the thoroughbred breeders' association · 2017. 8. 10. · the thoroughbred breeders'...

Registered number: 07073259Charity number: 1134293

THE THOROUGHBRED BREEDERS' ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016



CONTENTS

Page

Reference and Administrative Details of the Charity, its Trustees and Advisers 1

Trustees' Report 2 - 11

Independent Auditors' Report 12 - 13

Statement of Financial Activities 14

Balance Sheet 15

Cash Flow Statement 16

Notes to the Financial Statements 17 - 32



REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERSFOR THE YEAR ENDED 31 DECEMBER 2016

Trustees Julian Richmond-Watson, ChairmanSamuel Bullard (appointed 1 November 2016)Anthea Gibson FlemingPaul Greeves, Deputy ChairmanSam Hoskins (retired 5 July 2016)Nicholas Jones (appointed 5 July 2016)Edmond MahonyBryan MayohPeter MendhamPhilip Mitchell (resigned 20 July 2016)Philip NewtonEdward VouteRobert Waley-Cohen (appointed 5 July 2016)

Company registered number

07073259

Charity registered number

1134293

Registered office

Stanstead House, 8 The Avenue, Newmarket, Suffolk, CB8 9AA

Chief Executive Officer

Louise Kemble (to 30 November 2016)

Independent auditors

Peters Elworthy & Moore, Salisbury House, Station Road, Cambridge, CB1 2LA

Bankers

Weatherbys Bank Limited, Sanders Road, Wellingborough, Northants, NN8 4BX

Solicitors

Taylor Vinters, Merlin Place, Milton Road, Cambridge, CB4 0DP

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TRUSTEES' REPORT


The Trustees present their annual report together with the audited financial statements of The ThoroughbredBreeders’ Association (the TBA), (the company) for the 1 January 2016 to 31 December 2016. The Trusteesconfirm that the Annual Report and financial statements of the company comply with the current statutoryrequirements, the requirements of the company’s governing document and the provisions of the Statement ofRecommended Practice (SORP), applicable to charities preparing their accounts in accordance with theFinancial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January2015), as amended by Update Bulletin 1 (effective 1 January 2016).

Since the company qualifies as small under section 383, the strategic report required of medium and largecompanies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is notrequired.

OBJECTIVES AND ACTIVITIES

Policies and objectives

The object of the charity is:

To encourage by means of the provision of educational or research facilities or otherwise, the science ofproducing and improving the Thoroughbred horse in Great Britain.

Strategies for achieving objectives

To help the TBA to achieve its mission, the three main strategic objectives are:

Education and Training

To provide support and direction for the Thoroughbred Breeding Industry’s education and training requirementsvia provision of a dedicated member of staff supported by a sub-committee with specialist knowledge ofthis field. To work with recognised training providers to offer appropriate training courses for members of thepublic wishing to secure a career in the Industry and disseminate education, training and employment legislationinformation to breeders and members of the public via information in the monthly magazine the ‘ThoroughbredOwner & Breeder Incorporating Pacemaker’, on the TBA website and via presentations and seminars.

Veterinary Research

To identify and address the health and welfare requirements of the Thoroughbred horse, with particularclose attention to veterinary science in areas such as improvement in practices associated with the breedingand the rearing of Thoroughbred horses with a view to producing an animal of sufficient fitness and soundnessto withstand the requirements of a career in racing. The charity also funds research and support into therespective challenges of equine disease avoidance and treatment. It also acts as a link between the membersof the breeding industry and scientific academies to ensure that research work is focused on providing practicaland cost effective benefits where most needed and to fund appropriate research work accordingly. The charityliaises with overseas breeding organisations and pharmaceutical companies to enhance research and theproduction of vaccines and medicines for the thoroughbred horse. Research on the premature loss of foals hasnow commenced with financial support from the TBA.

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TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 DECEMBER 2016

Promotion of Awareness of the breed

To promote the attractiveness of British bred and reared horses to British and overseas buyers, therebyensuring international awareness of British produced stock. In particular, to provide support, advice andfunding, to encourage the production and testing of the female racehorse with a view to improving the breed.

In a broader context, to generate interest in the business of breeding and rearing Thoroughbred racehorses,with a view to encouraging a wider awareness of the attractiveness of horseracing as a quality sport providingentertainment to the general public.

Programme related investments

The TBA and the Racehorse Owners Association formed a mutual trading company in 2005 for the publicationand circulation of the magazine 'Thoroughbred Owner and Breeder, incorporating Pacemaker'. All incomeand expenditure for the company is divided between the two Associations, with magazine production anddistribution costs shared as a percentage of respective membership numbers. The TBA's investment in thecompany is accounted for as an unquoted programme-related investment (see note 15 for details).

ACHIEVEMENTS AND PERFORMANCE

Review of activities

The Charity’s performance and its achievements in the 12 months to 31 December 2016 continued to bedetermined by its principal source of funding via a voluntary levy on bloodstock sales. Income increased in 2016and the Charity's overheads continued to be carefully managed.

The Association continued its commitment to monitor equine related disease outbreaks and ensure the welfareof the Thoroughbred horse; to follow its Education and Training objectives, and to deliver Bloodstock Industrysupport through a number of measures. Lobbying the Government and the European Commission to raiseawareness of the economic value of the Industry to the rural economy and in terms of overseas trade tomaintain inclusion in rural support measures and protect the market for British Thoroughbreds remained vitalactivity.

In 2016 the Board introduced ‘THISFILLYCAN’ initiative, and supported the British European Breeders Fund(BEBF) in introducing the Fillies & Mares Breeders Series. The TBA introduced a bonus prize of £25,000 in theform of a Stallion Nomination bonus in the finals at Newmarket.

Two small breeders’ races for horses by stallions standing at £15,000 or less were introduced with TBAsponsorship.

The TBA continued to support the work following on from its ‘Stayers and Staying Races’ study and workedclosely with the British Horseracing Authority (BHA) to continue the programme.

An owners’ guide for the covering season and foal scoping practice improvements at the sales were bothinitiatives that enhanced welfare and best practice for TBA members and the thoroughbred.

The TBA continued to work with overseas breeders’ organisations the European Federation of BreedersAssociation and the International Thoroughbred Breeders Federation to ensure that pharmaceutical companiesunderstood the importance to members and potential advantages in supporting research and production of EHVand other vaccines for the thoroughbred.

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Education and Employment

In 2016 The TBA contributed £435,697 (£262,795 in 2015) towards Education and Employment activity. TheAssociation employs a full time Education and Employment Manager, whose primary role is to implement theeducation and training objectives of the TBA under the direction of the Education and Employment Committee. In 2016 the TBA organised a number of educational events including two separate one-day seminars atNewmarket and Haydock, which were free to members, and attracted a total of 220 delegates. Horsemanagement and veterinary topics covered included genetics, infectious diseases, nutrition, growth anddevelopment of the young Thoroughbred, pasture management, parasite control, and development of the hoof.The TBA also sponsored a one-day course entitled ‘The Foal: weaning to sales’ sales; which covered theweaning process, hoof care, nutrition, health and welfare and preparation for the sales. A new two-day courseon supervisory skills for stud staff was held in Newmarket, and a one day course on the management of thebroodmare took place in the South West region. These courses attracted a total of 65 delegates. The TBAAnnual Stud Farming Course in December attracted 29 stud delegates from the UK, Ireland, Germany andHong Kong, who spent an intensive three days learning from veterinary and bloodstock experts on subjectsranging from reproductive management of the mare, through care of the neonate to management of limb andfoot deformities. Qualifying TBA courses were endorsed by the industry Awarding Body 1st4Sport.

The TBA also provided £70K of funding towards the National Stud Apprenticeship course, which recruits youngpeople for entry level training and access to the Thoroughbred breeding industry, and includes a period of workplacement leading towards achievement of a Level 2 Diploma in Racehorse Care (Breeding). A programme ofvisits and presentations to approximately 400 students at equine colleges also took place, with the aim ofencouraging participation in, and increasing knowledge about, the Thoroughbred breeding industry and thecareers within it.

In support of employers, the TBA provided employment law, pensions and health and safety guidance, madeavailable through the TBA website or by direct mail. The TBA also recognised and rewarded stud staff for theircontribution to the industry through its own Stud Staff Award Scheme which culminated in an Annual Awardbeing presented to an employee at the TBA Awards Evening. Throughout the year, the Employment andEducation Manager represented the breeding sector on racing industry education and welfare committees, toensure that breeders and their needs were included in industry education and welfare strategy development andtactical activities.

The Thoroughbred Club

Now in its second full year, The Thoroughbred Club continues to grow in stature. Currently with 262 fullmembers, as well as 175 associate members, TTC delivered four main events throughout 2016. Members wereinvited to The Royal Studs, York Racecourse, Dan Skelton’s yard and to Dalham Hall. In addition to theserecreational events, in co-ordination with the TBA a Careers Course was held in November 2016 which was wellattended by almost 100 candidates. From this, many have continued into employment within the industry with amost notable candidate placing at Overbury Stud, one of our supporting partners. The club continued to workclosely with racecourses, most notably Ascot and Newmarket, to offer members discounts on major eventssuch as the Guineas Festival and Royal Ascot.

Veterinary Research

IIn 2016, the TBA contributed £363,664 (£235,485 in 2015) in support of veterinary research. The TBA'sVeterinary Committee worked to implement its objectives which included the steering and funding of veterinaryresearch, surveillance and control of infectious diseases and the provision of information, advice and guidanceto TBA members on relevant veterinary matters via courses, seminars and articles in the organisationmagazine. The TBA also participated in meetings, and maintained close links with, wider Thoroughbred racing

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and breeding organisations including the British Horseracing Authority (BHA), the Horserace Betting Levy Board(HBLB), the European Federation of Thoroughbred Breeders (EFTBA) and the International ThoroughbredBreeders Federation (ITBF), ensuring that the British breeding industry remains apprised of all veterinarydevelopments at a national and international level.

TThe TBA provided £50,000 towards the work of the AHT's Infectious Diseases Service (IDS), and alsomaintained its on-going commitment to provide a contingency fund should there be a major outbreak of anequine infectious disease in Great Britain. 2016 proved to be an extremely difficult year with outbreaks ofEHV1-4 causing abortion on a number of stud farms. The TBA supported its members by subsidising post-mortem costs, and disseminating relevant information and guidance. The TBA also worked with the HBLB toreview and produce the industry Codes of Practice on Equine Infectious diseases, a voluntary set of codes usedto protect the industry against specific diseases affecting stud farms with the potential to compromise horsewelfare and disrupt industry activity. The TBA continues to print and distribute hard copies to its members.

The TBA continued to fund veterinary research through its collaboration with the Horserace Betting Levy Board(HBLB). A one year ‘pilot’ project to assess the umbilical cord by Doppler ultrasonography during pregnancy inThoroughbred mares commencing in 2015 was completed in 2016. The project succeeded in identifying thatDoppler ultrasonography has the potential to be used successfully to monitor umbilical blood flow whenassessing equine foetal health, which in turn it is hoped will help to identify mares at risk of abortion due totwisted cords, a common cause of abortion diagnosed in the Thoroughbred mare. A one year project funded bythe TBA to identify prevalence of exposure to Lawsonia intracellularis (a bacterium causing debilitating intestinaldisease in young horses) amongst foals was also completed in 2016. Results indicated a peak time forexposure to the bacteria as being between September and January, and the highest risk time for foals todevelop clinical disease occurring between 6 – 9 months of age. This information will help to inform screeningpolicies and optimise the timing of vaccination. A three-year post-doctoral research project co-funded by theTBA (£117,000 over three years), the European Breeders Fund and the HBLB entitled "Equine host-parasiteinteractions on Thoroughbred Studs", commenced in September 2016. There is increasing resistance ofparasites to existing anthelmintics, making this project of key importance to the thoroughbred breeding industry,and the wider equine sector.

Promotion of Awareness of the Breed

The TBA has a clear responsibility to promote the interests of the British Bloodstock Breeding Industry, bothhome and abroad. This is dealt with via traditional media and also embracing the fast developing intranetopportunities via our website, Twitter and Facebook. This past year has seen a focus upon the promotion of thevalue opportunity in Fillies and Mares as racing prospects under both codes, with the #thisfillycan and MareOwners Prize Scheme (MOPS) campaign, both of which have seen some success; they are on-going initiativesand are viewed as essential for the viability of the Industry. The promotion of British Bred Group and Gradedwinners is provided with a joint initiative with Great British Racing International (GBRI) that ensures themessage of the success of British-bred horses is seen far and wide. In the course of the year other smallerfocused campaigns have been undertaken where specific targets have been identified and these have includedthe now highly successful European Breeders’ Fund (EBF) Fillies and Mares series. National Hunt mares benefitted from a co-sponsored EBF/TBA Mares’ Novice Chase series qualifiers andfinale. The finale featured a Listed Chase at Cheltenham on 14th April 2016 and the day also featured a TBAsponsored Mares’ Only Listed Hurdle race. The TBA and EBF joint sponsored two other significant races in thecalendar in 2016, including a Mares´ Standard Open National Hunt Flat Race (Listed Race) at Sandown on 12thMarch and the Mares Only NH Novices Hurdle Finale at Newbury on 2nd April. The TBA was also the solesponsor of a Mares’ Only Listed Hurdles race at Newbury in November. The majority of these contests werestaged on feature race-days providing valuable opportunities and also highlighting the attraction of owning andracing mares.

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The TBA organised two other NH events in 2016. The NH Breeders’ Celebration Dinner in May, to support,promote and recognise British NH achievements from the 2015-2016 season. The second event, the NH ‘Starsof Tomorrow’ Foal Show, was held at Bangor-on-Dee Racecourse in July. The show provided an excellentopportunity for mare owners to showcase their young stock.

Mare Owners’ Prize Scheme (NH MOPS) gained momentum following its launch in January 2016, the schemebeing aimed at improving demand at sales for British-bred or sired fillies aimed at NH racing, to maintain the NHracing programme and to encourage trainers to race more mares, and more frequently, and to ensure that moremares are tested as NH racehorses prior to their careers as broodmares.

FINANCIAL REVIEW

Financial review

The results for the year are set out in the attached financial statements. Total income amounted to £1,113,415(2015 - £1,231,154) which, after total expenditure of £1,396,742 (2015 - £991,788) resulted in a net loss for theyear of £283,327 (2015 - net profit of £239,366).

As at 31 December 2016 aggregate fund balances amounted to £2,022,777 (2015 - £2,306,104).

Reserves policy

The TBA’s Reserves Policy is managed by the Policy and Business Strategy Committee and ratified by theBoard. In forming the policy the TBA aims to ensure that the reserves level matches the TBA’s needs at thetime. In setting this policy the TBA assesses the reliability of future income streams, reviews committedexpenditure and the likely changes in the main source of income and assesses how the Charity would cope withchanges in its main source of income and the likelihood of the charity's needs and the consequences of theTBA not having been able to meet them.

The level of reserves includes provision for twelve month’s running costs/provision for closure costs includingredundancy payments and a ring-fenced element for the discretionary use by the Board in the event of adisease outbreak requiring central funding.

Principal funding

The TBA's principal funding is derived from the Voluntary Sales Levy, together with subscriptions andpublications income.

PLANS FOR FUTURE PERIODS

TBA’s overall objectives are unchanged and the Association’s plans for future periods reflect this situation andwere re-affirmed by the TBA Board. The TBA will continue to monitor external factors which could presentthreats or challenges to British breeders, their stock and businesses.

Education and Employment

For 2017, the core activities of providing guidance and support to members on pensions and employment lawwill continue. The TBA will be involved in a review of the racing and breeding industry’s guide to health andsafety, with a view to developing new health and safety training. The TBA will also continue to encourage and

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support the recognition of Stud Staff through its Award Scheme.

With regard to training, a programme of 7 courses and seminars is planned with five events located inNewmarket and the remaining two in the North and the South East, in recognition of the need to cater for allTBA countrywide. The TBA has also committed to funding a pilot entry level training course to be delivered bythe National Stud, which will be open to a more diverse range of new entrants to the industry than is currentlycatered for by the existing Apprenticeship course. £143,000 is committed to this project in 2017, with a further£143,000 earmarked for 2018 subject to a review in 2018. A scoping exercise will take place during January toMarch 2017 to clarify costings and to devise the detailed training programme, and subject to final approval ofthe TBA Board, the pilot will commence in October 2017.

Careers marketing and industry recruitment activities will continue through the activities of the Education andEmployment Committee and in partnership with the TBA's club for young people, The Thoroughbred Club. Inpartnership with the Racing Foundation, the TBA has commissioned a survey of studs about recruitment, skillsand retention to better understand staffing pressures in the industry, which will be take place during January andFebruary 2017, and which will be used to inform future activity.

The Thoroughbred Club

The predominant objective for 2017 remains an increase in membership, with 262 current members we believethis can built upon. This will be achieved through enhancing the delivery of each of our five ‘Star’ events thisyear, as well as continued communication with our members about our horses in training, broodmares, and themany offers we are privileged to. The club aims to expand it’s demographic to ensure it is well represented andrecognised across the country by varying event locations. TTC have also offered a bursary to members thisyear, and have secured a budget of £2,000 for this. The bursary is designed to support a candidate in furtheringtheir career and education in the industry, and ultimately increase the club in stature. TTC plan to raise theprofile of the bursary, and indeed the career choices on offer, throughout the year with articles in TOB as well asother publications. With increased focus on the careers opportunities, the club will strengthen its position as theleading educational and professional club for those with a passion for breeding.

Veterinary Research

In 2017 the TBA will provide £50,000 towards the work of the AHT's Infectious Diseases Service (IDS), andmaintain its on-going commitment to provide a contingency fund for use in the event of a major diseaseoutbreak in Great Britain.

The TBA Veterinary Committee will continue to encourage and support equine veterinary research in areas ofrelevance to Thoroughbred breeders by funding appropriate projects through the HBLB's Veterinary AdvisoryCommittee (VAC) scheme. Early pregnancy loss is one of the most significant contributors to reproductivewastage in the United Kingdom’s Thoroughbred breeding industry, and the TBA has committed to fully funding athree year post-doctoral research study, undertaken by Belinda Rose of the Royal Veterinary College entitled‘Genetics of equine placentation and pregnancy loss’ which will commence in 2017 (£234,000 over 3 years).This study aims to explore genetic changes in early horse pregnancy, and continues the work of a PhD studyfully funded by the TBA and undertaken by Miss Rose, exploring ‘Risk Factors and Pathologies associated withEarly Pregnancy Loss in Thoroughbreds’, which was completed in 2016 and is due to be defended with herexaminers in 2017.

In addition to stimulating and supporting equine veterinary research, the TBA veterinary objectives for 2017 are:to monitor and respond to health and welfare issues affecting the Thoroughbred breeding industry; todisseminate relevant veterinary information via courses, seminars, special forums and printed material, and toparticipate in infectious disease surveillance and control.

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Promotion and Awareness of the Breed

There will continue to be an emphasis upon establishing the #thisfillycan and MOPS campaigns as a wellunderstood opportunity for the Industry and Buyers of racehorses generally, along with continuing developmentof a marketing strategy for British Bloodstock and British Breeders, with particular emphasis on the highachieving horses under both codes, along with opportunistic campaigns that focus on matters immediate andcurrent, where publication will advance the Breed. Marketing and Promotion of the British Thoroughbred willcontinue to remain an important and essential part of the TBA strategy.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The company is constituted under a Memorandum of Association dated 11 November 2009 and is a registeredcharity number 1134293.

The principal objects of the company are to encourage by means of the provision of educational or researchfacilities or otherwise the science of producing and improving the Thoroughbred horse in Great Britain.

On 31 December 2009 the company acquired the whole of the assets and liabilities of the unincorporatedAssociation of the same name under a Deed of Asset transfer.

Method of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under theterms of the Articles of Association.

Policies adopted for the induction and training of Trustees

Newly appointed Trustees receive an Induction from the Chief Executive and are provided with CharityCommission Guidance documentation. Trustees are provided with details on updates to legislation on an on-going basis. The Association retains its legal advisers to provide ad-hoc advice on charitable requirements.

Pay policy for senior staff

The TBA considers its key management personnel comprise the board of directors, who are the Charity'strustees and the Chief Executive Officer. They are in charge of directing and controlling, running and operatingthe Charity on a day to day basis. All directors give of their time freely and no director received remuneration inthe year. Details of the directors' expenses and related party transactions are disclosed in the notes to theaccounts.

The pay of the Chief Executive Officer is reviewed by the directors annually. The level of salary is periodicallybenchmarked to ensure that the remuneration set is fair and in line with that generally paid for similar roles.

Organisational structure and decision making

The Board of Trustees comprises up to 12 elected and co-opted members, who meet at least six times a yearto approve policy. The Board Chairman also chairs the Policy and Business Strategy Committee which

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recommends policy to the Board on appropriate matters.

The Chief Executive reports to the Chairman and the Board and sits on all the Association’s sub-committeeswhich address and deliver the Association’s objectives in support of the Thoroughbred breed.

Related party relationships

Tattersalls Ltd – Tattersalls Ltd is the landlord of Stanstead House. The TBA occupies Stanstead House onfavourable lease terms. TBA Board member Edmond Mahony is a director of Tattersalls Ltd.

The British Horseracing Authority – The TBA is a member of the BHA and is represented on the stakeholdergroup by the Chairman. The TBA and BHA also collaborate on a number of racing related issues which affectbreeders and the TBA is represented on the relevant BHA committees.

The Horserace Betting Levy Board – The TBA works with the HBLB in support of its objectives: Education,Veterinary Research, Bloodstock Promotion and Improvement of the breed. The HBLB provides funding for allobjectives and the TBA in turn allocates a portion of its veterinary research budget to co-fund specific scientificresearch projects in support of the Thoroughbred breed and related stud farm activities.

The Racehorse Owners’ Association – The TBA and the ROA own a mutual trading company which publishesand circulates the magazine ‘Thoroughbred Owner and Breeder, incorporating Pacemaker.’ All income andexpenditure for the company is divided between the two Associations, with magazine production and distributioncosts shared as a percentage of respective membership numbers.

Thoroughbred Owner and Breeder Ltd - Philip Newton is a director of the company, the Chief Executive was adirector of the company until 8th December 2016.

Horsemen Limited (The Horsemen’s Group) - The TBA Chairman Julian Richmond-Watson is a director ofHorsemen Limited.

Retraining of Racehorses Limited – Nicholas Jones is a director of the company.

Newmarket Racecourse - The TBA sponsor a race at Newmarket. The TBA Chairman Julian Richmond-Watson is chairman of Newmarket Racecourse.

Risk management

The Trustees have assessed the major risks to which the company is exposed, in particular those related to theoperations and finances of the company, and are satisfied that systems and procedures are in place to mitigateour exposure to the major risks.

An Annual Review, of the risks the charity may face, is conducted by the Policy and Business StrategyCommittee with any subsequent changes updated in the management register.

A key element of the management of financial risk is the setting of a reserves policy, which is regularly reviewedby the Trustees as a result of the charity’s reliance on a high level of voluntary donations. The TBA’s reservespolicy provides for cash reserves of not less than twelve month’s overall expenditure for the charity. Details areprovided under Reserves Policy above.

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Public benefit

The trustees confirm that they have referred to the Charity Commission's guidance on public benefit whenreviewing the charity's aims and objectives and in planning future activities. The Thoroughbred Breeders’Association is a registered charity whose charitable purpose defined within the Charities Act 2011 is toencourage by means of the provision of educational or research facilities or otherwise the science of producingand improving the thoroughbred horse in Great Britain.

The charity provides public benefit as follows:

• Thoroughbred Breeders – by means of training, education and promotion.• Equine Research – to oversee the health and welfare requirements of the Thoroughbred horse with

particular attention to veterinary science in areas such as the improvement in practices associated with the breeding and rearing of Thoroughbred horses.

• Race-going general public – through the production of durable and quality bloodstock.

In addition, the charity:

• Maintains vigilance over Government and EU policies which affect British breeding• Continues to fund veterinary research vital to the industry• Continually raises awareness of the importance of the education of breeders and their staff (including

stud staff welfare)• Continues to improve racing opportunities for mares to test their ability prior to breeding, promote British

bred horses and raise awareness overseas.

The achievement of public benefit through the pursuit of the Charity’s stated purposes has been and willcontinue to be a central focus for the Trustees when making decisions with regard to the key strategies andpolicies of the Charity.

Trustees' responsibilities statement

The Trustees (who are also directors of The Thoroughbred Breeders' Association for the purposes of companylaw) are responsible for preparing the Trustees' Report and the financial statements in accordance withapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company lawthe Trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charitable company and of the incoming resources and application ofresources, including the income and expenditure, of the charitable company for that period. In preparing thesefinancial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgments and accounting estimates that are reasonable and prudent;

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

the charitable company will continue in operation.

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

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the charitable company's transactions and disclose with reasonable accuracy at any time the financial positionof the charitable company and enable them to ensure that the financial statements comply with the CompaniesAct 2006. They are also responsible for safeguarding the assets of the charitable company and hence for takingreasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charitable company's

auditors are unaware, and

that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of

any information needed by the charitable company's auditors in connection with preparing their report

and to establish that the charitable company's auditors are aware of that information.

This report was approved by the Trustees on 14 June 2017 and signed on their behalf by:

Julian Richmond-Watson,Chairman

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE THOROUGHBRED BREEDERS'ASSOCIATION

We have audited the financial statements of The Thoroughbred Breeders' Association for the year ended 31December 2016 set out on pages 14 to 32. The financial reporting framework that has been applied in theirpreparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 ofPart 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to thecharitable company's members those matters we are required to state to them in an Auditors' Report and for noother purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone otherthan the charitable company and its members, as a body, for our audit work, for this report, or for the opinion wehave formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors ofthe charitable company for the purposes of company law) are responsible for the preparation of the financialstatements 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 applicablelaw and International Standards on Auditing (UK and Ireland). Those standards require us to comply with theAuditing Practices Board's Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether causedby fraud or error. This includes an assessment of: whether the accounting policies are appropriate to thecompany's circumstances and have been consistently applied and adequately disclosed; the reasonableness ofsignificant accounting estimates made by the Trustees; and the overall presentation of the financial statements.In addition, we read all the financial and non-financial information in the Trustees' Report to identify materialinconsistencies with the audited financial statements and to identify any information that is apparently materiallyincorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing theaudit. If we become aware of any apparent material misstatements or inconsistencies we consider theimplications for our report.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE THOROUGHBRED BREEDERS'ASSOCIATION

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 December 2016 and of

its incoming resources and application of resources, including its income and expenditure, for the year

then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit, the information given in the Trustees'Report for the financial year for which the financial statements are prepared is consistent with those financialstatements and such reports have been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in thecourse of the audit, we have not identified material misstatements in the Trustee's Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us toreport to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been

received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or

the Trustees were not entitled to take advantage of the small companies' exemption from the

requirement to prepare a Strategic Report.

Paul Chapman (Senior Statutory Auditor) for and on behalf of Peters Elworthy & Moore

Chartered AccountantsStatutory Auditors Salisbury HouseStation RoadCambridgeCB1 2LADate:

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STATEMENT OF FINANCIAL ACTIVITIES(INCORPORATING INCOME AND EXPENDITURE ACCOUNT)


Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

Note2016

£2016

£2016

£2015

£

INCOME FROM:

Donations, grants and voluntary levies 2 73,000 736,055 809,055 921,625Charitable activities 3 - 235,928 235,928 232,324Other trading activities 4 15,510 35,533 51,043 36,802Investments 5 - 17,389 17,389 40,403

TOTAL INCOME 88,510 1,024,905 1,113,415 1,231,154

EXPENDITURE ON:

Raising funds 6 18,399 112,420 130,819 113,843Charitable activities 7 80,303 1,185,620 1,265,923 877,945

TOTAL EXPENDITURE 98,702 1,298,040 1,396,742 991,788

NET INCOME FOR THE FINANCIAL YEARBEFORE TRANSFERS (10,192) (273,135) (283,327) 239,366

Transfers between Funds 20 2,889 (2,889) - -

NET INCOME / (EXPENDITURE) BEFOREOTHER RECOGNISED GAINS ANDLOSSES (7,303) (276,024) (283,327) 239,366

NET MOVEMENT IN FUNDS (7,303) (276,024) (283,327) 239,366

RECONCILIATION OF FUNDS:

Total funds brought forward 7,303 2,298,801 2,306,104 2,066,738

TOTAL FUNDS CARRIED FORWARD- 2,022,777 2,022,777 2,306,104

All activities relate to continuing operations.

The notes on pages 17 to 32 form part of these financial statements.

Page 14


(A Company Limited by Guarantee)REGISTERED NUMBER: 07073259

BALANCE SHEETAS AT 31 DECEMBER 2016

2016 2015Note £ £ £ £

FIXED ASSETS

Tangible assets 13 6,460 2,709

Investments 14 100,000 100,000

Programme related investments

Total investments

15 20,000

120,000

40,000

140,000

126,460 142,709

CURRENT ASSETS

Stocks 16 500 500

Debtors 17 121,884 63,097

Investments 18 1,214,435 1,512,686

Cash at bank and in hand 750,648 740,369

2,087,467 2,316,652

CREDITORS: amounts falling due withinone year 19 (191,150) (153,257)

NET CURRENT ASSETS 1,896,317 2,163,395

NET ASSETS 2,022,777 2,306,104

CHARITY FUNDS

Restricted funds 20 - 7,303

Unrestricted funds 20 2,022,777 2,298,801

TOTAL FUNDS 2,022,777 2,306,104

The financial statements were approved and authorised for issue by the Trustees on 14 June 2017 and signedon their behalf, by:

Julian Richmond-Watson, Chairman


Page 15



STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2016

2016 2015Note £ £

Cash flows from operating activities

Net cash (used in)/provided by operating activities 22 (299,396) 306,069

Cash flows from investing activities:Dividends, interest and rents from investments 17,389 40,403Purchase of tangible fixed assets (5,965) -Purchase of investments (103,989) (345,583)

Net cash used in investing activities (92,565) (305,180)

Change in cash and cash equivalents in the year (391,961) 889

Cash and cash equivalents brought forward 740,369 739,480

Cash and cash equivalents carried forward 23 348,408 740,369


Page 16



NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2016

1. ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with Accounting and Reporting byCharities: Statement of Recommended Practice applicable to charities preparing their accounts inaccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standardapplicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006

The Thoroughbred Breeders' Association meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unlessotherwise stated in the relevant accounting policy.

1.2 COMPANY STATUS

The company is a company limited by guarantee. The members of the company are the Trusteesnamed on page 1. In the event of the company being wound up, the liability in respect of theguarantee is limited to £1 per member of the company.

1.3 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees infurtherance of the general objectives of the company and which have not been designated for otherpurposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees forparticular purposes. The aim and use of each designated fund is set out in the notes to the financialstatements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed bydonors or which have been raised by the company for particular purposes. The costs of raising andadministering such funds are charged against the specific fund. The aim and use of each restrictedfund is set out in the notes to the financial statements.

1.4 INCOME

All income is recognised once the company has entitlement to the income, it is probable that theincome will be received and the amount of income receivable can be measured reliably.

Donations and income from voluntary levies are recognised when the company has been notified inwriting of both the amount and settlement date.

Income from grants is recognised when the company has entitlement to the funds, any performanceconditions attached to the grants have been met, it is probable that the income will be received andthe amount can be measured reliably and is not deferred.

Income from training courses and meetings and event income is recognised upon receipt of a salesorder.

Income from subscriptions is recognised upon receipt or when there is certainty of receipt.

Page 17




1. ACCOUNTING POLICIES (continued)

1.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measuredreliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

1.6 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economicbenefit to a third party, it is probable that a transfer of economic benefits will be required insettlement and the amount of the obligation can be measured reliably. Expenditure is classified byactivity. The costs of each activity are made up of the total of direct costs and shared costs,including support costs involved in undertaking each activity. Direct costs attributable to a singleactivity are allocated directly to that activity. Shared costs which contribute to more than one activityand support costs which are not attributable to a single activity are apportioned between thoseactivities on a basis consistent with the use of resources. Central staff costs are allocated on thebasis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Grants payable are charged in the year when the offer is made except in those cases where theoffer is conditional, such grants being recognised as expenditure when the conditions attaching arefulfilled. Grants offered subject to conditions which have not been met at the year end are noted as acommitment, but not accrued as expenditure.

All resources expended are inclusive of irrecoverable VAT.

1.7 OPERATING LEASES

Rentals under operating leases are charged to the Statement of Financial Activities IncorporatingIncome and Expenditure Account on a straight line basis over the lease term.

1.8 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimatedresidual value, over their expected useful lives on the following bases:

Tenants improvements toproperty

- over the period of the lease

Office equipment - over 5 years

1.9 FIXED ASSET INVESTMENTS

Unlisted fixed asset investments are carried at historical cost less any impairment provision.

1.10 INVESTMENT IN JOINT VENTURE

The joint venture, Thoroughbred Owner and Breeder Limited, established in 2005, has beenincorporated into these financial statements. Given the nature of the joint venture's activities, allTBA contributions towards the operating costs of the company have been treated as costs of theTBA within 'expenditure on charitiable activities' in the Statement of Financial Activities.

Page 18




1. ACCOUNTING POLICIES (continued)

1.11 STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion offixed and variable overheads.

1.12 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered.Prepayments are valued at the amount prepaid net of any trade discounts due.

1.13 CURRENT ASSET INVESTMENTS

Current asset investments comprise fixed rate bonds with a maturity of less than one year held forinvestment purposes rather than to meet short term cash commitments as they fall due.

1.14 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short term highly liquid investments with a shortmaturity of three months or less from the date of acquisition or opening of the deposit or similaraccount.

1.15 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a pastevent, it is probable that a transfer of economic benefit will be required in settlement, and theamount of the settlement can be estimated reliably. Liabilities are recognised at the amount that thecompany anticipates it will pay to settle the debt or the amount it has received as advancedpayments for the goods or services it must provide. Provisions are measured at the best estimate ofthe amounts required to settle the obligation.

1.16 FINANCIAL INSTRUMENTS

The company only has financial assets and financial liabilities of a kind that qualify as basic financialinstruments. Basic financial instruments are initially recognised at transaction value andsubsequently measured at their settlement value with the exception of bank loans which aresubsequently measured at amortised cost using the effective interest method.

1.17 PENSIONSThe company contributes to a group personal retirement plan in respect of its employees. Thepension charge represents contributions payable by the company to the scheme.

Page 19




2. INCOME FROM DONATIONS, GRANTS AND VOLUNTARY LEVIES

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Donations - 4,293 4,293 8,897Grants 73,000 - 73,000 83,000Voluntary levies - 731,762 731,762 829,728

Total donations and legacies 73,000 736,055 809,055 921,625

In 2015, of the total income from donations and legacies, £838,625 was to unrestricted funds and £83,000was to restricted funds

3. INCOME FROM CHARITABLE ACTIVITIES

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Subscriptions and publications income - 206,351 206,351 211,313Training courses - 11,602 11,602 21,011Mare owners prize scheme initiative - 17,975 17,975 -

- 235,928 235,928 232,324

In 2015 all income from charitable activities was unrestricted.

4. OTHER TRADING ACTIVITIES

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Meetings and event income 15,510 35,533 51,043 36,802

In 2015 all income from other trading activities was unrestricted.

Page 20




5. INVESTMENT INCOME

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Investment income - 2,398 2,398 2,500Bank interest receivable - 14,991 14,991 37,903

- 17,389 17,389 40,403

In 2015 all investment income was unrestricted

6. EXPENDITURE ON RAISING FUNDS

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Fundraising and publicity - 50,869 50,869 27,607Meeting and events costs 18,399 61,551 79,950 86,236

18,399 112,420 130,819 113,843

In 2015, of the total expenditure on raising funds, £104,581 was to unrestricted funds and £9,262 was torestricted funds.

7. ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES

Activitiesundertaken

directly

Grantfunding of

activitiesSupport

costs Total Total2016

£2016

£2016

£2016

£2015

£

Research 23,212 104,219 236,233 363,664 235,485Education 217,674 - 218,023 435,697 262,795Marketing and promotion - - 213,830 213,830 150,075Bloodstock industry support 236,851 - 15,881 252,732 229,590

Total 477,737 104,219 683,967 1,265,923 877,945

Page 21




8. DIRECT COSTS

Research EducationBloodstock

industryTotal2016

Total2015

£ £ £ £ £

Production and distribution ofmagazine 23,212 23,211 - 46,423 15,900

Education and employment - 134,336 - 134,336 40,429Marketing and promotion - - 236,851 236,851 212,115Wages and salaries - 50,135 - 50,135 54,815National insurance - 5,648 - 5,648 5,527Pension cost - 4,344 - 4,344 3,727

23,212 217,674 236,851 477,737 332,513

In 2015, the company incurred the following Direct costs:

£7,950 in respect of Research

£112,448 in respect of Education

£212,115 in respect of Bloodstock industry support

9. ANALYSIS OF GRANTS

Grants toInstitutions

Grants toIndividuals Total Total

2016£

2016£

2016£

2015£

Grants, Research 102,319 1,900 104,219 60,515

Grants to institutions comprises £52,319 (2015 - £9,715) granted to the Horserace Betting Levy Board forveterinary research and special projects and £50,000 (2015 - £50,000) granted to the Animal Health Trustfor Diagnostic Services.

Page 22




10. SUPPORT COSTS

Governance Research Education

Marketingand

promotionTotal2016

Total2015

£ £ £ £ £ £

Property costs - 8,999 8,998 8,998 26,995 24,363Library and office

expenses - 10,286 10,287 10,287 30,860 26,437Legal and

professional - 15,375 15,374 15,374 46,123 16,511Miscellaneous

expenditure - 9,332 9,331 9,331 27,994 3,227Printing and

stationery - 3,071 3,071 3,071 9,213 8,133Computer costs - 3,854 3,855 3,855 11,564 3,940EFTBA

subscriptioncost - - - 9,748 9,748 8,307

TOB investmentimpairment andinterest writtenoff - 7,466 7,466 7,466 22,398 22,500

Consultancy - 6,249 6,250 6,250 18,749 17,014Auditors'

remuneration 8,475 - - - 8,475 8,2702014

InternationalBreeders'Meeting UKcosts - - - - - 6,017

Meetings,committee andtravel 22,296 - - - 22,296 18,490

Accountancy andtax advisoryservices 2,387 - - - 2,387 2,570

Wages andsalaries 65,990 100,220 102,966 102,966 372,142 271,499

Nationalinsurance - 13,146 10,406 10,406 33,958 27,369

Pension cost - 15,041 11,905 11,905 38,851 18,460Depreciation - 738 738 738 2,214 1,810

99,148 193,777 190,647 200,395 683,967 484,917

Page 23




10. SUPPORT COSTS (continued)

In 2015, the company incurred the following Support costs:

£149,097 in respect of Research

£130,346 in respect of Education

£138,653 in respect of Marketing and promotion

£66,821 in respect of Governance

Support costs have been allocated on a basis consistent with the use of resources which principally isderived from time spent in different activities. Governance costs have been allocated to research,education and marketing and promotion in proportion to the other total costs incurred on each activity.

11. NET INCOME/(EXPENDITURE)

This is stated after charging:

2016 2015 £ £

Depreciation of tangible fixed assets:- owned by the charity 2,214 1,810

Auditors' remuneration - audit 8,475 8,270Auditors' remuneration - other services 2,387 2,570

Page 24




12. STAFF COSTS

Staff costs were as follows:

2016 2015 £ £

Wages and salaries 422,277 326,314Social security costs 39,606 32,896Other pension costs 43,195 22,187

505,078 381,397

The average number of persons employed by the company during the year was as follows:

2016 2015 No. No.

Research 1 1Education 2 1Marketing and promotion 4 3Management and administration 2 2

9 7

The number of higher paid employees was:

2016 2015 No. No.

In the band £90,001 - £100,000 1 1

The key management personnel of the charity comprise the trustees and the Chief Executive Officer.The total employee benefits of the key management personnel of the charity were £197,971 (2015 -£94,173).

Termination payments were made to 2 (2015 - 0) employees during the year totalling £128,235 (2015 -£nil), of which £67,791 (2015 - £nil) remained outstanding at the year end and was included within othercreditors.

The charity trustees were not paid or received any other benefits from employment with the company inthe year (2015 - £nil).

5 trustees were reimbursed expenses or had their expenses paid directly during the year amounting to£7,781 (2015 - 6 trustees - £4,326).

Page 25




13. TANGIBLE FIXED ASSETS

Officeequipment Library Total

£ £ £

COST

At 1 January 2016 18,797 100 18,897Additions 5,965 - 5,965Disposals (6,355) - (6,355)

At 31 December 2016 18,407 100 18,507

DEPRECIATION

At 1 January 2016 16,188 - 16,188Charge for the year 2,214 - 2,214On disposals (6,355) - (6,355)

At 31 December 2016 12,047 - 12,047

NET BOOK VALUE

At 31 December 2016 6,360 100 6,460

At 31 December 2015 2,609 100 2,709

14. FIXED ASSET INVESTMENTS

Unlistedsecurities

£

COST

At 1 January 2016 and 31 December 2016 100,000

Page 26




15. PROGRAMME RELATED INVESTMENTS

Unquotedprogramme

relatedinvestment

£

MARKET VALUE

At 1 January 2016 and 31 December 2016 100,000

IMPAIRMENT

At 1 January 2016 (60,000)Charge for the year 20,000

At 31 December 2016 80,000

NET BOOK VALUE

At 31 December 2016 20,000

At 31 December 2015 40,000

PROGRAMME RELATED INVESTMENTS COMPRISE:

Other2016

Total2015

£ £

Unsecured loan to Thoroughbred Owner and Breeder Limited 20,000 40,000

The unquoted programme related investment represents an unsecured loan to Thoroughbred Owner andBreeder Limited, a company in which the Association has a 50% interest (see note 26 below). This loanbears interest at 2% per annum over the Base Rate of Weatherbys Bank Limited and is repayable nolater than 22 December 2018.

The TBA Board consider that the primary purpose of the loan has been fulfilled, with an enhancedpublication at a substantially lower cost, providing a materal advantage to its members.

16. STOCKS

2016 2015 £ £

Finished goods and goods for resale 500 500

Page 27




17. DEBTORS

2016 2015 £ £

Trade debtors 7,181 6,774Loan to The Horsemen's GroupOther debtors

15,90954,343

15,90930,456

Prepayments and accrued income 44,451 9,958

121,884 63,097

The loan to The Horsemen's Group is unsecured and repayable on demand. There will be no interest onthe loan so long as there is no default by The Horsemen's Group in respect of its obligations under theLoan agreement.

18. CURRENT ASSET INVESTMENTS

2016 2015 £ £

Fixed rate bonds 1,214,435 1,512,686

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016 2015 £ £

Trade creditors 68,106 74,605Other taxation and social security 7,972 15,059Grant commitmentsOther creditors

129,508(46,307)

22,21518,550

Accruals 31,871 22,828

191,150 153,257

Page 28




20. STATEMENT OF FUNDS

BroughtForward Income Expenditure

Transfersin/out

CarriedForward

£ £ £ £ £

DESIGNATED FUNDS

TOB Magazine Investment Fund 40,000 - (20,000) - 20,000

GENERAL FUNDS

General Funds 2,258,801 1,024,905 (1,278,040) (2,889) 2,002,777

Total Unrestricted funds 2,298,801 1,024,905 (1,298,040) (2,889) 2,022,777

RESTRICTED FUNDS

Education and Employment - 73,000 (73,000) - -Stud Farm Injury and Accident

Survey 7,303 - (7,303) - -The Thoroughbred Club Fund - 15,510 (18,399) 2,889 -

7,303 88,510 (98,702) 2,889 -

Total of funds 2,306,104 1,113,415 (1,396,742) - 2,022,777

The designated TOB Magazine Investment Fund represents the TBA’s investment in ThoroughbredOwner and Breeder Limited (see note 15 above).

The restricted funds represent funding from the Horserace Betting Levy Board (HBLB) for the Stud StaffTraining Project and funding from the Racing Foundation for the Stud Farm Injury and Accident Survey.The Thoroughbred Club Fund represents funding for a specific careers course, with the shortfall fromrunning the course being covered by a transfer from general funds.

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

- - - 2,709Tangible fixed assets - 6,460 6,460 -Fixed asset investments - 100,000 100,000 100,000Programme related investments - 20,000 20,000 40,000Current assets - 2,087,467 2,087,467 2,316,652Creditors due within one year - (191,150) (191,150) (153,257)

- 2,022,777 2,022,777 2,306,104

Page 29




22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOWFROM OPERATING ACTIVITIES

2016 2015 £ £

Net (expenditure)/income for the year (as per Statement offinancial activities) (283,327) 239,366

Adjustment for:Depreciation charges 2,214 1,810Impairment of programme related investment 20,000 20,000Dividends, interest and rents from investments (17,389) (40,403)(Increase)/decrease in debtors (58,787) 7,828Increase in creditors 37,893 77,468

Net cash (used in)/provided by operating activities (299,396) 306,069

23. ANALYSIS OF CASH AND CASH EQUIVALENTS

2016 2015 £ £

Cash in hand 348,408 740,369

Total 348,408 740,369

24. OPERATING LEASE COMMITMENTS

At 31 December 2016 the total of the Charity’s future minimum lease payments under non-cancellableoperating leases was:

Land and buildings Other2016 2015 2016 2015

£ £ £ £

Within 1 year 21,000 21,000 1,916 1,916Between 1 and 5 years - - 316 1,578

Total 21,000 21,000 2,232 3,494

Page 30




25. JOINT VENTURE - THOROUGHBRED OWNER AND BREEDER LIMITED

A joint venture company, number 05147933 registered in England, was incorporated on 18 June 2005.The company is limited by guarantee and does not have share capital. Its registered office is 75 HighHolborn, London, W1CV 6LS.

The company is a joint venture between the Racehorse Owners Assocation and The ThoroughbredBreeders' Association to print and publish a magazine for the members of the two Assocations, andothers as agreed.

The directors appointed by the TBA are Peter Mendham and Philip Newton.

The TBA's share (50%) of turnover for the year to 31 December 2016 amounting to £281,028 (2015 -£292,824), based upon management accounts, is included in these financial statements.

A summary of the company's published results for the year ended 31 March 2016 are as follows:

2016 £

Turnover 602,123Expenditure (678,730)

Gross Loss

(76,607)

ROA Production contributions (86,623)TBA Production contributions 10,016

Total (76,607)

The two parties to the joint venture contribute funds to cover the cost of production and distribution of themagazine to their own members. Residual losses (excess of costs over income) are split equally betweenthe two parties. The TBA's share of both these costs are shown within 'cost of charitable activities' in theSOFA.

Given the nature of the joint venture's activites, all TBA contributions have been treated as costs of theTBA. The balance sheet and profit and loss accounts of TOB have been prepared on the basis that thetwo parties will make contributions to cover all costs. Accordingly no value is attributable to the TBA'sinvestment in TOB. At 31 March 2016 the balance sheet of TOB was as follows:

Page 31




2016£

Fixed assets 200,000Current assets 169,053Creditors due within one year (169,053)Creditors due after more than one year (200,000)

(200,000)

Reserves -

26. RELATED PARTY TRANSACTIONS

Membership of the charity is open to any person aged 18 years or over who are breeders of thethoroughbred horse and all others who declare their support for and are in sympathy with the charity'sobjects. The trustees are all individual members of the charity but do not derive any enhanced benefitsby virtue of their position.

As set out in note 17 above, the charity has made an interest-free unsecured loan of £15,909 (2015 -£15,909) to Horsemen Limited (The Horsemen's Group) to assist that company to meet its forecastfunding requirements and this sum is included in debtors. The TBA Chairman Julian Richmond-Watsonis a director of Horsemen Limited.

Page 32

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