annual repo rt & financial statements · 2 ANNUAL REPORT AND FINANCIAL STATEMENTS HEART OF ENGLAND...

annual report &financial statements

for the period ended 20th January 2018

1HEART OF ENGLAND CO-OPERATIVE SOCIETY

we are…an independent, regional co-operativesociety, known as the Heart of EnglandCo-operative Society Limited. Ourorigins go back to 1832, when theLockhurst Lane Industrial Co-operative Society was founded,near Coventry. Our current name cameinto being in January 2000, after morethan 160 years during which more thantwenty local, independent co-operativesocieties joined together to pool theirresources.

our vision…is to be an innovative regionalbusiness, always seeking opportunitiesfor profitable growth, whilst

demonstrating that a retail co-operativesociety can bring genuine benefits tolocal customers, members andcommunities.

our mission...as a consumer co-operative is toprovide good value for money througha range of shopping facilities andservices. Our trading practices arebased on a combination of sound co-operative business ethics and theneed to trade profitably. We willalways seek ways to share our successwith our members and the localcommunities in which we trade.

Opening of our rebuilt Long Lawford, Rugby co-operative food store.

vision/mission statement

welcome to the heart of england1

vision/mission statement

directors and officials

notice of meeting

five year comparative statement

illustrated five year period

directors’ report

co-operative, environmental and social performance indicators

11 directors’ statement on corporate governance

11 statement under the modern slavery act 2015

17 accounting policies

statement of the directors’ responsibilities

independent auditor’s report

consolidated income statement

consolidated statement of comprehensive income

consolidated statement of financial position

consolidated statement of changes in equity

consolidated statement of cash flows

notes to the financial statements

community support and member relations

trading area and operations

contents

Heart of England Co-operative Society Limited

is registered under the Co-operative and Community

Benefit Societies Act 2014. Registered No. 2399R

Registered Office:-

22 Abbey Street, Nuneaton, Warwickshire, CV11 5BU.

Telephone: 024 7638 2331.

VAT Registration No. 328 0789 38.

Solicitors

Bankers

Independent auditors

advisers

ANNUAL REPORT AND FINANCIAL STATEMENTS2 3HEART OF ENGLAND CO-OPERATIVE SOCIETY

4. to approve the followingmirecommendation of the Board ofmiDirectors that the fees for the Boardmiof Directors shall be as follows:-miPresident: £2,972 per annummiVice President: £2,528 per annummiDirectors: £1,842 per annum

5. to appoint Auditors:-miNominated: Grant thornton uK LLP

6. to receive the report of themiEducation and Member relationsmiCommittees.

7. Declaration of the result of votingmifor Board of Directors and Membermirelations Committees.

By order of the BoardI. BainFinancial Controller & Secretary27th March 2018.

to obtain admission to the meetingIn order to gain admission to themeeting a member must produce theirown personal Member Share PassBook or a receipt in lieu of the Pass Book.

Each member shall have a vote andmay vote for candidates in eachregion. they must have been acceptedas a member for a period of not lessthan six months prior to the date of themeeting and must hold at least one £1 share.

Main Board Audit Committee Occupation Attendance Attendance Elected term 2017 Possible Actual Possible Actual Expires remuneration

CLIVE MILES* retired 13 13 2 2 1996 2018 £2,839President PAuL ELVErSON* Manager 13 13 2 2 1997 2018 £2,414Vice PresidentMArK ALEXANDEr retail Manager 9 9 1 1 2017 2019 £1,210COLIN BrOWN Facilities Supervisor 13 12 2 1 2011 2020 £1,756GAry HAIGH Self Employed 13 12 2 2 2011 2020 £1,756NICK MAttHEWS Lecturer 13 11 2 2 2007 2020 £1,756CHrIS NEWMAN Caretaker 13 11 2 2 1998 2019 £1,756MArK ruMSEy Employee 9 9 1 1 2017 2019 £1,188ANDrEW tAMPION Legal Advisor 13 13 2 2 2013 2020 £1,756

* retires May 2018, eligible for re-election

notice of meetingdirectors and officials

Ali Kurji, Chief Executive and Jo Dyke, Community & Membership Adviser receiving the Corporate Commitment to the Community Award at the CoventryTelegraph Business Awards from Matthew Hayes, Champion After Dinner Speakers.

COLIN BROWN NICK MATTHEWS MARK RUMSEYCHRIS NEWMANGARY HAIGH

board of directors

ALI KURJIChief Executive

CLIVE MILESPresident

PAUL ELVERSONVice President

management executive

ALI KurJIChief ExecutiveIAN BAIN Financial Controller & Secretary

PEtEr FLEtCHErGeneral Manager, FoodDArryL SMItH General Manager, FuneralMAurEEN EMMSPersonnel Manager

annual meeting of members,may 2018will be held at:-

Central Hall22 Abbey Street Nuneaton CV11 5Bu on thursday, 10th May 2018.

Meeting to commence at 6.30p.m.refreshments will be available prior tothe meeting. All attendees will receive£10 in Society gift vouchers.

agenda1. to confirm the minutes of themiAnnual General Meetings held in May 2017.

2. to receive the Board of Directors’mireport (pages 6 to 9).

3. to adopt the Accounts for the yearmiended 20th January 2018 togethermiwith the Independent Auditor’smireport therein (pages 15 to 36).

ANDREW TAMPIONMARK ALEXANDER

January January January January 2014 2015 2016 2017 53 weeks 52 weeks 52 weeks 52 weeks

£ 000 £ 000 £ 000 £ 000CONSOLIDATED INCOMESTATEMENTGross value of sales 95 439 94 551 92 225 75 678 77 427Depreciation 1 999 2 161 2 160 1 677 1 705Other expenses 23 728 24 535 24 991 20 550 19 779Exceptional items - 1 559 (2 280) 2 010 749Fair value adjustments - funeral prepayment plans - 1 218 (1 016) 1 399 (126)Operating profit/(loss) 5 201 (1 326) 4 584 1 658 5 505Investment income 236 114 93 71 79retained profit/(loss) 1 765 (1 634) 3 097 1 347 4 176

CONSOLIDATED STATEMENTOF FINANCIAL POSITON

Fixed AssetsIntangible assets 308 277 246 215 184Property, plant and equipment 23 946 25 141 25 105 28 860 22 887Investment properties 14 959 13 513 15 073 9 794 Other investments 12 533 15 108 17 403 19 861Current AssetsOther investments 458 572 646 703Inventories 5 340 5 538 4 148 2 799trade and other receivables 1 305 1 857 1 807 1 102 Cash at bank and in hand 10 066 8 929 6 191 10 443

Current LiabilitiesCreditors 6 437 7 089 6 542 5 472Long Term LiabilitiesCreditors 12 545 16 204 17 534 21 414Pension deficit 7 987 10 979 7 026 9 303Deferred tax 2 024 1 826 1 903 1 540Net Assets 39 922 34 837 37 614 36 048Net Assets excluding Pension deficit 47 909 45 816 44 640 45 351Share capital 2 758 2 757 2 235 2 101revaluation reserve 5 449 5 337 5 225 5 295revenue reserve 31 715 26 743 30 154 28 652 39 922 34 837 37 614 36 048Profit/(loss) after interest 5 017 (1 679) 4 176 1 366Capital expenditure 5 109 3 621 4 413 1 693Net cash 9 914 8 861 6 191 10 443

ANNUAL REPORT AND FINANCIAL STATEMENTS4

five year comparative statement

January2018

52 weeks

10 75023 417

7972 8062 080

19 750

24 8518 4331 681

40 701

49 134

2 1455 041

33 515

40 701

5 233 2 113

19 750

Jan 201453 weeks

Jan 201552 weeks

Jan 201652 weeks

Jan 201752 weeks

Jan 201852 weeks

m£ tseretni retfa profitm£ selas fo eulav ssorg operating profit/(loss) £m(after exceptional items)

(as restated)

m£ htrow tenm£ hsac ten

capital expenditure £m

These bar charts represent figures extracted from the five year comparative statement on page 4.The Society's 'net worth' is based upon the 'net assets' figure.

Jan 201453 weeks

Jan 201552 weeks

Jan 201453 weeks

Jan 201552 weeks

Jan 201453 weeks

Jan 201552 weeks

Jan 201453 weeks

Jan 201552 weeks

Jan 201752 weeks

Jan 201453 weeks

Jan 201552 weeks

Jan 201752 weeks

Jan 201852 weeks

5.25.0

9.9 10.4

75.777.4

Jan 201652 weeks

Jan 201752 weeks

Jan 201852 weeks

Jan 201652 weeks

Jan 201752 weeks

Jan 201852 weeks

Jan 201652 weeks

Jan 201752 weeks

Jan 201852 weeks

Jan 201652 weeks

37.6 36.0

Jan 201652 weeks

Jan 201852 weeks

(as restated)

illustrated five year period

(as restated) (as restated) (as restated)

On a like-for-like basis, the fooddivision recorded an increase in salesof 6.75% for the 52 week period. theincrease mainly came from theconvenience stores which achieved anoverall increase in sales of 8.3%

whereas the larger stores achieved anincrease of 2.5%. Our large store atWellesbourne continued to be impactedby the local competition.

Margins also came under pressureduring the year due to the fiercecompetition in our trading region andwere marginally down at branch levelcompared to the previous year.

In March we rebuilt our food store atLong Lawford and the store has beenconsistently achieving sales increasesin excess of 70.0%.

We extended our store in Meriden inAugust and the store is now achievingsales increases in excess of 40.0%.

We also carried out a mini refit at ourstore in Allesley Old road in Coventrywhich is achieving a satisfactoryincreases in sales.

Our store in Old Bilton, rugby wasdownsized allowing us to open longerhours on Sunday.

We also have plans to further expandour penetration in the food business and we are currently awaiting planningpermission approval.

We have continued to review andimprove our product ranges payingparticular attention to our fresh foodrange which has seen a satisfactorylevel of increase in sales. this is indirect response to the changes in theconvenience market. We have alsocontinued to support the Fairtradeproduct range.

In October, we reluctantly closed ourfood store in Willenhall, Coventry andsub-divided the unit into two. Both theunits have been rented out and inFebruary, the main unit opened as aHeron food store whilst the smallerunit was leased to a local pharmacist.

funeral divisionWe are pleased to report an increase insales of 12.2% on a like-for-like basison the previous year and thecontribution was up 26.9% on theprevious year, another record year forthe division. Our masonry sales werealso up by 17.0% on the previous year.

We recorded a 36.0% increase in thenumber of pre-paid funeral plans soldduring the year. this was helped by our

advertising campaign and the open daysheld at Nuneaton, rugby and Coventry.

Our recently opened funeral homes inNuneaton, Kenilworth and KenpasHighway in Coventry continue toperform satisfactorily and the othersatellite funeral homes also performedwell, particularly our Asian funeralhome in Coventry.

the low cost direct service offering has also been well received by theclient families and the localcommunities we serve.

We refurbished our funeral home onLower Holyhead road in Coventry to avery high standard which has been wellreceived by the client families and wealso invested in three new ambulances.

We continue to take steps to developour standards to the highest possiblelevel, whilst maintaining a verycompetitive single price policythroughout all our funeral homes forthe benefit of our client families.

the division was also actively engagedin numerous local community andcharitable events during the year andwe were delighted to have won theLeamington Spa Business Award forCustomer Service.

ANNUAL REPORT AND FINANCIAL STATEMENTSANNUAL REPORT AND FINANCIAL STATEMENTS 7HEART OF ENGLAND CO-OPERATIVE SOCIETY6

to the membersWe are pleased to present the Annualreport of the Heart of England Co-operative Society Limited for the52 weeks ended 20th January 2018.

generalthe year 2017 turned out to be one ofthe most challenging and difficult yearsin recent times when a number ofcompanies had issued profit warningsand which witnessed very toughtrading conditions and anunprecedented level of competition,particularly in the food sector, from themajor multiples in general but more sofrom the discount operators who haveincreased their market shareconsiderably over a short period.We are operating in a more complexenvironment than ever before withcontinued pressure on margins andvolatility as a result of price reductionsby the multiples in order to competewith the discounters.

the Co-operative Group recentlyannounced it would be reducing prices onalmost 600 lines by investing £50 millionin price reductions which will only addfurther pressures on food margins.

Consumer confidence remains low dueto a great deal of uncertainty about theeconomy and the slow progress overBrexit negotiations. this has been furthercompounded by the recent increase ininterest rates, which will inevitably addfurther pressures on retail prices asinflation begins to creep up.

We face an extremely challenging andvery uncertain 2018 and all theeconomic indicators are pointingtowards a slowdown in the economy asit appears to be losing momentum amidBrexit concerns.

We anticipate more consolidations inthe food sector with the recentannouncement of the tesco-Bookermerger which is due to be finalised inMarch and the impending acquisition

of Nisa subject to regulatory clearance,and the supply deal with Costcutter inApril by the Co-operative Group.

financial reviewDespite the challenges, we have had avery successful year and our operatingprofit, after charging exceptional itemsand after surplus on sale of fixed assetsand revaluation of investmentproperties, was £5.5 million comparedto £1.7 million the previous year.

Group turnover for the year was £71.7 million which is an increase of2.4% on the previous year.

the policies in place are beingsuccessfully implemented and will helpto create a strong regional co-operativebusiness which will withstand theeconomic challenges ahead.

We are delighted to have continued tooperate with no borrowings, indeed weare very well placed to continue withour re-development programmewithout having to rely on externalfunding. We have £19.7 million in thebank and the Society continues toinvest in its renewal programme, witha further £2.1million having beenutilised on new projects during 2017. A number of further projects in thefood and funeral divisions, which willinvolve significant capital expenditure,will be looked at in the coming years.

the Society’s net worth has increasedby 12.9% to £40.7 million over thepast 12 months.

During the year, we disposed of theredundant non-food premises at rugbyand Coventry and the distributioncentre in Nuneaton.

In line with most final salary pensionschemes which are running in deficit,our pension liability calculated inaccordance with FrS 102 foraccounting purposes only, now standsat £8.4 million compared to £9.3million last year, a decrease of 9.3%.the final salary scheme was closed toall new entrants in October 2012. Allnew employees now join a definedcontribution scheme operated by NOWPensions. the Society is currentlyworking with our Actuary and Lawyerswith a view to merge the two pensionfunds which will be finalised shortly.

trading review food divisionthere can be little doubt that there hasbeen a significant shift in food retailingwhich continues to be extremelycompetitive with the changing customershopping habits. It is a fiercely contestedsector not only by the multinationals butmore so by the discounters who havecollectively seen their market sharegrow significantly over recent years.this has been further compounded bythe growth in online shopping.

directors’ report

Instore bakery at our refurbished Meriden co-operative food store.

Dedication service at our refurbished Lower Holyhead Road, Coventry funeralcare

We were delighted to have won the Leamington Spa Business Award for Customer Service.

retired colleagueslong service awardIn December, many of our retiredcolleagues were able to join us at theBenn Hall in rugby as our guests forthe annual Society luncheon.Due to poor response and the decliningturnout by our retired colleagues, it hasbeen decided this event will cease inthe future.

During the event, a number of longservice awards were given out toemployees in recognition of theirservice with the Society ranging from25 to 45 years.

We would also like to offer our bestwishes for a long, healthy and happyretirement to all our retired formercolleagues.

obituariesSadly, we must record the deaths, overthe past year, of a number of peopleassociated with the Society.

to the families involved, we wouldlike to extend our deepest sympathy intheir sad loss. those who knew themwill remember them with affection and gratitude.

the heart of england co-operative differencethe Society believes that thisinformation demonstrates how itconsolidates the principles of co-operation into its everydayactivities, both locally and nationally,and how it further shows in a tangibleway what is meant by the Heart ofEngland Co-operative difference.Given that other types of organisationsexist primarily to maximise theirprofits in order to create wealth forshareholders, with little genuineconcern for the local community fromwhich these profits originate, the Heartof England Co-operative Societybelieves its approach provides tangibleevidence of an alternative andsuccessful model of business practice.

the profits we make produce directbenefit for our primary stakeholders,i.e. our customers, our members, ouremployees and our local communities.

for our customers We intend to continue to plough backa major proportion of our profits intoimproving our shops and otherfacilities, whilst also seeking newsuitable trading opportunities, toexpand our business throughout theheart of England.

for our employees Another successful trading year hasmeant that for the twenty secondsuccessive year our unique staff bonusscheme has been implemented. this is inkeeping with our aim of making theHeart of England Co-operative Societyan excellent place to work, by providingemployees with security of employment,competitive remuneration packages andgood career opportunities.

for our local communities Our commitment to giving a percentageof our profits to help local causesresulted in more than £951,000 beingpledged for this purpose since theinitiative was launched in 2000.

We are now excited to announce that,through the Helping Hearts Awardscheme the figure has reached £1 million, an unprecedentedachievement in support of our localcommunities.

Our locally elected Education/Memberrelations Committees have so farprovided assistance to over 4,700 localgood causes through this scheme.

In recent years we have invested millionsof pounds to benefit local communities,and we continue to invest a major part ofour profit back into creating new andmodern stores and services; following theprinciples of co-operation set out manygenerations ago.

to the future Increasing sales levels, whilst carefullycontrolling costs, remains the best wayto achieve a consistent growth inprofits and in the long-term maintainour Society’s outstanding level ofsuccess.

We intend to continue with ourstrategy of renewing and expandingour businesses and the cash reserveswe have built up will enable us tocontinue to do this without the needfor any external financial assistance inthe short-term.

In spite of these pressures, we intendto maintain our unique position in theheart of England by building on ourreputation as one of the uK’s leadingretail co-operatives by continuing to:-

• Develop profitable trading activities.• Maintain community friendly miinitiatives and policies.

In spite of the uncertain economicoutlook ahead, we remain optimisticabout our Society’s future prospects asone of the leading independentregional co-operative societies.

C. E. Miles - President

A. Kurji – Chief Executive

I. Bain - Financial Controller & Secretary

27th March 2018

8 ANNUAL REPORT AND FINANCIAL STATEMENTS

We have supported the Guide Dogs since 2016.

directors’ report

Our client surveys continue to show avery positive experience from our clientfamilies with a high percentage statingthey would use or recommend ourservices again when the need arises.

Once again, over the Christmas periodwe organised numerous local MemorialServices in tandem with our memorialChristmas tree initiative which was verymuch appreciated by our client families.

membershipOur membership now stands at137,000 following a review of thedormant accounts.

supplier payments policyIt is the Society’s policy to agree andclearly communicate the supplierpayment terms we operate as part of thecommercial arrangements negotiatedwith suppliers, and then pay accordingto those terms based upon the timelyreceipt of accurate invoices.

trade creditor days of the Society forthe year ended 20th January 2018 were24 days (2017:21 days). this representsthe ratio, expressed in days, betweenthe amounts invoiced to the Society byits suppliers in the year and the

amounts due at the year end, to tradecreditors within one year.our employeesWe have placed great emphasis ontraining and development of ouremployees at all levels throughout theSociety. this is supported by ourtraining department headed byCatherine Evans.

We remain committed to realising thepotential of every member of staffwithin our Society.

appreciationWe would like to take this opportunityto thank all our staff for their personalefforts during the year which has trulybeen a very difficult trading year.

sale of carrier bagsthe Society raised in excess of£49,000 from the sale of carrier bagsas a result of which a number ofcharities have benefited.

society charitythe Society raised in excess of£16,700 on behalf of the Guide Dogsduring the year. this amount wastopped up from the sale of carrier bags

making a total donation of £25,000and over the two years, the Society hasdonated £50,000 to the Guide Dogs.

We wish to thank all the employeeswho played an active part in variousfundraising activities during the year.

the Society won the prestigiousCorporate Commitment to theCommunity Award in the Coventrytelegraph Business Awards at thericoh Arena for our consistent effortsfor the benefit of our membership andthe community.

the staff have voted for Zoe’s PlaceBaby Hospice as our nominatedCorporate Charity for 2018. We hopeto raise more money for this noblecharity which provides one-to-onepalliative, respite and end of life carefor babies and children from birth tofive years with life threatening and lifelimiting conditions.

society head officeFor the past six years, the Society hasbeen in regular discussions with theNuneaton and Bedworth BoroughCouncil about their plans to re-developthe town centre. the Society arecurrently in negotiations for the sale ofour head office site. It is with greatreluctance that the Society had nochoice but to move out to newpremises.

We have been searching for some timefor a new head office building in theNuneaton area. However, despite ourconcerted efforts to find a suitable siteand premises in Nuneaton, we havenot been successful. Consequently, wehave had no alternative but to relocateto the nearest available location whichmeets our requirements. We haverecently identified a site which meetsour requirements just north ofCoventry at Whittle House, CourtauldsWay, Coventry on the formerCourtaulds site.

ANNUAL REPORT AND FINANCIAL STATEMENTS10 11HEART OF ENGLAND CO-OPERATIVE SOCIETY

directors’ statementon corporate governance

As a co-operative your Society seeks tooperate its business in accordance withco-operative values and principles. toassist in monitoring our performance,we adopt a standard set of key co-operative and social performanceindicators, which have been producedby Co-operativesuk.

member economicinvolvementthis is a measure of the amount of ourtrade which is conducted withmembers as a proportion of ourturnover. One of the key benefits ofmembership of the Heart of EnglandCo-operative Society is to share in thesuccess of the Society. It is not feasibleto identify a meaningful percentage oftrade that distinguished betweenmembers and non-members.

member democraticparticipationAs a co-operative it is important ourmembers are engaged with us at ademocratic level, so we measure theproportion of our members who vote inthe elections for the board. there wasno requirement for any voting forDirector appointments this year, onlyterms of office.

participation of employeesin training and educationEach year we calculate how much timeon average each employee has spent ontraining. During the year the Societyprovided 3,635 hours of training to ouremployees (2017:3,487 hours), whichequates to an average of 7.90 hours perfull-time equivalent employee(2017:7.12 hours).

staff injury and absentee ratesWe measure and record the totalnumber of accidents and reportableaccidents which occur each year.During the year the Society hasrecorded a total of 12 reportableaccidents (2017:3) and 52 minor

accidents (2017:49). the averagenumber of absence days was 2.47.

staff profile – gender andethnicitythe Society records the gender andethnicity of its employees. this year61% of our employees are female(2017:60%) and 39% male (2017:40%). We also monitor the diversity of our staff and currently 6% have an ethnic minority background (2017:6%).

customer satisfactionCustomer satisfaction is fundamental tothe success of our business. Weregularly seek feedback from ourcustomers to try and gauge levels ofsatisfaction through the media ofsurveys, feedback questionnaires andrandom sampling. We activelyencourage our customers to feed backtheir comments direct to the ChiefExecutive, both positive and negative,in order that we can continue todevelop and improve in the area ofcustomer service. In the funeraldivision we regularly send outcustomer feedback questionnaires toour clients, and in the food division weprovide point of sale comment cardsfor customers to fill in there and thenor to take away with them. We monitorall responses. the nature of thecustomer feedback we seek in the fooddivision does not provide a percentagesatisfaction rating.

consideration of ethicalissues and procurement andinvestment decisionsthe Heart of England Co-operativeSociety is a member of the Federalretail trading Services (FrtS). We actively support the ethical buyingpolicies of FrtS including promotingFairtrade merchandise. the Societyalso sources products from andmaintains links with, whereverpracticable, a number of other uK co-operative businesses and

organisations that are committed to theapplication of the same co-operativevalues.

investment in communityand co-operative initiativesWe report on the percentage of our pre-tax profits which are invested incommunity or co-operative initiatives.Since the inception of its HelpingHearts scheme the society has donated£951,000 and a further £60,000 hasbeen committed in the period. theannual commitment this yearrepresents 1.1% of our pre-tax profits.

net CO2 emissions arisingfrom operationsWe record the net tonnes of CO2 whichare emitted from energy used by all ouron-site operations. During the year theSociety generated 3,980 tonnes of CO2

(2017:5,172 tonnes), which is equivalentto 8.65 tonnes per full-time equivalentemployee (2017:10.56 tonnes), oralternatively 51.40 tonnes per £1m ofturnover (2017:68.34 tonnes).

waste recycledWe measure and report on thepercentage of our waste which isdiverted from landfill as a percentageof our total waste. During the year theSociety generated 2,026 tonnes ofwaste (2017:2,281 tonnes) of which39.5% was recycled (2017:37.0%). theSociety is always exploring new waysto generate less waste and to increasethe level of recycling we achieve.

co-operative, environmental andsocial performance indicators

statement under themodern slavery act 2015We have reported on our ethicalapproach to procurement for a numberof years. Last year for the first timewe were required by law to publish astatement outlining the steps we havetaken during the financial year toensure that slavery and humantrafficking are not taking place in ourbusiness or supply chain.

We are a complex business with avariety of different supply chains. Wehave initiated a review of the supplierarrangements with all of our trading,non-trade and administrative divisionsso we can report morecomprehensively in the future.

We have tracked procurement in ourfood division for many years and canconfirm that 100% of our foodprocurement is done throughmembership of Federal retail tradingServices Limited which is managed bythe Co-operative Group in accordancewith their ethical buying policieswhich we support. the Co-operativeGroup has stated that it is committedto developing fair and sustainablerelationships with suppliers across itssupply chain.

In respect of all other procurement weoperate a zero tolerance policytowards slavery and humantrafficking. We have begun reviewingour suppliers to ensure there is noModern Slavery within our supplychain. We expect all those in oursupply chain and contractors tocomply with our values. the seniormanagers in all divisions areresponsible for compliance with theAct in their respective divisions andfor their supplier relationships.

this statement is made pursuant tosection 54(1) of the Modern SlaveryAct 2015 and was approved by theboard of directors on 27th March 2018.

C. E. Miles – President

directors’ statement oncorporate governanceAs a registered Society under the Co-operative and Community BenefitsSocieties Act 2014, the Society is notsubject to the provisions of the uKCorporate Governance Code. However,in November 2013, Co-operativesuk

(which is the representative body for co-operatives in the uK) published arevised Code of Best Practice – theCorporate Governance Code forConsumer Co-operative Societies (the ‘Code’).

the board has responsibility to outlinehow the Society has complied with theprinciples of the Code and to explain anyinstances of non-compliance. this reportcovers the period from 22nd January2017 to 20th January 2018.

society structureCo-operatives are member owneddemocratic organisations and theBoard has sought to encouragemembers to play their part in thegovernance of the business andimprove membership participation.the Society continues to activelypromote new membership andencourages existing members to re-register.

the Board of Directors currentlyconsists of nine members, directlyelected by the membership, whoappoint the President and VicePresident annually from within theirnumber.

A programme of continuingdevelopment and training is in placefor the board. the Board of Directorsbelieve that the experience gainedthrough their working career with theSociety and the common senseapproach used when making Boarddecisions is adequate. In addition noperformance evaluation of the Board orits individual Directors is undertaken.

the board It is the responsibility of the Board ofDirectors to determine the vision and thestrategy of the Society.

the Board of Directors is charged withensuring that the business of the Societyis conducted in accordance with the co-operative principles, and with theinterests of the Society and its membersuppermost at all times.

the Board of Directors also has theresponsibility for supervising the workof the Chief Executive and theManagement Executive.

the Board of Directors meet every fourweeks. they also meet twice a year asthe Audit Committee and would alsomeet as a Search Committee andremuneration Committee as required.

board balance andindependenceNo Director or member of theManagement Executive holds anyother significant directorships.

president of the societythe President of the Society is electedannually by all the Directors and theterm of office is for a period of twelvemonths. Whilst the rules of the Societydo not preclude an employee orrecently retired superannuatedemployee from being the President,the Directors believe that it is bestpractice not to elect the President fromthe employee Directors.

13HEART OF ENGLAND CO-OPERATIVE SOCIETYANNUAL REPORT AND FINANCIAL STATEMENTS12

audit committeethe full Board of Directors meet twicea year as the Audit Committee. thisCommittee is responsible forreviewing the effectiveness of theSociety’s systems of internal control.

the Committee meets to:-• Consider reports from the Management Executive, internal audit and external audit on the systems of internal control and any material control weaknesses.• Discuss with the Internal Auditor the actions taken on problem areas identified in these reports or by the Board.• review the effectiveness of the risk management process and ensure significant risk issues are referred to the Board for consideration so that appropriate steps can be taken to minimise such risks to the Society.• Consider the effectiveness of the operation of the internal audit function.• Consider the appointment of external auditors and in conjunction with management agree the nature and scope of the external audit review.• review the external audit findings report and the management response to the report.• recommend reviews of other areas of the business where a more

intense audit procedure is necessary.

the Audit Committee also has a dutyto discuss problems and reservationsarising from the Society’s audit andany matter the Auditor may wish todiscuss, if necessary, in the absence ofthe Chief Executive.

internal control frameworkthe Society has adopted an internalcontrol framework which the directorsconsider appropriate to its size anddiversity.

risk managementthe board and management executivehave the primary responsibility foridentifying key business risks facingthe Society and the development ofappropriate policies to manage theserisks.

control environmentthe Society has an appropriateorganisational structure for planning,executing, controlling and monitoringbusiness operations in order to achieveSociety objectives. Lines ofresponsibility and delegations ofauthority are documented. Also in placeare supporting Society policies andemployee procedures for the reportingand resolution of suspected fraudulentactivities.

control activities the Society and its operating units haveimplemented control proceduresdesigned to ensure complete andaccurate accounting for financialtransactions and to limit the potentialexposure to loss of assets or fraud.Measures taken include physicalcontrols, segregation of duties, reviewsby management and internal audit andexternal audit to the extent necessary toarrive at their audit opinions.

whistleblowingA documented whistle-blowingprocedure is in place to enable staff toraise concerns in confidence, in mattersof financial reporting, financial controlor any other issues. these procedures aremade available to staff at their time ofcommencing employment.

information andcommunicationSociety divisions participate in periodicstrategic reviews, which includeconsideration of long-term financialprojections and the evaluation ofbusiness alternatives. Operating unitsprepare annual budgets and performanceagainst budget is actively monitored atthe Board and divisional level supportedby regular forecasts. Forecasts and

results are consolidated and presented tothe Board on a regular basis.

through the above mechanisms, Societyperformance is continually monitored,risks identified in a timely manner, theirfinancial implications assessed, controlprocedures re-evaluated and correctiveactions agreed and implemented.

compliance statementthe Code recognizes that co-operativesocieties differ in scale, size, tradingprofile and resources, it is inevitablethat levels of implementation will differ.Elements of the code that the Societydoes not comply with include:

• the chair the Code states that the term of office of the Chair will be no longer than three years and may be renewed up to a total maximum service as Chair of six years. He or she will not be eligible for the office of Chair again.

the Board of Directors believe that the annual election of the President, coupled with the rules allowing for the removal of any Director under given circumstances, means that there is no further need for a mechanism to remove a poorly performing incumbent. the Board of Directors believe that the individual elected annually should be judged on merit and should not be restricted to a pre-set maximum term.

• chair appraisal the Code states that an appraisal of the Chair should be carried out at least annually in his or her absence to evaluate his or her performance, and on other such occasions as are deemed appropriate. the Board of Directors believe that the Chair is fully accountable to the membership and that the ultimate test of their performance is at election time.

• the chief executive the Code states that there should be a chief executive succession plan in place which should be reviewed annually.

the Board does not maintain a standing Search Committee; as such a Committee would comprise the full Board. A Search Committee is formed of the full Board of Directors when the existing Chief Executive announces their resignation or retirement.

the corporate governance compliance statement set out above is hereby signed on behalf of the Board of Directors pursuant to paragraph 165 of the Code.

I. Bain - Financial Controller & Secretary

27th March 2018

remuneration report

underlying principlesthe principle which the Society and theBoard adopt in relation to remunerationis that no-one should be involved inconsideration or determination of theirown remuneration package.

directorsthe Directors do not have servicecontracts. the years of their electionare shown on page 2 together with theexpiry of their current term of office.

Each Director is subject to re-electionevery three years. Directors’ fees areapproved by the Society’s members.the current fee levels wererecommended to the membership andapproved by them in May 2017.

the total fees received by eachDirector are set out on page 2.

management executive

elements of remunerationManagement Executive remunerationconsists of salary, pension and theprovision of a Society car.

salaryManagement Executive salaries arereviewed annually with any increasesnormally payable with effect from 1stJuly each year. Salaries paid to theManagement Executive in the financialyear ended 20th January 2018 are set outin Note 4 in the notes to the accounts.

the Board of Directors is of the opinionthat there is no value to be gained bydisclosing the individual ManagementExecutive remuneration packages.

service contractsNo member of the ManagementExecutive has a notice period of greaterthan 12 months.

pensionthe Management Executive aremembers of the Society’s DefinedBenefit pension scheme, as at 20thJanuary 2018. these schemes arefunded, Inland revenue approved,defined benefit final salary occupationalpension schemes. Members of the fundcontribute between 6.5% and 8.5%,dependant on age, of their pensionablesalary up to the Inland revenuemaximum. Basic salary is the onlyelement of remuneration that ispensionable.

statement of the directors’responsibilities the Board are required by the Co-operative and CommunityBenefit Societies Act 2014 to preparefinancial statements, which give a trueand fair view of the state of affairs ofthe Group at the end of each financialyear and of the income andexpenditure of the Group for the yearto that date. the financial statementsmust be prepared in compliance withthe required format and disclosures ofthe Co-operative and CommunityBenefit Societies Act 2014.

the Board confirm that:-

Suitable accounting policies,consistently applied and supported byreasonable and prudent judgementsand estimates, have been used in thepreparation of the Group’s financialstatements and applicable accountingstandards have been followed.

the Board are responsible for keepingproper accounting records, whichdisclose with reasonable accuracy at any time the financial position ofthe Group.

the Board have general responsibilityfor taking such steps as are reasonablyopen to them to safeguard the assets ofthe Group and to prevent and detectfraud and any other irregularities.

In so far as the Board are aware:-

there is no relevant audit informationof which the Group’s auditors areunaware; and

the Board have taken all steps thatthey ought to have taken to makethemselves aware of any relevant auditinformation and to establish that theauditors are aware of that information.

going concernAfter making all appropriate enquiriesthe Board have a reasonable expectation that the Group hasadequate resources to continue inoperational existence for theforeseeable future. For this reason,they continue to adopt the goingconcern basis in preparing the Group’saccounts.

Board certification:-

the accounts and notes on pages 17 to36 are hereby signed on behalf of theBoard pursuant to the Co-operativeand Community Benefit Societies Act 2014.

P. Elverson - Vice President

27th March 2018

independent auditor’s report

independent auditor’sreport to the members ofthe heart of england co-operative society limited

opinionWe have audited the financialstatements of the Heart of England Co-operative Society Limited (the‘parent society’) and its subsidiaries(the ‘group’) for the year ended 20 January 2018 which comprise theconsolidated income statement, theconsolidated statement ofcomprehensive income, theconsolidated statement of financialposition, the consolidated statement ofchanges in equity, the consolidatedstatement of cash flows and notes tothe financial statements, including asummary of significant accountingpolicies. the financial reportingframework that has been applied intheir preparation is applicable law andunited Kingdom Accounting Standardsincluding Financial reporting Standard102; the Financial reporting Standardapplicable in the uK and republic ofIreland (united Kingdom GenerallyAccepted Accounting Practice).In our opinion the financial statements:

• give a true and fair view of the state of the group’s and parent society's affairs as at 20 January 2018 and of the group’s and parent society's income and expenditure for the year then ended; • have been properly prepared in accordance with the Co-operative and Community Benefit Societies Act 2014.

basis for opinionWe have been appointed as auditorunder the Co-operative andCommunity Benefit Societies Act2014 and report in accordance withregulations made under that Act.We conducted our audit in accordancewith International Standards onAuditing (uK) (ISAs (uK)) andapplicable law. Our responsibilities

under those standards are furtherdescribed in the Auditor’sresponsibilities for the audit of thefinancial statements section of ourreport. We are independent of thesociety in accordance with the ethicalrequirements that are relevant to ouraudit of the financial statements in theuK, including the FrC’s EthicalStandard, and we have fulfilled ourother ethical responsibilities inaccordance with these requirements. Webelieve that the audit evidence we haveobtained is sufficient and appropriate toprovide a basis for our opinion.

who we are reporting tothis report is made solely to thesociety's members, as a body, inaccordance with regulations madeunder Sections 87(2) and 98(7) of theCo-operative and Community BenefitSocieties Act 2014. Our audit workhas been undertaken so that we mightstate to the society's members thosematters we are required to state tothem in an auditor's report and for noother purpose. to the fullest extentpermitted by law, we do not accept orassume responsibility to anyone otherthan the society and the society'smembers as a body, for our auditwork, for this report, or for theopinions we have formed.

conclusions relating togoing concernWe have nothing to report in respect of the following matters in relation towhich the ISAs (uK) require us toreport to you where:

• the Board’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the Board has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or parent society’s ability to continue to adopt the going concern basis of accounting for a period of at least

twelve months from the date when the financial statements are authorised for issue.

other informationthe Board is responsible for the otherinformation. the other informationcomprises the information included inthe Annual report, set out on pages17 to 36 other than the financialstatements and our auditor’s reportthereon. Our opinion on the financialstatements does not cover the otherinformation and, except to the extentotherwise explicitly stated in our report,we do not express any form of assuranceconclusion thereon. In connection withour audit of the financial statements, ourresponsibility is to read the otherinformation and, in doing so, considerwhether the other information ismaterially inconsistent with the financialstatements or our knowledge obtained inthe audit or otherwise appears to bematerially misstated. If we identify suchmaterial inconsistencies or apparentmaterial misstatements, we are requiredto determine whether there is a materialmisstatement in the financial statementsor a material misstatement of the otherinformation. If, based on the work wehave performed, we conclude that thereis a material misstatement of this otherinformation, we are required to reportthat fact.We have nothing to report in this regard.

matters on which we arerequired to report byexceptionWe have nothing to report in respect ofthe following matters where the Co-operative and Community BenefitSocieties Act 2014 requires us toreport to you if, in our opinion:

• a satisfactory system of control over transactions has not been maintained; or• the parent society has not kept proper accounting records;• the financial statements are not in agreement with the books of account; or

• we have not received all the information and explanations we need for our audit.

responsibilities of thedirectors for the financialstatementsAs explained more fully in the Statementof Directors’ responsibilities set out onpage 14, the directors are responsible forthe preparation of the financialstatements and for being satisfied thatthey give a true and fair view, and forsuch internal control as the directorsdetermine are necessary to enable thepreparation of financial statements thatare free from material misstatement,whether due to fraud or error.

In preparing the financial statements, thedirectors are responsible for assessing thegroup’s and parent society’s ability tocontinue as a going concern, disclosing,as applicable, matters related to goingconcern and using the going concernbasis of accounting unless the Boardeither intend to liquidate the group orparent society or to cease operations, orhave no realistic alternative but to do so.

auditor’s responsibilities forthe audit of the financialstatementsOur objectives are to obtain reasonableassurance about whether the financialstatements as a whole are free frommaterial misstatement, whether due tofraud or error, and to issue an auditor’sreport that includes our opinion.reasonable assurance is a high level ofassurance, but is not a guarantee thatan audit conducted in accordance withISAs (uK) will always detect amaterial misstatement when it exists.

Misstatements can arise from fraud orerror and are considered material if,individually or in the aggregate, theycould reasonably be expected toinfluence the economic decisions ofusers taken on the basis of thesefinancial statements.

A further description of ourresponsibilities for the audit of thefinancial statements is located on theFinancial reporting Council’swebsite at:www.frc.org.uk/auditorsresponsibilities.this description forms part of ourauditor’s report.

Grant thornton uK LLPStatutory Auditor,Chartered AccountantsBirmingham27 March 2018

independent auditor’s report accounting policiesfor the year ended 20th January 2018

1. STATUTORY INFORMATIONHeart of England Co-operative SocietyLimited is a co-operative societydomiciled in England and Wales,registration number 2399r. theSociety is registered under the Co-operative and Community BenefitsSocieties Act 2014. the registeredoffice is 22 Abbey Street, Nuneaton,Warwickshire, CV11 5Bu.

2. BASIS OF PREPARATIONStatement of compliancethe financial statements have beenprepared in accordance with Financialreporting Standard 102 – ‘theFinancial reporting Standardapplicable in the united Kingdom andrepublic of Ireland’ (‘FrS 102’).there were no material departuresfrom that standard.

Basis of preparation of financial statementsthe principal accounting policiesadopted in the preparation of thefinancial statements are set out belowand have remained unchanged from theprevious year, and also have beenconsistently applied within the sameaccounts.

the financial statements have beenprepared under the historical costconvention as modified by therevaluation of certain fixed assets. the presentation currency is £ sterling.

Use of estimates and judgementsthe preparation of the financialstatements requires management tomake significant judgements andestimates. the items in the financialstatements where these judgements andestimates have been made include:

NoteValuation of trading properties 8Valuation of investment properties 9Valuation of assets held for sale 8Estimate of deferred consideration 12Measurement of pension obligations 15Valuation of insurance contracts 10

- Property valuations – the valuation and potential impairment of property assets is an area of estimation. Management control this risk through the use of qualified property professionals to support their decision making.- Insurance contracts – the assumptions used in the valuation of funeral plan assets and liabilities represent a key area of estimation in the financial statements. Management have commissioned a qualified actuary to assist their decision making in this area.- Deferred consideration – the estimate of the potential receipt of future deferred consideration on property sales. Management control this risk by regular meetings with the parties involved to ensure that the receipt of the deferred consideration is being protected.- Pension schemes – the variables used in the valuation of the pension schemes are inherently uncertain. Management utilise a qualified actuary to support their calculations in this area.- Management make other judgements in the course of their preparation of the financial statements including stock provisions, supplier rebates, debtor impairments, accruals for costs and so on. these are considered of low estimation uncertainty or are of lower value and hence have a lower impact on the financial statements.

Basis of consolidationthe consolidated financial statementsinclude the Society and its subsidiaryundertaking, Chartridge PropertiesLimited, a company registered inEngland and Wales. ChartridgeProperties Limited is now dormant.

Exceptional itemsExceptional items are material items ofincome and expenditure which byvirtue of their size and nature areseparately disclosed to assist in thebetter understanding of the Society’sperformance. the following items areconsidered to be exceptional in thesefinancial statements, all costs related tothe closure of a Food store and

impairment charges relating to assetsfor resale.

Discontinued activitiesthe Society recognises as discontinuedactivities components which have beenclosed or disposed of and whichrepresented a separate major line ofbusiness or geographical area ofoperation. the Society closed its Non-Food division in the prior year and theresults of this division have thereforebeen presented as discontinued in theconsolidated income statement.

Going concernAfter reviewing the group’s forecastsand projections, the directors have areasonable expectation that the grouphas adequate resources to continue inoperational existence for theforeseeable future. the group thereforecontinues to adopt the going concernbasis for preparing its consolidatedfinancial statements.

3. ACCOUNTING REFERENCEDATESthe financial statements of the Societyare for the 52 weeks ended 20thJanuary 2018 and are compared with a52 week period to 21st January 2017.

4. ACCOUNTING POLICIESGoodwill and intangiblesIntangible assets are measured at costless accumulated amortisation and anyaccumulated impairment losses.

Goodwill, being the excess of theconsideration paid for a business overthe fair value of its net assets,capitalised and amortised evenly overits useful economic life.

the intangible assets are amortisedover the following useful economiclives:

Goodwill - 10 years

Property, plant and equipmentAfter initial recognition, classes of assetvalued under the cost model are carriedat cost less any accumulateddepreciation and any accumulatedimpairment losses. Classes of assetvalued under the revaluation model arecarried at a revalued amount, being theirfair value at the date of the revaluation,less any subsequent accumulateddepreciation and subsequentaccumulated impairment losses.

Depreciation is calculated to write offthe cost or valuation, less estimatedresidual value, in the income statementon a straight line basis over theestimated useful lives of each part ofan item of property, plant andequipment. Land is not depreciated.Depreciation methods, useful lives andresidual values are reviewed at eachreporting date.

Depreciation rates used are as follows:

Freehold buildings - 2% per annum Leasehold buildings - Over the unexpired term of the lease Plant, fixtures and fittings - 10% to 20% per annum Vehicles - 14.3% to 20% per annum

Impairment of assetsAt each reporting date assets arereviewed to determine whether there isany indication that those assets havesuffered an impairment loss. If there isan indication of possible impairment,the recoverable amount of any affectedasset is estimated and compared withits carrying amount. If estimatedrecoverable amount is lower, thecarrying amount is reduced to itsestimated recoverable amount, and animpairment loss is recognisedimmediately in the income statement.

If an impairment loss subsequentlyreverses, the carrying amount of theasset is increased to the revisedestimate of its recoverable amount, butnot in excess of the amount that wouldhave been determined had noimpairment loss been recognised forthe asset in prior years. A reversal ofan impairment loss is recognisedimmediately in the income statement.

Investment propertyInvestment property is carried at fairvalue. revaluation surpluses arerecognised in the income statement.Deferred taxation is provided on thesegains at the rate expected to applywhen the property is sold.

Other investmentsInvestments in unquoted shares arecarried at cost with any impairmentrecognised immediately in the incomestatement.

Funeral prepayment plans under whichthe Society accepts risk from anotherparty (the policyholder) by agreeing tocompensate the policyholder in respectof an uncertain future event areclassified as insurance contracts underFrS 103. A contract that qualifies asan insurance contract remains aninsurance contract until all the risksand obligations are extinguished orexpire. they are carried at fair value,which is based on the ‘at need’ pricediscounted over the average life of aplan at the risk free rate over acomparable period. the asset valuereflects the current fund value plus amargin to include an allowance forfuture asset growth. this margin iscalculated as the difference betweenthe best estimate value of liabilities,using a discount rate equal to theexpected return on assets, and thepresented liabilities using a discountrate equal to the risk-free rate ofreturn.Any movements in the fair valueare recognised in the income statementas they arise.

InventoriesInventories are stated at the lower ofcost and estimated selling price lesscosts to sell, less provision for anyobsolete or slow moving items.

Trade and other receivablesShort term receivables are measured attransaction price.

CreditorsShort term payables are measured attransaction price.

Financial instrumentsNon-basic financial instruments areinitially recognised at fair value on thedate a contract is entered into and aresubsequently re-measured at their fairvalue at each year end date. Changes inthe fair value of non-basic financialinstruments are recognised in theincome statement in finance costs orincome as appropriate.

LeasesLeases are classified as finance leaseswhenever the terms of the leasetransfer substantially all the risks andrewards of ownership of the leasedassets to the group. All other leases areclassified as operating leases.

Assets held under finance lease arerecognised initially at cost, with thecorresponding liability to the lessorbeing included in the statement offinancial position as a finance leaseobligation. Lease payments areapportioned between finance chargesand reduction of the lease obligationusing the straight line method. Financecharges are deducted in measuringprofit or loss. Assets held underfinance leases are included in property,plant and equipment, and depreciatedand assessed for impairment losses inthe same way as owned assets.

rental payments under operating leasesare charged to the income statement ona straight line basis over the lease term,unless rental payments are structured toincrease in line with expected generalinflation, in which case the group

recognises annual rent expense equal tothe amount owed to the lessor.

the aggregate benefit of leaseincentives are recognised as a reductionto the expense recognised over thelease term on a straight line basis.

Pension coststhe Society operates definedcontribution schemes for certainemployees. All costs relating to thedefined contribution schemes arecharged to the income statement asincurred.

the Society also operates two definedbenefit final salary pension schemescovering a large number of employees.the Society’s net obligation in respectof its defined benefit pension plan iscalculated by estimating the amount offuture benefit that employees haveearned in return for their service in thecurrent and prior periods. that benefit isdiscounted to determine its present value.Any unrecognised past service costs andthe fair value of any plan assets arededucted. the discount rate is the yield atthe reporting date on a high qualitycorporate bond that has a maturity dateapproximating to the terms of theSociety’s obligations. the calculation isperformed annually by a qualifiedactuary using the projected unit creditmethod. the Society recognises allactuarial gains and losses arising fromthe defined benefit plans directly in othercomprehensive income immediately.

TaxationCurrent tax is recognised for theamount of income tax payable inrespect of the taxable profit for thecurrent or past reporting periods usingthe tax rates and laws that have beenenacted or substantively enacted by thereporting date.

Deferred tax is recognised in respect ofall timing differences at the reportingdate, except as otherwise indicated.

Deferred tax assets are only recognisedto the extent that it is probable thatthey will be recovered against thereversal of deferred tax liabilities orother future taxable profits.

If and when all conditions for retainingtax allowances for the cost of a fixedasset have been met, the deferred tax is reversed.

Deferred tax is recognised whenincome or expenses from a subsidiaryor associate have been recognised, andwill be assessed for tax in a futureperiod, except where:- the group is able to control the reversal of the timing difference; and- it is probable that the timing difference will not reverse in the foreseeable future.A deferred tax liability or asset isrecognised for the additional tax thatwill be paid or avoided in respect ofassets and liabilities that are recognisedin a business combination. the amountattributed to goodwill is adjusted bythe amount of deferred tax recognised.Deferred tax is calculated using the taxrates and laws that have been enactedor substantively enacted by thereporting date that are expected toapply to the reversal of the timingdifference.

With the exception of changes arising onthe initial recognition of a businesscombination, the tax expense (income) ispresented either in the income statement,other comprehensive income or equitydepending on the transaction thatresulted in the tax expense (income).

Deferred tax liabilities are presentedwithin provisions for liabilities anddeferred tax assets within debtors.Deferred tax assets and deferred taxliabilities are offset only if:- the group has a legally enforceable right to set off current tax assets against current tax liabilities, and - the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority

on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Gross salesGross sales is a memorandumdisclosure and represents the totaltransaction value of all the Society’sservices.

Turnoverturnover includes cash sales, goods soldon credit and property rental income. It is stated net of VAt, discounts andincentives. Sales of goods are recognisedin the financial statements at the point ofsale. rental income is recognised on anaccruals basis.

Supplier rebatesthe Society receives supplier rebateincome from the buying group, Federalretail trading Services (FrtS) itoperates within. At year end, theSociety is required to estimate supplierincome due from annual agreementsfor marketing costs and volume rebateswhich span across the year end date.

Estimates are required due to the factthat final confirmation of someamounts due are often only receivedafter the year end date. All rebateincome is received from third partiesvia the supplier agreements with FrtS.the estimates for this income areprepared following discussions withFrtS throughout the year and areregularly reviewed by seniormanagement.

Share interestthe Society’s members’ share capitalmaintains a fixed nominal value andattracts interest. Share interest isdisclosed as a movement in equity and within the statement of changes in equity.

accounting policiesfor the year ended 20th January 2018

for the year ended 20th January 2018

consolidated income statement consolidated statement of comprehensive income

2018 2017 Total Total £ 000 £ 000 PROFIT FOR THE FINANCIAL YEAR 4 176 1 347 Actuarial gain/(loss) on defined benefit pension plans 529 (3 026)

Deferred tax movement relating to actuarial gains/(losses) (90) 251

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 4 615 (1 428)

GROSS VALUE OF SALES 77 427 73 568 2 110 75 678 Value added tax (5 702) (5 337) (308) (5 645)

TURNOVER 1 71 725 68 231 1 802 70 033

Cost of sales (45 972) (43 843) (1 474) (45 317)

Gross profit 25 753 24 388 328 24 716

Administrative expenses (21 484) (21 173) (1 055) (22 228)

Trading profit 2 4 269 3 215 (727) 2 488

Surplus on sale of fixed assets 1 376 2 056 - 2 056

Surplus on revaluation of investment properties 483 523 - 523

Exceptional items 3 (749) (564) (1 446) (2 010)

Fair value adjustment - funeral prepayment plans 2/10 126 (1 399) - (1 399)

Operating profit 5 505 3 831 (2 173) 1 658

Interest receivable and similar income 79 71 - 71

Interest payable and similar charges 5 (351) (363) - (363)

Profit on ordinary activities before taxation 5 233 3 539 (2 173) 1 366

Tax on profit on ordinary activities 6 (1 057) (454) 435 (19)

Profit for the financial year 4 176 3 085 (1 738) 1 347

Discontinuedoperations

Continuingoperations totalTotal

2018 2017

All activities in the current financial year relate to continuing operations.

£ 000 £ 000£ 000£ 000Note

23ANNUAL REPORT AND FINANCIAL STATEMENTS22

consolidated statement of financial position

Note 2018 2017 £ 000 £ 000

FIXED ASSETS Intangible assets 7 184 215Property, plant and equipment 8 22 887 28 860 Investment property 9 10 750 9 794Other investments 10 23 417 19 861

57 238 58 730

CURRENT ASSETS Other investments 10 797 703Inventories 11 2 806 2 799trade and other receivables 12 2 080 1 102Cash at bank and in hand 19 750 10 443

25 433 15 047CURRENT LIABILITIES

Creditors: amounts falling due within one year 13 (7 005) (5 472)

NET CURRENT ASSETS 18 428 9 575

TOTAL ASSETS LESS CURRENT LIABILITIES 75 666 68 305

LONG TERM LIABILITIES

Creditors: amount falling due after one year 14 (24 851) (21 414)

Pension obligations 15 (8 433) (9 303)

Provision for liabilities 16 (1 681) (1 540)

NET ASSETS 40 701 36 048

CAPITAL AND RESERVES Share capital 18 2 145 2 101revaluation reserves 19 5 041 5 295revenue reserves 19 33 515 28 652

MEMBERS’ FUNDS 40 701 36 048

as at 20th January 2018

Balance at 23rd January 2016 2 235 5 225 30 154 37 614

Profit for the financial year - - 1 347 1 347

Other comprehensive income:realised on disposal of investment properties - 70 (70) - Actuarial loss on defined benefit pension plans - - (3 026) (3 026)Deferred tax movement relating to actuarial losses - - 251 251 Total other comprehensive income - 70 (2 845) (2 775) 2 235 5 295 28 656 36 186

Movement in share capital (134) - - (134)

Share interest less related taxation deduction - - (4) (4)

Balance at 21st January 2017 2 101 5 295 28 652 36 048 Profit for the financial year - - 4 176 4 176

Other comprehensive income: realised on disposal of investment properties - (254) 254 -Actuarial gain on defined benefit pension plans - - 529 529Deferred tax movement relating to actuarial gains - - (90) (90)Total other comprehensive income - (254) 693 439

2 101 5 041 33 521 40 663

Movement in share capital 44 - - 44

Share interest less related taxation deduction - - (6) (6)

Balance at 20th January 2018 2 145 5 041 33 515 40 701

consolidated statement of changes in equity

Sharecapital

£ 000

Revaluationreserve

£ 000

Revenuereserves

£ 000

HEART OF ENGLAND CO-OPERATIVE SOCIETY

consolidated statement of cash flows

2018 2017 £ 000 £ 000 CASH FLOWS FROM OPERATING ACTIVITIES Profit for the financial year 5 505 1 658Adjustments for : Amortisation of intangible assets 31 31Depreciation of tangible assets 2 351 2 619Surplus on sale of fixed assets (1 376) (2 056)Surplus on revaluation of investment properties (483) (523)Fair value adjustment (126) 1 399 (Increase)/decrease in trade and other receivables (1 345) 437(Increase)/decrease in stocks (7) 1 349Increase/(decrease) in trade payables 730 (1 215)

Cash from operations 5 280 3 699

taxation received 384 102

NET CASH GENERATED FROM OPERATING ACTIVITIES 5 664 3 801

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the sale of tangible assets 6 639 3 176Purchase of tangible assets (2 113) (1 693)Pension scheme special contributions (1 000) (965) Interest received 79 71

NET CASH FROM INVESTING ACTIVITIES 3 605 589

CASH FLOWS FROM FINANCING ACTIVITIES Movement in share capital 44 (134)Share interest paid (6) (4)

NET CASH GENERATED/(USED) IN FINANCING ACTIVITIES 38 (138)

NET CASH INCREASE IN CASH 9 307 4 252AND CASH EQUIVALENTS

Cash and cash equivalents at the beginning of the year 10 443 6 191

CASH AND CASH EQUIVALENTS AT THE 19 750 10 443END OF THE YEAR

COMPONENTS OF CASH AND CASH EQUIVALENTSCash 19 750 10 443Cash equivalents - -

19 750 10 443

notes to the financial statements

1. TURNOVER

£ 000 £ 000 £ 000 £ 000

Food 67 084 61 491 64 192 58 952Non-food - - 2 102 1 795Funeral 9 418 9 309 8 397 8 299Post office - - 7 7Property 925 925 980 980

77 427 71 725 75 678 70 033

2. PROFIT BEFORE TAXthe profit on ordinary activities before taxation is stated after charging/(crediting):

2018 2017 £ 000 £ 000Auditor’s remuneration:Fees payable in respect of audit services 28 29Fees payable in respect of tax services 4 4Operating lease rentals: In respect of property 31 38In respect of plant and machinery 302 311Changes in fair value of funeral prepayment plans (126) 1 399Payments to and on behalf on stakeholders:Member privilege scheme 260 253Staff dividend 376 376Grants and donations 98 132

3. EXCEPTIONAL ITEMS

2018 2017 £ 000 £ 000

Impairment of fixed assets 646 943redundancy costs relating to closures 82 973Other closure costs 21 94

749 2 010

During the year the Society closed one Food store.

Grosssales

Turnover

Grosssales

turnover2018 2017

4. DIRECTORS AND EMPLOYEESDirectors’ remuneration

2018 2017 £ 000 £ 000 the total remuneration of the directors for their board duties was as follows:

Fees 21 23

the number of directors whose remuneration fell in each £5,000 bracket was as follows: Number Number£0 - £ 5 000 9 13

Staff costs during the year were as follows: 2018 2017 £ 000 £ 000

Wages and salaries 9 334 9 565Social security costs 607 633Other pension costs 961 797

10 902 10 995 the average number of employees of the Society during the year was:

2018 2017 Number Number

Full-time 189 211Part-time 541 557

730 768

Management executive remuneration 2018 2017 £ 000 £ 000

the total remuneration of the management executive was as follows:

Salaries 504 527taxable benefits 44 37Pension contributions 26 21

574 585

£ 25,001 - £ 30,000£ 45,001 - £ 50,000£ 60,001 - £ 65,000£ 80,001 - £ 85,000£ 85,001 - £ 90,000£ 110,001 - £ 115,000£ 115,001 - £ 120,000£ 190,001 - £ 195,000£ 195,001 - £ 200,000

4. DIRECTORS AND EMPLOYEES (CONTINUED)Chief executive remuneration 2018 2017 £ 000 £ 000

the remuneration of the Chief executive (who is also the highest paid employee) included above was as follows:

Salary 188 184taxable benefits 9 8

197 192

the following number of management executive employees received remuneration including taxable benefits (excluding pension contributions) falling within the following ranges:

2018 2017 Number Number

- 1 - 1 1 1 - 1 2 - - 1 1 - - 1 1 -

5. INTEREST PAYABLE AND SIMILAR CHARGES 2018 2017 £ 000 £ 000

Bank charges 49 51Net interest costs on pension scheme 302 312

351 363

notes to the financial statementsfor the year ended 20th January 2018

6. TAX ON PROFIT ON ORDINARY ACTIVITIES the tax charge is based on the profit for the year and represents: 2018 2017 £ 000 £ 000

a) Analysis of charge in the yearuK Corporation tax 847 267Adjustment in respect of prior periods (19) 7

total current tax 828 274

Deferred taxation: origination and reversal of timing differences 229 (362)Adjustment in respect of prior periods - 107

tax on results on ordinary activities 1 057 19

b) the tax assessed for the year is higher than the standardrate of corporation tax in the united Kingdom at 19.19%(2017: 20.00%). the differences are explained as follows:

Profit on ordinary activities before tax 5 233 1 366

Profit on ordinary activities multiplied by the standard rate of 1 004 273corporation tax in the united Kingdom of 19.19% (2017: 20.00%)Expenses not deductible for tax purposes 72 (368)Prior year adjustments (19) 114

tax on result on ordinary activities 1 057 19

the aggregate current and deferred tax relating to items that are recognised as items of other comprehensive incomeis a charge of £89,930 (2017: a credit of £251,420).

7. INTANGIBLE FIXED ASSETS Goodwill

£ 000Cost as 20th January 2018 and 21st January 2017 417

AMORTISATION

At 21st January 2017 202Provided in the year 31

At 20th January 2018 233

NET BOOK VALUE 2018 1842017 215

8. PROPERTY PLANT AND EQUIPMENT

£ 000 £ 000 £ 000 £ 000 £ 000CostAt 21st January 2017 16 018 10 317 20 148 791 47 274Additions 542 335 1 041 - 1 918Disposals - (6 355) (518) (73) (6 946)transfers (709) - - - (709) At 20th January 2018 15 851 4 297 20 671 718 41 537

Depreciation and impairmentAt 21st January 2017 1 642 1 935 14 402 435 18 414Provided in the year 224 11 1 350 120 1 705Impairment - 640 6 - 646Disposals - (1 637) (395) (62) (2 094)transfers (21) - - - (21)

At 20th January 2018 1 845 949 15 363 493 18 650

NET BOOK VALUE

2018 14 006 3 348 5 308 225 22 887

2017 14 376 8 382 5 746 356 28 860

All properties held by the Society were valued by Bruton Knowles, as at 20th January 2018 on the basis of open market value for existing use. this valuation shows an excess over book value of some £2m before taxation, which is not reflected in thefinancial statements.trade properties with a carrying value of £10,542,186 (2017: £8,490,560) are pledged as security against the Society’s definedbenefit pension schemes.

Tradeproperties

Assets held for resale

Fixtures, fittings & plant

Transport Total

9. INVESTMENT PROPERTY Total £ 000

Fair value at 21st January 2017 9 794

Additions 196Disposals (411)transfers from property, plant and equipment 688revaluations 483

Fair value at 20th January 2018 10 750

Investment properties were revalued by Bruton Knowles, as at 20th January 2018.

10. OTHER INVESTMENTS

2018 2017 £ 000 £ 000Non-current investmentsFinancial assets 481 481Financial assets designated at fair value through the income statement 22 936 19 380

23 417 19 861Are held as follows:Co-operative Group shares 476 476Other I & P Societies shares 5 5

total financial assets 481 481

Funeral prepayment plans 22 936 19 380

23 417 19 861

2018 2017 Current investments: £ 000 £ 000

Financial assets designated at fair value through the income statement 797 703

797 703

2018 2017Income Statement: £ 000 £ 000

Fair value adjustment for funeral prepayment plan 126 (1 399)

Moneys received in respect of funeral prepayment plans are invested in individual whole of life insured arrangements with royalLondon Mutual Insurance Society Limited. Interest earned on such investments is reinvested. An appropriate proportion of theinvestments is withdrawn when each funeral plan is received by the client representative. Financial assets are held at cost. the Society’s exposure to credit risk and interest rate risks related to other investments is disclosed in Note 22.

11. INVENTORIES

2018 2017 £ 000 £ 000

Finished goods 2 806 2 799

Finished goods recognised as a cost of sale amounted to £46,231,347 (2017: £45,317,689).

12. TRADE AND OTHER RECEIVABLES

2018 2017 £ 000 £ 000

trade debtors 133 164Corporation tax - 365VAt - 67Other debtors 1 209 99Prepayments and accrued income 738 407 2 080 1 102

the Society’s exposure to credit risk and impairment losses related to trade and other receivables is disclosed in Note 22.

13. CREDITORS – AMOUNTS FALLING DUE WITHIN ONE YEAR 2018 2017 £ 000 £ 000

trade payables 3 067 2 617Corporation tax 847 -Holiday pay 289 276VAt 42 -Funeral prepayment plans 864 777Other taxes and social security 166 159Share interest 5 4Accruals and deferred income 1 725 1 639

7 005 5 472

14. CREDITORS – AMOUNTS FALLING DUE AFTER ONE YEAR 2018 2017 £ 000 £ 000

Funeral prepayment plans 24 851 21 414

24 851 21 414

SAPS2 basedon year of birth

with anallowance for

CMI 2015improvements

and 1% long term trend

85% takemaximum

allowable cashon retirement

15. PENSION OBLIGATIONS

the Society operates two defined benefit final salary pension schemes, covering a large number of employees, which are fundedby payment of contributions to separately administered funds.

the Society will merge its two pension schemes into a single scheme in 2018.

the contributions to the funds are determined with the advice of an independent qualified Actuary on the basis of triennialvaluations using the aggregate and projected unit methods of funding as appropriate.

the Coventry & District Co-operative Society Limited Employees’ Superannuation Fund was closed to new entrants following thetransfer of engagements to East Mercia Co-operative Society Limited in September 1991. the Heart of England Co-operativeSociety Limited Employees’ Superannuation Fund was closed to new entrants in October 2012. the assets continue to beadministered by trustees and the investments are managed by Schroder Investment Management.

Costs and liabilities of the scheme are based on actuarial valuations. the latest full actuarial valuation was carried out at 5th April2015 and updated to 20th January 2018 by a qualified independent Actuary employed by KPMG LLP (uK). the followingdisclosure shows the position of the combined funds. the Actuary has used the same assumptions for each fund.

the main assumptions used by the Actuary were: 2018 2017 % %

rate of increase in salaries 3.25 3.30rate of increase in pensions in payment 3.25 3.30Discount rate 2.50 2.80Future pension increases – post 97 pension 3.10 3.15Future pension increases – pre 97 pension 1.55 1.55Mortality – actuarial tables used

Male life expectancy at age 65 for current 65 year old 21.9 22.0Male life expectancy at age 65 for current 45 year old 23.1 23.3Female life expectancy at age 65 for current 65 year old 23.8 24.0Female life expectancy at age 65 for current 45 year old 25.0 25.5Cash commutation

SAPS2 based onyear of birth withan allowance for

CMI 2016improvements and

1% long term trendand a 7.5 Period

SmoothingParameter

85% takemaximumallowable

cash onretirement

15. PENSION OBLIGATIONS (CONTINUED)

Where investments are held in bonds and cash, the expected long term rate of return is taken to be the yields generally prevailingon such assets at the consolidated statement of financial position date. A higher rate of return is expected on equity investments,which is based more on realistic future expectations than on the returns that have been available historically.

the amounts recognised in the statement 2018 2017of financial position are as follows:- £ 000 £ 000

Present value of funded obligations (63 675) (61 465)Fair value of scheme asset 53 515 50 256

Deficit (10 160) (11 209)

related deferred tax asset 1 727 1 906

Net liability (8 433) (9 303)

the amounts charged in the income statement are as follows:-

Current service cost 765 616Net interest costs 302 312

1 067 928

Changes in the fair value of the scheme assets are as follows: 2018 2017 £ 000 £ 000

Opening fair value of scheme assets 50 256 45 044Interest income 1 400 1 675 Actuarial gains 2 379 4 322Contributions by employer 1 587 1 527Contributions by scheme participants 230 269Benefits paid (2 337) (2 581)

Closing fair value of scheme assets 53 515 50 256

the Society expects to contribute £1,500,000to its pension scheme in 2018.

the main categories of scheme assets as a percentage of 2018 2017total scheme assets are as follows: % % Schroder Life Diversified Growth Fund 59.1 57.9Schroder Life Indexed Linked Bond Fund 29.8 31.0Schroder All Maturities Corporate Bond Fund 11.1 11.1

15. PENSION OBLIGATIONS (CONTINUED)

the pension scheme assets include no assets from the Society’s own financial instruments. the pension scheme assets include no property occupied by, or other assets used by, the Society. the Society has pledged various properties to the pension scheme.

the actual return on scheme assets were as follows: 2018 2017£ 000 £ 000

Actual return on scheme assets 3 779 5 997

Changes in the present value of defined 2018 2017benefit obligations are as follows: £ 000 £ 000

Opening scheme liabilities (61 465) (53 826)Service cost (765) (616) Interest cost (1 702) (1 987)Actuarial losses on assumptions (2 328) (8 889)Actuarial gains on experiences 478 1 541Contributions by employees (230) (269)Benefits paid 2 337 2 581

Closing scheme liabilities (63 675) (61 465)

16. PROVISION FOR LIABILITIESDeferred taxation

£ 000

At 21st January 2017 1 540Origination and reversal of timing differences 141

At 20th January 2018 1 681

17. DEFERRED TAXATION

Deferred taxation provided for at 17% (2017: 17%)in the financial statements is set out below:

2018 2017£ 000 £ 000

Accelerated capital allowances 990 815Other timing differences (35) (18)revaluation adjustments 726 743 1 681 1 540

18. SHARE CAPITAL

2018 2017 £ 000 £ 000

At 21st January 2017 2 101 2 235Contributions 122 114Interest 6 4

2 229 2 353

Withdrawals (84) (252)

Balance at 20th January 2018 2 145 2 101

the whole of the share capital comprises of non-equity shares of £1 each attracting interest between 0% and 1% per annumdepending on the amounts. Shares are withdrawable by giving one week’s notice to the Society. However, this requirement hasbeen waived by the Directors in accordance with rule 28(b), and therefore the share capital has been classified as equity inaccordance with FrS 102. Every member who has been a member of the Society for not less than six months and holds aminimum of one £1 share is entitled to one vote.

19. RESERVES

Share capital – represents the nominal value of shares that have been fully paid.

revaluation reserve – represents the difference between the revalued amount and the cost value of certain financial assets.

revenue reserves – includes all current, prior period retained profits and losses.

20. CAPITAL COMMITMENTSthe Society had capital commitments relating to property, plant and equipment of £10,025,240 (2017: £5,516,294).

21. LEASING COMMITMENTS

the Society had total commitments under non-cancellable operating leases as detailed below:

2018 2017 £ 000 £ 000

Within one year 339 281Within two to five years 528 575After more than five years 217 38

1 084 894

22. FINANCIAL RISK MANAGEMENT

the Society has exposure to two main areas of risk – customer credit exposure and funeral plan risk. to a lesser extent the Societyis exposed to interest rate risk.

Customer credit exposurethe Society may offer credit terms to its customers which allow the payment of the debt after delivery of the goods or services.the Society is at risk to the extent that a customer may be unable to pay the debt on the specified due date. this risk is mitigatedby the strong on going customer relationships.

Funeral plan riskthe Society operates prepaid funeral plan arrangements. there is a risk that inflationary pressures may increase the cost ofdelivery of funerals resulting in contracts becoming loss making in the long term. there are also actuarial risks surrounding the lifeexpectancies of policy holders. the Society manages these risks by regularly reviewing the policies and the cost of delivery offunerals to ensure that the portfolio is managed in a sustainable and profitable way.

23. FINANCIAL ASSETS AND LIABILITIES 2018 2017 £ 000 £ 000

Financial assets measured at fair value through the income statement 35 575 29 877

Financial assets measured at amortised cost 26 681 32 330

Financial liabilities measured at fair value through the income statement 34 148 31 494

Financial liabilities measured at amortised cost 4 368 3 056

24 RELATED PARTY TRANSACTIONS

there were no related party transactions to report.

community supportthe Society’s Helping Hearts Awardsscheme continues to be a huge success inthe local community, pledging in excess of£951,000 and helping over 4,700 groupssince its inception in the year 2000.

In 2017 we donated in the region of £47,000to over 240 charities and groups, with adiverse range of needs and challenges.

the Society was delighted to support theBarwell & Earl Shilton Disability Groupwhich supports the older generationwithin their region providing a weeklygroup of activities, lunches and trips. the Society has helped them onnumerous occasions as we recognise theimportance for people to maintain socialcircles as they become older, helping toprevent loneliness, improve mental healthand a sense of belonging.

Chilvers Coton Community School inNuneaton benefited from an Award tohelp them improve their garden areawhich is being used to grow plants andvegetables, in order to educate children onthe benefits of healthy eating.

Long Lawford Buddy Club projectreceived a donation, as the club aims tohelp people in their village andsurrounding areas with online access for

job searches and applications, helpingpeople find employment and breakingdown barriers of social isolation.

the Hummingbird Centre based inCoventry and rugby received a donationto help with the continued support ofcancer patients and families. the Centreprovides non-medical support topatients, which range from friendshipgroups, advice and information,complementary therapy sessions,counselling sessions and training courses.

carrier bag fundsWe have donated £50,000 from the sale ofsingle use carrier bags. A number of

Chilvers Coton Community School in Nuneaton following a donation for their gardening project.

Rugby 1st Responders receiving a donation from our carrier bag funds.

Society food stores asked shoppers to votefor their favourite charity through a tokenbox scheme. this has enabled the Societyto support 15 charities during the yearincluding the rugby 1st responders whoare a group of volunteers that respond to999 calls from the Ambulance Service inthe rugby and surrounding areas.

Coventry Telegraph Business AwardsIn November the Society was thrilled to beawarded the “Contribution to theCommunity Award” at the Coventrytelegraph Business Awards held at thericoh Arena, Coventry.

Coventry - UK City of Culture BidDuring the year the Society weredelighted to support the 2021 City ofCulture Bid and became a member of the2021 Club. the city of Coventry wasinstrumental in helping to build ourSociety which was originally formed inthe parish of Foleshill in 1832. We werethrilled when, in December, Coventrywas named the uK city of culture for2021. this will help boost the localeconomy, tourism, civic pride and accessto the arts and the Society will continue itssupport in the coming years.

christmas card competitionthe Society invited Primary Schoolchildren from across the trading region todesign our corporate Christmas cardincorporating the theme “What Christmasmeans to you”. the winner for 2017 wasEllie Payne from Abbots Farm JuniorSchool in rugby who produced acolourful design of a robin resting on abranch. Ellie was presented with a prizeand a cheque for £500 to help towardsschool equipment.

Coventry & Warwickshire HeroesIn May the Society was delighted to jointlysponsor the young Achiever Award at theCoventry & Warwickshire Hero Awards,which recognises the special contributionpeople have made in the local community.the 2017 Award winner was Sian Healy,who as a teenager had suffered relentlesscyber bullying. Sian eventually found thecourage to talk about the issue and is nowa fearless campaigner against trolling.Sian has raised funds for MIND andattends local schools to raise awareness ofcyber bullying and the impact it can haveon young people’s lives.

heart of england community foundationthe Society would like to thank the Heartof England Community Foundation, who administers our Helping HeartsAward scheme.

pamper with a hamper the Society once again teamed up withthe Coventry telegraph, Hinckley times,Nuneaton News and tNt Express for our‘Pamper with a Hamper’ campaign.Newspaper readers were asked tonominate a special person over the age of65 to receive a Christmas hamper. 200 hampers were distributed during thefestive season, which were packed byvolunteering employees, containingChristmas treats and Fairtrade items.One of the recipients was a 105 year oldlady, Winifred Willis who has been aSociety Member for 83 years.

member relationsthe three regional Member relationsCommittees, consisting of members andemployees, continue to support ourauxiliary groups, consider HelpingHearts applications and review activitiesfor members.

heart of england co-operative orchestrathe orchestra members worked especiallyhard in 2017 to mark their 100th yearAnniversary.

the orchestra began their centenarycelebrations in March with a concert in aidof the Gerald Durrell WildlifeConservation trust. the music during theevening was themed around nature andwildlife and they were honoured by thepresence of Gerald Durrell’s widow LeeDurrell and Milo Parker who plays the roleof young Gerald in the ItV series, theDurrells. the event was also joined by anadult choir and school choirs raising£3,000 for the trust.

the orchestra performed many successfulconcerts during the year for which thetotal amount raised for charity farexceeded any year in recent history. they also prepared and published a bookgiving the history of the orchestra overthe last 100 years, which has helped raisefurther funds for the group.

co-operative ladies choirthe Ladies Choir continue to entertainaudiences across the city of Coventryand recruiting many new members andenjoying regular rehearsals.

woodcraft folkthe Woodcraft Folk is a voluntary co-operative organisation for childrenand young people. the West CoventryWoodcraft Folk enjoyed many activitiesand discussions on various topicsincluding voting, elections and animalwelfare.

Camping was enjoyed by the group withoutdoor activities including tending to anallotment, planting seeds and learningabout food cycles and healthy eating.

Pamper with a Hamper winner

Since its launch the scheme has broughtus into contact with countless unsungheroes - such as those pictured here -working tirelessly to help people in their community. to date we havepledged £1million and given support to over 4,700 diverse organizations.Can we help you? Our network of local food stores andfuneral services stretches acrossCoventry, Warwickshire, SouthLeicestershire and Northamptonshire;if you need our support you can pickup a Helping Hearts application format any of our stores.

In January 2000 the Society launched a major new initiative underthe banner of ‘Helping Hearts Awards’ scheme, designed to reinvesta part of the Society’s profit into local community worthy causes.

HEART OF ENGLAND CO-OPERATIVE SOCIETYANNUAL REPORT AND FINANCIAL STATEMENTS40 ANNUAL REPORT AND FINANCIAL STATEMENTS 41HEART OF ENGLAND CO-OPERATIVE SOCIETY

trading area and operations

Balsall Common - Kenilworth Road ....................................01676 535006

Barwell - Malt Mill Bank......................................................01455 846200

Bishops Itchington - Chapel Street ....................................01926 612180

Coventry - Alfall Road, Wyken ..........................................024 7644 5916

Coventry - Allesley Old Road, Allesley ................................024 7667 2783

Coventry - Ansty Road, Wyken ..........................................024 7644 5616

Coventry - Earlsdon Street, Earlsdon ..................................024 7671 3377

Coventry - Norman Place Road, Coundon..........................024 7633 2548

Coventry - Tile Hill Lane, Tile Hill........................................024 7646 6170

Crick - High Street ...............................................................01788 822277

Fenny Compton - High Street.............................................01295 770246

Harbury - High Street..........................................................01926 612252

Long Itchington - Church Road..........................................01926 812411

Market Bosworth - Main Street .........................................01455 290231

Meriden - The Green ..........................................................01676 522378

New Arley - Gun Hill ..........................................................01676 540480

Nuneaton - Coniston Way, St Nicolas Park ........................024 7632 9974

Nuneaton - Copper Beech Road, Camp Hill .......................024 7639 2438

Nuneaton - Chesterton Drive, Galley Common .................024 7639 3962

Nuneaton - Kem Street, Attleborough ................................024 7634 4938

Nuneaton - School Road, Bulkington .................................024 7631 2146

Royal Leamington Spa - Warwick Gates, Cressida Close ........01926 426506

Rugby - High Street, Hillmorton ..........................................01788 543567

Rugby - Lawford Road, New Bilton ................................... 01788 536248

Rugby - The Green, Old Bilton ............................................01788 811774

Rugby - Townsend Lane, Long Lawford ..............................01788 565066

Ryton-On-Dunsmore - High Street....................................024 7630 2691

Sapcote - Church Street ......................................................01455 272257

Southam - Coventry Street..................................................01926 812308

Stoney Stanton - Long Street.............................................01455 273813

Warwick - Woodloes Avenue South....................................01926 493281

Wellesbourne - Loxley Close ..............................................01789 840861

Barlestone - ‘Gilliver’s’, Church Road ................................01455 290356

Bedworth - High Street ....................................................024 7631 4823

Coventry - Ansty Road, Wyken.........................................024 7665 0619

Coventry - Foleshill Road, Foleshill ....................................024 7666 5676

Coventry - Kenpas Highway .............................................024 7641 1806

Coventry - Lower Holyhead Road .....................................024 7622 5826

Daventry - High Street ......................................................01327 707905

Earl Shilton - Kings Walk...................................................01455 844400

Hinckley - ‘A J Murray’ Lower Bond Street.........................01455 233974

Kenilworth - Warwick Road ..............................................01926 856699

Nuneaton - Park House, Riversley Road ............................024 7638 2535

Royal Leamington Spa - Parade .......................................01926 428665

Rugby - Bilton Road...........................................................01788 576099

Customer ServicesNuneaton - Abbey Street..................................................024 7638 2331

Coventry - Co-operative food - Ansty Road......................024 7644 5616

Rugby - Co-operative food - The Green, Old Bilton............01788 811774

Barwell - Co-operative food - Malt Mill Bank.....................01455 846200

Head OfficeNuneaton - Abbey Street..................................................024 7638 2331

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