1993. Our audit work has been undertaken so that we might state to the Trust's
trustees those matters we are required to state to them in an auditors' 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 Trust and the Trust's trustees as a body, for our audit work, for this report, or
for the opinions we have formed.

Respective responsibilities of the trustees and auditors

The trustees' responsibilities for preparing the trustees' report and the financial statements in
accordance with applicable law and United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accounting Practice) are set out in the Statement of Trustees' Responsibilities.

We have been appointed auditors under section 43 of the Charities Act 1993 and report in
accordance with regulations made under section 44 of that Act. Our responsibility is to audit the
financial statements in accordance with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are
properly prepared in accordance with the Charities Act 1993.

~ We report to you whether in our opinion the information given in the trustees' report is consistent
with the financial statements.

We also report to you if, in our opinion, the Trust and the group have not kept proper accounting
records, if we have not received all the information and explanations we require for our audit, or if
information specified by law regarding trustees' remuneration and other transactions is not
disclosed.

We read other information contained in the trustees' report, and consider the implications for our
report if we become aware of any misstatements within it.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the financial statements. It also includes an assessment
of the significant estimates and judgements made by the trustees in the preparation of the financial
statements, and of whether the accounting policies are appropriate to the Trust's and the group's
circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance
that the financial statements are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements.

7
 THE CHARLES WOLFSON CHARITABLE TRUST

Independent auditors' report to the trustees of

The Charles Wolfson Charitable Trust
Opinion

In our opinion:

• the financial statements give a true and fair view, in accordance with United Kingdom
Generally Accepted Accounting Practice, of the state of the Trust's and group's affairs as at
5 April 2006 and of its incoming resources and application of resources, for the year then
ended; and

• the financial statements have been properly prepared in accordance with the Charities Act
1993; and

• the information given in the trustees' report is consistent with the financial statements.

F--~
~4
~4
t~ CHANTREY VELLACOTT DFK`4LLP
O

Chartered Accountants
► Registered Auditors

✓
Qj London

Date:

8
0 THE CHARLES WOLFSON CHARITABLE TRUST

Consolidated statement of financial activities

for the year ended 5 April 2006
Unrestricted funds
General Designated 2006 2005
Notes funds funds Total Total
Incoming resources £ £ £ £

Incoming resources from generated funds

Investment income
- Rental income 2 7,395,764 - 7,395,764 6,483,582
- Bank interest 719,889 - 719,889 838,476
- Other interest 3 186,109 - 186,109 21,539
- Dividends 233,603 - 233,603 221,586

Total incoming resources 8,535,365 - 8,535,365 7,565,183

Resources expended

Costs of generating funds 4 1,362,083 - 1,362,083 1,531,767

Charitable activities 5 6,740,097 - 6,740,097 4,404,551

Governance costs 6 23,000 - 23,000 24,000

Total resources expended 8,125,180 - 8,125,180 5,960,318

Net incoming resources

rr~ for the year before transfers 410,185 - 410,185 1,604,865

Designated capital expenditure 14a

~ Movement in funds 14a 105,115 (105,115)

~
Net income/(expenditure) for the year 515,300 (105,115) 410,185 1,604,865

Gains and losses on revaluations

and investment asset disposals
Surplus on revaluation
- Investment properties 7a - 17,203,649 17,203,649 1,603,258
- Investments 8 - 1,253,137 1,253,137 1,246,424
Realised surplus/(deficit) on sale
of investment properties 14a 1,340,422 1,340,422 (467,866)

Net movement in funds 515,300 19,692,093 20,207,393 3,986,681

Fund balances brought forward 26,716,248 97,830,074 124,546,322120,559,641

Fund balances carried forward 27,231,548 117,522,167 144,753,715124,546,322

The notes on pages 14 to 28 form part of these financial statements.

9
THE CHARLES WOLFSON CHARITABLE TRUST

Trust statement of financial activities

for the year ended 5 April 2006
Unrestricted funds
General Designated 2006 2005
Notes funds funds Total Total
Incoming resources £ £ £ £

Incoming resources from

generated funds
Investment income
- Rental income 2 - -
- Bank interest 32,987 - 32,987 40,469
- Other interest 3 3,802 - 3,802 -
- Dividends 233,603 - 233,603 221,586

270,392 - 270,392 262,055

Incoming resources from
charitable activities
Grants receivable from
Benesco Charity Limited 6,000,000 - 6,000,000 3,800,000

Total incoming resources 6,270,392 - 6,270,392 4,062,055

Resources expended

Costs of generating funds 4 - - -

activities 5 6,134,026 - 6,134,026 4,036,751-Charitble

Governance costs 6 4,000 - 4,000 4,000
Total resources expended 6,138,026 - 6,138,026 4,040,751

Net incoming resources

for the year 132,366 132,366 21,304

Gains and losses on revaluations

and investment asset disposals
Surplus on revaluation of investments 8 1,253,137 1,253,137 1,246,424

Net movement in funds 132,366 1,253,137 1,385,503 1,267,728

Funds balances brought forward 73,939 6,810,239 6,884,178 5,616,450

Fund balances carried forward 206,305 8,063,376 8,269,681 6,884,178

The notes on pages 14 to 28 form part of these financial statements.

10
THE CHARLES WOLFSON CHARITABLE TRUST

Consolidated balance sheet at 5 April 2006

Notes 2006 2005
£ £
Fixed assets
Tangible assets 7a 132,359,001 104,937,398
Investments 8 8,470,523 7,217,386
Intangible assets 9 - -

140,829,524 112,154,784

Current assets
Debtors 10 3,123,219 5,893,728
Cash at bank, including deposits 10,299,688 16,353,498

13,422,907 22,247,226
Creditors: amounts failing due
within one year 11 (5,987,836) (4,556,744)

Net current assets 7,435,071 17,690,482

Total assets less current liabilities 148,264,595 129,845,266

Creditors: amounts falling due after

more than one year 12 (3,510,880) (5,298,944)

Net assets 144,753,715 124,546,322

Unrestricted funds
General funds 13a 27,231,548 26,716,248
Designated funds 14a 117,522,167 97,830,074

144,753,715 124, 546,322

The financial statements were approved by the trustees on Z~J'.~ and signed.

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Wolfs o~ I Jr )

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Trustees
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Dr Levene

The notes on pages 14 to 28 form part of these financial statements.

11
 THE CHARLES WOLFSON CHARITABLE TRUST

Trust balance sheet at 5 April 2006

Notes 2006 2005
£ £
Fixed assets
Tangible assets 7b 1 11,898
Investments 8 8,470,523 7,217,386

8,470,524 7,229,284

Current assets
Debtors 10 4,730,755 4,340,755
Cash at bank, including deposits 922,552 36,224

5,653,307 4,376,979
Creditors: amounts falling due
within one year 11 (3,093,270) (1,673,141)

Net current assets 2,560,037 2,703,838

Total assets less current liabilities 11,030,561 9,933,122

Creditors: amounts falling due after

more than one year 12 (2,760,880) (3,048,944)

Net assets 8,269,681 6,884,178

O
V
Unrestricted funds
General funds 13b 206,305 73,939
Designated funds 14b 8,063,376 6,810,239
N
~ 8,269,681 6,884,178

The financial statements were approved by the trustees on -~~.... and signed.
zaI

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Trustees

. . ... ........ . .. .
DrLevene

The notes on pages 14 to 28 form part of these financial statements.

12
THE CHARLES WOLFSON CHARITABLE TRUST

Consolidated cash flow statement for the year ended 5 April 2006
Notes 2006 2005
£ £
Net cash inflow/(outflow) from
operating activities 15a 1,847,088 (7,992,219)

Returns on investments and servicing

of finance
Dividends received 233,603 221,586
Interest received 746,005 1,009,358

Net cash inflow from returns on

investment and servicing of finance 979,608 1,230,944

Capital expenditure
Purchase of tangible fixed assets (30,533,851) (197,242)

Sale of tangible fixed assets 21,653,345 3,502,134

Net cash (outflow)/inflow from capital expenditure (8,880,506) 3,304,892

Acquisitions and disposals

Acquisition of subsidiary 15b - (1,575,462)
Cash in acquired subsidiary 15b - 141,114

Net cash outflow from acquisitions and disposals - (1,434,348)

Decrease in cash in the year 15c, 15d (6,053,810) (4,890,731)

The notes on pages 14 to 28 form part of these financial statements.

13
J THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
1. Accounting policies

The financial statements have been prepared in accordance with the Statement of
Recommended Practice, Accounting and Reporting by Charities (SORP 2005) issued in
March 2005, and applicable Accounting Standards. A summary of the more important
accounting policies which have been consistently applied is set out below.

1.1 Accounting convention

The financial statements are prepared under the historical cost convention as modified by the
revaluation of certain fixed assets.

1.2 Changes in accounting policies

In preparing the financial statements for the current year, the Trust has adopted the
presentation requirements of FRS 25 Financial Instruments: Disclosure and Presentation in
this financial year. As a result, certain items such as cash, deposits, debtors, creditors and
loans have been designated as financial instruments. However, this has had no effect on the
presentation or measurement of amounts shown in the corresponding financial statements.

Financial instruments
Financial assets such as cash and debtors are measured at the present value of the amounts
receivable, less an allowance for the expected level of doubtful receivables. Financial
liabilities such as trade creditors, loans and finance leases are measured at the present value
of the obligation. An equity instrument is any contract that evidences a residual interest in the
assets of the Trust after deducting all of its liabilities.

Basis of consolidation
The group financial statements consolidate the financial statements of the Trust and Benesco
and its subsidiary undertakings on a line by line basis for the financial year ended
5 April 2006.

Designated funds
Designated funds are as follows:

Property and investment capital fund

Realised surpluses on the disposal of investment properties and investments are transferred
to the capital fund. In the trustees' opinion this should ensure that there are sufficient funds to
guarantee the continued existence of the charity. Unrealised revaluation surpluses are also
transferred to the capital fund.

Property maintenance fund

The trustees plan in advance for substantial future commitments and provide for them by way
of appropriations from general funds to designated funds. The costs of these projects when
they arise are then charged directly to these funds.

The majority of this fund relates to cyclical refurbishment costs. Transfers are made to this
fund to provide for the expected future costs of major refurbishments as soon as the likely
timing and costs involved can be evaluated with reasonable accuracy. Provision is also made
for minor refurbishments necessary at the expiry of occupational leases, again as soon as the
likely timing and costs involved can be evaluated with reasonable accuracy.

14
THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
1. Accounting policies (continued)

1.5 Tangible fixed assets and depreciation

Investment properties
Investment properties are revalued annually and included in the balance sheet at their
market value. The surplus or deficit over book value is transferred to the revaluation fund
which forms part of the capital fund. Although this accounting policy is in accordance with
the applicable accounting standard, SSAP 19, Accounting for investment properties, it is a
departure from the general requirement of the Companies Act 1985 for all tangible assets to
be depreciated. In the opinion of the trustees compliance with the standard is necessary for
the financial statements to give a true and fair view. Depreciation is only one of the many
factors reflected in the annual valuation and the amount of this which might otherwise have
been charged cannot be separately identified or quantified.

Office equipment and motor vehicles

Depreciation is charged at the following rates:
Office equipment - 15% per annum on a reducing balance basis, or 20% on a straight line
basis
Motor vehicle - 25% on a reducing balance basis

Capitalisation policy
Individual items under £1,000 are not capitalised unless part of a larger project or asset
purchase.

Fixed asset Investments

Fixed asset investments are carried at market value. The surplus arising on revaluation is
transferred to the revaluation reserve which forms part of the property and investment capital
fund.

Income from investments

Income from investments is included, together with the related tax credit, in the income and
expenditure account on the accruals basis.

Deposit and loan interest

Interest is included in the income and expenditure account on receipt.

1.9 Provision of services

The trustees of the Trust and the directors of Benesco and its subsidiary companies receive no
remuneration for their services. Furthermore, no value has been attributed to the provision of
services by the trustees or directors.

1.10 Incoming resources and resources expended

Incoming resources, including rent and interest, are recognised when receivable. For
leasehold investment properties ground rents payable are netted against rent receivable
from that property to give a true and fair reflection of property income.

Donations and legacies are accounted for on a receivable basis. Grants payable are
recognised in full at the point at which a legal or constructive obligation arises. If these
obligations are for a period of greater than one year, the creditor for the part due after more
than one year from the balance sheet date is disclosed as such. No discount factors are
applied to such liabilities. All other resources expended are recognised as they become
payable.

15
 ,
, THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2005
1. Accounting policies (continued)

1.10 Service charge

As agents of the group, MERJS Limited (formerly Ross Jaye Sayer & Co. Limited) the group's
investment property managers, manage the service charge account on behalf of the tenants of
the group's investment properties. All costs, including those relating to the employment of 12
staff (2005: 11) are reimbursed by the tenants.

These costs and reimbursements are not included in the income and expenditure account of
the group as they are incurred solely on behalf of the tenants and consequently are dealt with
in the service charge accounts of MERJS Limited with regard to each property.

2. Investment income - Rental income

Group Trust
2006 2005 2006 2005
£ £ £ £
Rents receivable 7,285,489 6,243,943
less: ground rents (59,725) (119,450)
~--~
7,225,764 6,124,493
Charitable rent foregone 170,000 189,246 -
Charitable rent received - 13,925 -
Lease surrender and
extension premiums - 155,918 -
0
(i Total rental income 7,395,764 6,483,582 -

3. Investment income - Other interest

Group Trust
~
2006 2005 2006 2005
£ £ £ £
Loan interest receivable 21,460 21,125 - -
Other interest receivable 164,649 414 3,802 -

Total other interest 186,109 21,539 3,802

16
THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
4. Costs of generating funds
Group Trust
2006 2005 2006 2005
Property expenses £ £ £ F
Repairs, rates and other non-
rechargeable property expenses 356,444 792,640
Irrecoverable service charges 340,794 69,823

697,238 862,463

Property management expenses

Agents' management fees not
recoverable 305,765 324,969
Agents' rent review and letting fees 133,504 175,685
Legal expenses 225,576 168,650

664,845 669,304

Total property expenses 1,362,083 1,531,767

5. Charitable activities
Group Trust
2006 2005 2006 2005
£ £ £ £
Grants payable (see Note 20) 6,620,660 4,189,638 6,100,200 3,979,267
Indemnity Insurance - charity 13,686 12,786 4,687 4,687
Indemnity Insurance - trustees 521 521 521 521
Consultancy & professional fees 59,702 96,504 8,923 31,080
General office expenditure 27,307 27,004 1,582 2,338
Sundry expenses 221 89 113 35
Medical advisor's expenses 1,025 2,400 1,025 2,400
Wages and salaries - 10,445 - 10,445
Pension costs 14,001 2,000 14,001 2,000
Depreciation 2,974 3,978 2,974 3,978
Amortisation - 59,186 - -

6,740,097 4,404,551 6,134,026 4,036,751

The average number of persons employed, who were engaged in management and
administration was nil (2005: 1). No employee earned more than £50,000 in either year.

No trustees were reimbursed for any expenses as trustees during this year or the previous
year.

6. Governance costs
Group Trust
2006 2005 2006 2005
£ £ £ F-
Audit fees 23,000 24,000 4,000 4,000

17
THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
7. Tangible fixed assets

(a) Group Vehicle and

Investment properties office
Freehold Leasehold equipment Total
£ £ £ £
Cost or valuation
At 6 April 2005 98,150, 500 6,775,000 157,764 105, 083,264
Additions 30,533,851 - - 30,533,851
Surplus on revaluation 17,203,649 - - 17,203,649
Disposals (13,529,000) (6,775,000) (21,150) (20,325,150)

At 5 April 2006 132,359,000 - 136,614 132,495,614

Depreciation
At 6 April 2005 145,866 145,866
Charge for the year 2,974 2,974
Disposals (12,227) (12,227)

At 5 April 2006 136,613 136,613

Net book value

At 5 April 2006 132,359,000 - 1 132,359,001

At 5 April 2005 98,150,500 6,775,000 11,898 104,937,398

The investment properties have been valued by the Trust's property managers on a market
value basis as at 5 April 2006.

If stated under historical cost principles, the comparable amounts for the investment prope rties
would be:
2006 2005
£ £

Cost 69,512,951 42,884,131

18
THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
7. Tangible fixed assets (continued)

(b) Trust Vehicle and

office
equipment Total
£ £
Cost or valuation
At 6 April 2005 21,582 21,582
Additions
Disposals (21,150) (21,150)

At 5 April 2006 432 432

Depreciation
At 6 April 2005 9,684 9,684
Charge for the year 2,974 2,974
Disposals (12,227) (12,227)

At 5 April 2006 431 431

Net book value

At 5 April 2006 1 1

At 5 April 2005 11,898 11,898

8. Fixed asset investments

Group Trust
2006 2005 2006 2005
£ £ £ £
Market value at 6 April 2005 7,217,386 5,970,962 7,217,386 5,970,962
Surplus on revaluation 1,253,137 1,246,424 1,253,137 1,246,424

Market value at 5 April 2006 8,470,523 7,217,386 8,470,523 7,217,386

These investments are listed on the London International Stock Exchange. The Trust's
investments at 5 April 2005 consisted of ordinary shares in Great Universal Stores plc.
At 5 April 2006, as a result of the de-merger during the year of Burberry Group plc, the
Trust's investments consist of shares in both companies. If stated under historical cost
principles, the comparable amounts for the investments would be:

Group Trust
2006 2005 2006 2005
£ F- £ £
Cost 407,146 407,146 407,146 407,146

Cost represents the market value of the investments at the date when they were settled
on the Trust.

19
 THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
9. Intangible assets - Group
Goodwill
£
Cost
At 6 April 2005 and 5 April 2006 59,186

Amortisation
At 6 April 2005 and 5 April 2006 59,186

Net book value

At 5 April 2005 and 5 April 2006

10. Debtors
Group Trust
2006 2005 2006 2005
£ £ £ £
Due from managing agents 2,374,823 3,244,429
Rent arrears 269,969 451,949
Service charges recoverable 17,001 9,139
Benesco Charity Limited 4,700,000 4,300,000
Other debtors and prepayments 461,426 2,188,211 30,755 40,755

Q 3,123,219 5,893,728 4,730,755 4,340,755

~ Included within group other debtors and prepayments in the previous year was a deposit
of £1,747,084 relating to the purchase of an investment property in Llanelli, Wales, the
purchase of which was completed in May 2005.

Group other debtors and prepayments include an amount of £300,000 ( 2005: £300,000)
which is due after one year.
4S

11. Creditors: amounts falling

due within one year
Group Trust
2006 2005 2006 2005
£ £ £ £
Other taxes and social security 206,029 184,766 - 776
Other creditors 199,235 -
Accruals and deferred income 1,745,842 1,959,613 6,540 10,000
Grants committed 3,836,730 2,412,365 3,086,730 1,662,365

5,987,836 4,556,744 3,093,270 1,673,141

12. Creditors: amounts falling

due after more than one year
Group Trust
2006 2005 2006 2005
£ £ £ F-
Grants committed 3,510,880 5,298,944 2,760,880 3,048,944

20
 THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
13. General fund
2006 2005
a) Group £ £

At 6 April 2005 26,716,248 24,378,812

Net movement in funds 515,300 2,337,436

At 5 April 2006 27,231,548 26,716,248

2006 2005
b) Trust £ F-

At 6 April 2005 73,939 52,635

Net movement in funds 132,366 21,304

At 5 April 2006 206,305 73,939

14. Designated funds

a) Group
Property and investment
O capital fund
(i Realised Unrealised Property
surplus on revaluation maintenance 2006 2005
disposal reserve fund Total Total
£ £ £ £ £
At 6 April 2005 28,873,390 68,851,569 105,115 97,830,074 96,180,829

Expenditure
- revenue - - (497,443)
- capital - - (197,243)
Movement in fund (105,115) (105,115) (37,885)
Movement due to
revaluation in year 18,456,786 - 18,456,786 2,849,682
Realised (deficit)/
surplus on sale
of investment
prope rties 17,739,352 (16,398,930) - 1,340,422 (467,866)

At 5 April 2006 46,612,742 70,909,425 - 117,522,167 97,830,074

21
, THE CHARLES WOLFSON CHARITABLE TRUST
.
Notes to the financial statements for the year ended 5 April 2006
14. Designated funds (continued)

b) Trust
Property and investment
capital fund
Realised Unrealised Property
surplus on revaluation maintenance 2006 2005
disposal fund fund Total Total
£ £ £ £ £
At 6 April 2005 - 6,810,239 - 6,810,239 5,563,815

Movement due to
revaluation in year 1,253,137 - 1,253,137 1,246,424

At 5 April 2006 8,063,376 - 8,063,376 6,810,239

15. Notes to the cash flow statement

a) Reconciliation of net income for the

year to net cash ouflow from operating activities
2006 2005
£ f

Net income for the year 410,185 1,604,865

Dividend receivable (233,603) (221,586)

Interest receivable (741,349) (859,601)
Depreciation 2,974 3,978
Amortisation - 59,186
Decrease/(increase) in debtors 2,765,853 (2,722,190)
Decrease in creditors (356,972)(5,856,871)

Net cash inflow/(outflow) from operating activities 1,847,088 (7,992,219)

b) Acquisition of subsidiary
Acquisition
2005
£
Consideration paid (1,575,462)

Fixed assets 8,000,000

Debtors 35,115
Cash 141,114
Creditors (6,659,953)

Fair value of subsidiary acquired 1,516,276

Goodwill on acquisition (59,186)

22
 i

10 THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
15. Notes to the cash flow statement (continued)

c) Analysis of changes in net debt

At 6 April At 5 April
2005 Cashflow 2006
£ £ £
Cash at bank and in hand 16,353,498 (6,053,810) 10,299,688

d) Reconciliation of net cashflow to movement in net debt

2006 2005
£ F
Decrease in cash in the year (6,053,810) (4,890,731)
Net funds at the beginning of the year 16,353,498 21,244,229

Net funds at the end of the year 10,299,688 16,353,498

16. Analysis of net assets between funds

Group General Designated

Funds funds Total
£ £ £
Fixed assets 23,307,357 117,522,167 140,829,524
Current assets 13,422,907 - 13,422,907
Creditors (9,498,716) - (9,498,716)

27,231,548 117,522,167 144,753,715

Trust General Designated

fund funds Total
£ £ £
Fixed assets 407,148 8,063,376 8,470,524
Current assets 5,653,307 - 5,653,307
Creditors (5,854,150) - (5,854,150)

206,305 8,063,376 8,269,681

17. Related party transactions

These financial statements include the costs of legal expenses amounting to

£332,952(2005: £173,554) provided to the group by its solicitors William Sturges & Co, of
which M M Franks, company secretary of Benesco Charity Limited, is a partner. This
represents professional fees charged at commercial rates. £225,576 (2005: £160,688) is
included.in direct property expenses and the balance of £107,376 (2005: £12,866), which
relates to the sale of assets, has been set against the sale proceeds.

23
. THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
18. Subsidiary undertakings

Interests in group undertakings at the balance sheet date are as follows:

Proportion of nominal
Description value of issued
Country of of shares shares held by
Name of undertaking incorporation held Group Trust

Benesco Charity Limited England (See note below)

Heath Retail Holdings Limited England £1 Ordinary 100% 100%
Heath Retail One Limited England £1 Ordinary 100% -

Benesco Charity Limited is a company limited by guarantee. The company considers The
Charles Wolfson Charitable Trust to be its holding organisation.

The principal activity of Benesco Charity Limited continued to be the management of

funds invested mainly in property to raise money for distribution to charity.

On 9 December 2004 Benesco Charity Limited acquired Heath Retail Holdings Limited
and its wholly owned subsidiary undertaking Heath Retail One Limited.

19. Capital commitments

Group Trust
2006 2005 2006 2005
£ £ £ £
Committed to but not provided for
in the financial statements 151,260 105,115

24
• THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
20. Donations

Medical research & facilities £

Asthma UK 25,000
Beds and Northants Multiple Sclerosis Centre 3,700
British Dyslexics 1,000
British Friends of Arad Medical Centre 10,000
British Stammering Society 1,000
Connect (Aphasia) 50,000
Cure Parkinsons Trust 100,000
Diabetes UK 1,000
Foundation for the Study of Infant Deaths 5,000
Fund for Addenbrookes 150,000
Hemi Help (Cerebral Palsy) 2,000
Institute of Complementary Medicine 141,470
Kings College London (Cerebral Palsy) 50,000
Kings College London (stem cell Neurodegenerative) 220,000
Lee Smith Research Foundation 5,000
Noah's Ark 7,500
Osteopathic Centre for Children 5,000
Oxford Radcliffe Hospitals Charitable Fund 5,000
Speech Language & Hearing Centre 10,000
Tsad Kadima (for brain damaged children) 5,000
University College London (Biochemistry) 24,350
University of Oxford - Pharmacology 28,368
University of Oxford - Surgery 71,846

922,234

Education £
Anglia Polytechnic University 18,000
Avondale Extra 1,000
Brasenose College 35,000
British Friends of Bar Ilan University 75,000
Chicken Shed Theatre Trust 5,000
Clifton College 2,000
Federation of Synagogues 750
Holocaust Educational Trust 25,000
Huntingdon Foundation 250,000
Institute for Policy Research 30,000
Jewish Learning Exchange 10,000
Jewish Music Institute 500
Jews Free School 2,750
London Jewish Cultural Centre 15,000
Mandelbaum Trust 15,000
North West London Jewish Day School 5,000
Rosh Pinah Jewish Primary School 20,000
Roundhouse Trust 50,000
School Aid 15,000

575,000

25
 I

THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
20. Donations (continued)

Welfare £

AISH Hatorah 150,000

British Friends of the Jaffa Institute (for children) 5,000
Business Opportunities 250
Central Synagogue General Charities Fund 10,000
Changing Faces 1,000
Children's Charity 75,000
Civitas 10,000
Community Security Trust 60,000
Conference of European Rabbis 300
Council for Christians and Jews 45,000
Foundation & Friends of Royal Botanic Gardens Kew 41,000
Friends of Bnei Akiva 5,000
Headway 1,500
Hillel Foundation 2,000
Home Farm Trust 2,000
Hospital Kosher Meals Service 1,000
1. Rescue 5,000
Institute of Economic Affairs 10,000
Jewish Blind Society 55,000
Jewish Care 350,000
Jewish Child's Day 500
Jewish Museum 50,000
London Zoo 10,000
Maccabi GB 1,000
Magen David Adorn 2,000
Maggs Day Centre 500
Mentor 10,000
Natural History Museum 1,000
North London Hospice Group 5,000
Ohel Sarah 2,500
Padstow Sea Cadets 2,000
Racing Welfare 1,000
Rainbow Trust 5,100
RNLI 250
Social Affairs Unit 10,000
SSAFA Forces Help Central Office 250
St. Elizabeth's Centre 5,000
St. Raphael's 1,000
United Trusts 30,000
Westminster Children's Society 10,000
World Jewish Relief 2,000
ZSV Trust 500

978,650

26
 ❑

4OF THE CHARLES WOLFSON CHARITABLE TRUST

Notes to the financial statements for the year ended 5 April 2006
20. Donations (continued)

Other £

Benevolent Aid Fund (see page 28) 89,500

Provision for committed future grant payments

Kings College London (stem cell neurodegenerative) 666,356

Tavistock Trust for Aphasia 368,460
Oxford Radcliffe Hospitals Charitable Funds 2,500,000

3,534,816

Total - Trust 6,100,200

Other £

Jewish Educational Fund 304,000

Child Bereavement Trust 21,460
Beth Jacobs School 25,000

350,460

Rentals foregone on charitably let properties £

B'nai Brith Hillel 149,000

Family Welfare Association 21,000

170,000

Total - Group 6,620,660

27
 THE CHARLES WOLFSON CHARITABLE TRUST
,

Notes to the financial statements for the year ended 5 April 2006
20. Donations (continued)

Distributed by the Benevolent Aid Fund £

Food Lifeline 500

Jewish Marriage Council 500
Changing Faces 1,000
Central Synagogue 5,000
Children of Russia Federation 1,500
Institute of Economic Affairs 2,000
Friends of Israel Sports Centre of Disabled 5,000
Back to Work 1,000
King Edward VII Hospital 5,000
Kehalla Project of United Synagogue 1,000
Constable Education Trust 5,000
Three Choirs Festival 8,000
Tavistock Fund for Aphasia 10,000
St. Richard's Hospice 5,000
Dyson Perrins Museum 5,500
Elgar Foundation 5,000
Council for Beautiful Israel 5,000
Norwood 5,000
Feneley Library 1,000
Wormwood Scrubs Pony Centre 1,000
Israel Diaspora Trust 2,000
Listening Books 5,000
East Sussex Association for the Blind 5,000
IMS Prussia Cove 500
Dogs for the Disabled 500
Mencap St. John's 500
Noah's Ark 1,000
Perdiswell Young Peoples Club 2,000

89,500

28