Annual Report 2020

PROGRESS AGAINST THE ODDS IN 2020
EXPERIENCE IS EVERYTHING
AREPORTON2020|1


© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021
CONTENTS
CEO Introduction
Our Purpose
Message from the Chair Our Values and Culture
REPORTS
Parnall Group
Trelonk Limited
Phytome Life Sciences Limited
Sustainaility and the Trelonk Environment
Parnall Solicitors Limited Parnall Aircraft Company The Parnall Foundation
Creating Long-Term Sustainability Risk Management
Key FInancials and COVID
A Year in Reflection Gallery
3 4 5
6-7
8-11 12-15 16-19
20-21
22-25 26-29 30-31
32-33 35 36-37 38-39


CEO INTRODUCTION
2020 Did not unfold as many of us expected. We have experienced every season through the lens of the coronavirus crisis and the precarity, danger and restrictions that have come along with it. Here at Trelonk it has been no exception, but we have strived to rise to the challenge of the past 12 months.
In Cornwall we are lucky to have the great outdoors to help lighten the burden – and so we’ve been putting it to good use. Calendula, borage, and hemp are among the crops harvested this year, and we are now in the process of planting a wider range of crops. The launch of our much-anticipated range of cold pressed and CO2 extracted plant oils is now firmly on the horizon for 2021. Our winter, in this respect, is shaping up to look more like an early spring.
But as our projects continue to blossom and mature in tandem, this year won’t be easily forgotten. We want to express our thanks for your commitment to our journey throughout this difficult time - it wouldn’t have been possible without you.
“Our work at Trelonk is exploring the application of cutting- edge technologies, to harness the full potential of plants.
Now more than ever, we need to secure safe and sustainable sources of medicine, food and smart materials. From the heart of rural Cornwall, we are creating that future.”
David Richards CBE, Director, Phytome Life Sciences Ltd
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WHO WE ARE
FOUNDATION
OUR PURPOSE
To bring impact and profit with a purpose. To bring a high-tech business campus to Cornwall for the long-term benefit of shareholders, stakeholders, the local community and economy. To provide enduring career opportunities and training for the local Cornish workforce.
Working with and developing synergies that exist with local businesses and educational establishments to create sustainable economic benefits for the local economy.
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


MESSAGE FROM THE CHAIR
It has been nearly 18 months since Mark Parnall asked me to join the Group as Executive Chair.
I have known Mark for a number of years and was first introduced to the amazing work being done throughout the Group and at Trelonk some two or three years ago and it was at one of our regular catch-up meetings that Mark asked me to come on board.
By way of a quick introduction I have lived in Cornwall for over 30 years and I have had a portfolio career for nearly 25 years, following
on from a successful career in the computing industry. I have balanced my business, innovation, and technology skills with work in education,
the arts, health care, agriculture and economic development, variously, as the Chair, Non Executive Director or Trustee, of a wide and varied group of organisations.
What has always impressed me is Mark’s entrepreneurial spirit and energy, and the diversity of the projects and schemes he is willing and able to initiate and develop. As many of you will know it is his energy and can-do attitude, that has encouraged the high calibre and quality of people who have joined the Group to develop our diverse range of operations.
Underlying all our activities is Mark’s desire
to ensure that our roots in and connection to Cornwall remain paramount, and the investments made in the Trelonk estate are testament to that. He sets the bar high for us all in ensuring that
our work is sustainable, of an exceptional quality and builds opportunity for future generations. The latter is very well demonstrated by the Group still working with young people even during
the difficulties of the lockdown. As a Group we are also keen to ensure we continue to develop
a nurturing culture that allows individuals to prosper and achieve their best.
As a year 2020 has brought its own issues and many of us will be pleased to see the back of
it, but the issues it has brought have driven us across the Group to work hard, and to a large degree smarter, in getting a number of the programmes very well advanced.
This Report for 2020 will provide you with a very clear overview of just what we have been doing and what we will be doing. We are ambitious and are poised to take the Group and its component elements to the next level.
Through this document my colleagues will be demonstrating what the Group will be able to achieve during 2021 and beyond, building on what we have achieved during a worldwide pandemic.
Taking the Group to the next level and beyond is something we are all committed to make happen.
Sincerely
Eur Ing Nick Buckland OBE CEng FIET FRSA
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“We’re creating an inclusive workplace that promotes and values diversity. Organisations that are diverse in age, gender identity, race, sexual orientation, physical or mental ability, ethnicity, and perspective are proven to be better places to work and are more successful. Importantly,
we are creating an environment where everyone, from any background, can do their best work. In short we see this as the right thing to do for the best of reasons.”
(Parnall Group Diversity & Inclusion Statement, 2020)
© COPYRIGHT 2021 PARNALL GROUP. | 3 FEB 2021


OUR VALUES
We are a company that is committed to providing equality of opportunity for everyone. We continue to create and foster an environment that values the individual, ensures collaboration and treats everybody the same and with dignity and respect.
We strive to attract a diverse set of individuals and see no bar at recruitment. We make this clear in our vacancy advertisements. Throughout the employee lifecycle, we aim to embed a culture that embraces our core company values that underpin not just what we do, but how we do it:
• We will keep things simple.
• We will be clear in our aims.
• We will support and encourage each other to become the best versions of ourselves.
• We want people to want to belong, not feel obliged to belong.
• We will not cut important corners to meet pointless deadlines.
• We will inspire everyone involved to provide their best.
We believe that by committing to our values and creating a diverse and inclusive workforce we are able to recruit, re-train and retain exceptional talent within our organisation.
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A REFLECTION ON THE YEAR
PARNALL GROUP
WHAT WE DO:
• Parnall Group is a diverse impact and investment company with its heart in the community providing the infrastructure for the successful independently managed companies of Parnalls Solicitors Limited, Parnall Aircraft Company Limited, Phytome Life Sciences Limited, and Trelonk Limited.
• A Leadership Programme providing a wide range of support, upskilling and mentoring to a significant number of young people working their way through the organisation in either short term training contracts, or long-term career paths.
• To provide IT support to the group of companies.
• At our two bases at Trelonk and Launceston we are a community based upon profit with good purpose, with the minimum of environmental impact.
• Leading the way in sustainable agriculture, plant-based medicines and enduring rural value.
MISSION STATEMENT:
• Our Organisation exists to be the best and to push the boundaries of science and technology, without forgetting our legacy and our humble beginnings.
• We will achieve those aims within a culture of learning, of consideration for others and promotion of moral and ethical values that lead to a better tomorrow.
• We will strive to be the best at what we do and to set a good example to everyone.
OUR CORE VALUES ARE;
• To provide high and ethical product quality.
• To provide superior customer service.
• To protect the quality of the environment through our rigid adherence to green credentials.
• To ensure equality and equal access to resources.
• To encourage innovation and creativity.
• To practice sustainable development.
• We are an Equal Opportunities employer and are creating an inclusive workplace that promotes and values diversity.
• Importantly we are creating an environment where everyone, from any background, can do their best work.
• In short, we see this as the right thing to do for the best of reasons.
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


KEY ACHIEVEMENTS
IN 2020
• Created independently managed companies with clear revenue potential
• Reduced or ceased projects which had no reasonable prospect of early revenue • Redeployed and reorganised staff to ensure the deliverables
• Continued to develop Trelonk as a science and clinical plant campus
• To have emerged from COVID stronger than we were at the beginning
WHAT SUCCESS LOOKS LIKE
• To create a listable company on the Stock Exchange
• To create independently managed and profitable companies with their own internal resources
• To ensure the independent companies are financially resourced without overreliance on the Founder
• To create access to substantial funding for science programmes
• To continue to be proud of our impact
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A REFLECTION ON THE YEAR
PARNALL GROUP
THE TEAM
Mark Parnall
CEO and Founder
Bella Percy-Hughes
Marketing
Tina Rostock
Principal Manager
Darren Cates Adam Parnall
CFO
COO
Nick Buckland OBE
Chairman
Isabelle Joce
Marketing
Eleanor Granville
Marketing
“Throughout a hugely successful and high profile international finance career, I have worked for some of the World’s leading commercial brands in the fields of cutting edge technology.
In 2020 I was incredibly fortunate to join the Parnall Group and become a key part of a fledgling intellectual and scientific powerhouse emerging from deep in rural Cornwall.
During my time working with Parnall I have seen the endless value in the production and research of plant-based medicines. Allowing people to experience the well-being of plant-based medicine has now become a passion of mine.
I have no doubt that the Parnall organisation is destined to grow and make a significant and lasting impact on the already emerging, next ‘Cornish Industrial Revolution’ where Cornish skills, expertise and resources become showcased to the World.
Darren Cates, CFO, Parnall Group
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021
“


FUTURE MILESTONES
• To complete the transition of our CEO and Founder Mark Parnall, from the Group’s Legal arm, to devote all his time to the development of the Parnall Group.
• To complete the building and commissioning of our new site Laboratories.
• To install, engineer and provide a Membership based CRM (Customer Relationship Management) System which will ensure that our technology is equal to, or better than, the best available to allow the first class servicing of our customer and client base.
• To reinstate an office in London, as soon as current COVID restrictions allow, to enable us to present our activities to the capital market, customer base, and professional and financial infrastructure that such a base would facilitate on a regular basis.
• To be able to display the St Ives Spitfire in June to coincide with the G7 summit.
• Under the stewardship of our Chairman, Nick Buckland OBE, to set up a passion based organisation to represent and market the aircraft legacy of the Parnall Group.
• To initiate and develop a Public Relations and Media presence professionally commensurate with supporting and marketing the expanding Group profile and benefitting from the newest media and online technology.
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A REFLECTION ON THE YEAR
TRELONK LTD
Our aim is for Trelonk to become an epicentre for high impact plant-based medicine
in the heart of Cornwall. Throughout 2020 the team have honed their efforts on running up that mission. Developing Trelonk Ltd into a sustainable and scalable nutraceuticals business through the sale of plant derived biomedical compounds in the form of personalised, over-the-counter health products. Including digital sales via a subscription model providing tailored wellness products direct to the customer.
With vertical integration of the supply chain including novel crop cultivation, extraction, and on-site processing of plant material offering significant added value at each stage. Focused on science innovation Trelonk Ltd aims to be the market leader in plant-based medicines.
A close affiliation with Phytome Life Sciences means Trelonk Ltd has access to some of the world’s leading science to underpin its product offering. In real terms this is recognised through the research and identification of the bioactive molecules and secondly through obtaining these target molecules by Super Critical extraction (SCO2).
WHAT IS SUPER CRITICAL EXTRACTION?
It’s a new technology of separation using carbon dioxide as the solvent, ‘super critical’ is simply the solvent in a state between liquid and gas, created through temperature and pressure, in this state molecules can be absorbed, and extracted as it cools,
• Improved selectivity
• Higher extraction yields
• Better fractionation capabilities
Borago officinalis grown at Trelonk
© COPYRIGHT 2021 PARNALL GROUP. | 3 FEB 2021


KEY ACHIEVEMENTS IN 2020
• Building our Team From the crop technicians, through marketing, product and expertise at an executive level, we have built a team to deliver our objectives
• Phytome A collaborative relationship with Phytome - both enjoying the benefits of each other’s direction of travel
• Market research and competitor analysis We have identified the white space, our value proposition and market positioning
• Developing our brand We have developed an authentic brand with a scientific look and feel to capture our audience.
• Building the infrastructure Including the construction of a 4,000 square foot building, which we have called Imp, for the storage production of oils and substantial investment in equipment and machinery to support the journey
• Proving the cycle From seed to seed with the successful harvest of some unique nutraceutical crops including Borage, Camelina, Calendula, Hemp, Roses, and Sunflowers
• Natural Capital Enhancement Commencement of Countryside Stewardship Programme and integration of regenerative farming practices
• Accreditation Red Tractor assured, certified COSMOS and LEAF Marque
CROP
YIELD (KG)
ESTIMATED OIL YIELD (L)
Borage
Camelina
Calendula
Sunflower
1200 350
3800 1100
2700 160
9000 2100
PLANT-BASED HEALTH AND WELLNESS
TRANSFORMING NATURAL PLANT-BASED SUPPLEMENTS INTO PERSONALISED SCIENCE
Hemp
24 tonnes
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A REFLECTION ON THE YEAR
THE TEAM
Nick Buckland OBE
Chairman
Mark Joce
Director
Kim Lahiri
Product Develop- ment Manager
Adam Parnall
COO
Tina Rostock
Business Manager
Darren Cates
CFO
Bella Percy-Hughes
Marketing
Mark Parnall
CEO and Founder
Isabelle Joce
Marketing
Dr Seb Vaughan
Phytome CEO
Eleanor Granville
Marketing
Rachel Wheatley
Product Development
Angus Joce
Production and Supply Chain Manager
Robert Ayres
Technical Farm Manager
INFLAMMATION IMPACTS APPROXIMATELY 720 MILLION PEOPLE ACROSS THE WESTERN WORLD.
Borage oil is a nutraceutical with extremely high Gamma Linolenic Acid (GLA) content - a fatty acid prized for reducing inflammation.
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


WHAT SUCCESS LOOKS LIKE
• Revenue neutral by June 2021.
• An active Trelonk website and e-commerce platform delivering products direct to the customer.
• A growing subscription audience benefiting from personalised plant medicine.
• A super critical CO2 extraction rig operated by Phytome Life Science Ltd at Trelonk, giving a flow of pure bio-active plant extracts into Trelonk products.
• Commissioning of Argus, the new specially designed manufacturing and distribution facility at Trelonk, for which planning permission has been granted at the entrance to Trelonk.
• Further investment into farm machinery and equipment fleet required for independence and full autonomy in cultivating specialist crops from Evening Primrose to Lavender.
• The successful cultivation and harvest of a broad range of niche crops and herbs at Trelonk, ensuring a dose of authenticity into every Trelonk product.
• Offering training and experience to the young farmer of the future.
FUTURE MILESTONES
Q1 2021 Q2 2021 Q2 2021 Q3 2021
2022
2022 2023
Launching our total extract and select extract oils product range .
Go live on Trelonk Ltd website and e-commerce platform.
Good Manufacturing Practice (GMP) accreditation for oil production.
Launch of Trelonk Ltd subscription service for infused oils targeted for your health.
Launch of the Elixir product as a result of Trelonk’s collaboration with Phytome on Project Phytogen, a programme specifically designed to harness the power of cannabis derived active pharmaceutical compounds.
Commission of Controlled Environment Agriculture (CEA) units for the
year round, rapid production of specialist crops yielding bio-active ingredients.
Scale up through the launch of the local farming co-operative, leading the Roseland peninsula as the centre of nutraceutical crop production.
A REPORT ON 2020 | 15


AWARDED UK GOVERNMENT LICENCE TO CULTIVATE AND RESEARCH MEDICAL CANNABIS
POSITIONED TO LEAD EUROPEAN PLANT MEDICINE INNOVATION AND INVESTMENT
Opportunity
Disease-targeted formulations backed by data will be a defining criterion for industry, medical approval and patients.
Growth
With growing knowledge and acceptance of medical benefits of cannabinoids, medical markets are set to deliver multi-billion dollar growth over the next 5 years.
Scalable
With over 500 active phytochemicals and 50 known indications believed to benefit from cannabis medication alone, we will leverage the same R&D platform to launch multiple technologies & pre-clinical R&D programs.
Velocity
While the body of evidence for plant- based therapeutics continues to grow, pre-clinical R&D is key to maintaining velocity of upward trajectory.
BUSINESS MODEL
Exclusive industry and investment partnerships to bring new technology, services and medical products to market
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


KEY ACHIEVEMENTS IN 2020
• UK government green light to undertake genomic, cultivation, extraction and in vitro efficacy studies on controlled medicinal plants
• Cutting edge contract research facility designed in partnership with leading industry and scientific experts
• Strategic partnerships with industry leaders to drive commercialisation
• Experienced and proven team with extensive business networks assembled
WHAT SUCCESS
LOOKS LIKE
A GATEWAY TO MEDICAL CANNABIS VENTURE LIFE SCIENCES
• TRANSFORMING cannabis flower from a highly variable agricultural crop to an industrially scalable GMP pharmaceutical production system
• EPICENTRE for early-stage life science investors seeking exposure to cannabinoid market opportunity
CGI Phytome Laboratories at Trelonk
SPEARHEADING THE EVOLUTION OF PLANT-BASED MEDICINES
“
This is highly restricted work requiring significant security and licences to operate. The application of seamless technology and data-driven pharmaceutical crop control will open up markets that
have not yet been explored.
Dr Ruth Bastow, Innovation Director
Crop Health & Protection, an Innovate UK organisation
A REPORT ON 2020 | 17
“


CORE TEAM
David Richards CBE
Director
Dr Mary Ellis MBA
CSO
Mark Parnall
Director
Adam Parnall
COO
Dr Sebastian Vaughan
CEO
Nicola Collard
Business Manager
Darren Cates MBA
CFO
ADVISORY BOARD
Controlled Agriculture
Prof Michael Fuller
Professor of Plant Physiology University of Plymouth
Public Health
Prof Michael Depledge OBE
Professor Environmental & Human Health University of Exeter
Drug Discovery
Prof Saoirse O’Sullivan
Cannabinoid Researcher & Founder Cannpharma Consulting
Extraction & Evaluation
Prof Ray Marriot
Professor of extraction technology & Former CEO of Botanix Ltd
Drug Policy
Dr Steve Hajioff
Quality Standards Advisory Committee NICE
Clinical Medicine
Dr Matthew Brown
Consultant in pain medicine and anaesthetics at The Royal Marsden
Plant Genetics
Prof Nick Smirnoff
Professor of Plant Biochemistry University of Exeter
Cannabis Biotech
Dr Henry Fisher
Chief Scientific Officer Hanway Associates
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


INDUSTRY INTEGRATED INNOVATION PIPELINE
Portfolio of R&D programs developing future revenue streams from technology, process, medicinal products and proprietary research services
SUMMARY
Spearheading the evolution of plant-based medicine from the UK
AN EPICENTRE FOR PLANT MEDICINE IN THE UK
• Expertise, infrastructure and regulatory approval to undertake controlled and nutraceutical plant medicine development
PROVEN RISK-REDUCED INNOVATION MODEL
• Reduced cost and agile risk-reduction model proven in pharmaceutical contract research organisations
HIGHLY-INVESTED ENGAGEMENT MODEL
• Means clients and investors are partners and remain for the long-term
EARLY REVENUES WITH UNLIMITED OPPORTUNITY
• Reduced commercial risk from R&D fees combined with equity ownership in innovation R&D programs
EXPERIENCED AT HIGH-TECH INNOVATION
• Having built integrated innovation businesses to high scale and multi-million revenues
INDUSTRY-INVESTOR ECOSYSTEM
• Primed for industry partners and investors to match-fund innovation at reduced cost and risk in a rapidly expanding global market
A REPORT ON 2020 | 19


“The Parnall Group, with its feet firmly planted in environmental, social and fiscal responsibility, are evolving; addressing the contemporary concerns of consumers by putting at the heart of our Group the values and principles that reflect the 21st century challenges we face today.”
SUSTAINABILITY
The Parnall Group are evolving. The industrial revolution of the 18th century was to manufacturers what the digital revolution is to consumers in
the 21st; an empowerment the result of which changes the economic landscape indefinitely.
The relationship between businesses and
their customers, far from a simple trust-based transaction, is today being redefined in the image of social, corporate and environmental responsibility.
Consumers are inexorably more engaged with businesses, prioritising everything from source materials to how they treat their staff. Honesty, transparency and a social and environmental conscious are the new currencies in business and those failing to adjust accordingly are left publicly exposed to disparagement by a generation at ease with its newly acquired digitised influence. The concept of sustainability is often depicted
as the intersect between social, economic and environmental interests and initiatives, the ‘Three Pillars of Sustainability’.
Despite engaging with each of these sentiments, the rhetoric doesn’t quite fit. One of The Parnall Group’s main strengths lies within its agility, its ability to listen to the concerns of its customers and place them at the heart of what we do.
The analogy of ‘three pillars of sustainability’ therefore, leaves little room for manoeuvre. Far better, we think, to use the pillars as a foundation, as a set of conjoining principles that reoccur
as a theme throughout each of our projects, giving rise to a space where innovation drives progression, and empowerment manifests as authenticity. We generate profit we can be
proud of; we actively and continuously strive to minimise our environmental footprint, and we treat colleagues and customers alike with respect, empathy and goodwill.
More than superficial proclamations, we are genuine in our aspiration for a decarbonised environment and to conducting business in a more humane, socially responsible manner. For some, the drivers of 21st century consumers have changed, irrevocably painting over logic and lucidity and replacing it instead with a landscape of sentiment and experience. Where once there was only reason, now it shares that platform
with emotion. Where once there was trust, now stands a forensic ability to uncover information previously inaccessible. It is against this backdrop that we, as a Group, must lead the way.
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


TRELONK ENVIRONMENT
As land managers and agricultural producers, Trelonk Farm takes responsibility for protecting and enhancing the natural and working environment in which we operate.
Trelonk is a wildlife-friendly farm committed to protecting the natural habitats and food sources
of the birds and pollinators living here. As part of the Countryside Stewardship Scheme, valuable
land that could have been cropped has been used instead for environmental management. Flower-rich margins on arable fields provides habitats all around the farm, allowing insects and pollinators a place to exists, feed, breed and travel. It also breaks up the farmed landscape so that not one single habitat is dominant, creating a mosaic of habitats for a variety of farmland wildlife. We aim to protect the locale’s natural character and control, where possible, the spread of invasive species.
We have introduced 20 bee hives to Trelonk, which is a fantastic way to turn forage into a saleable product (honey). Bees are also excellent pollinators which is likely to improve yields.
We are driving diversification of the rural economy through our own crop selection and processing - reducing the number of cultivations required to bring our crops to harvest (for example, direct drilling as opposed to ploughing). Cropping is considered with a ‘Climate-Smart’ approach, making sure that there is a robust defence against drought.
We are also working on:
• Enhanced hedgerow management
• Tree planting
• Freshwater management (ponds)
• Moving to regenerative farming techniques
• Diversification from nutrient greedy crops towards low-input oil seed crops
• Wildlife surveying and data collection
• Contour ploughing
• Increasing soil organic matter
Over the next five years we project a shift towards regenerative, organic agriculture, achieved by incrementally replacing conventional techniques with regenerative practices. There is scope to receive state funding for organic conversion and we are researching the benefits and requirements of such a move, beginning the process in 2022.
We are Red Tractor assured, have Leaf Marque certification and have a pending application for Cosmos Natural.
Borage at Trelonk
We minimise the risk of pollution to air, soil and water through the employment of adequately trained and safety-conscious operators/ contractors; our environmental policy will be given and highlighted to all operators working
at Trelonk. We also minimise greenhouse gas emissions by employing the use of fossil-fuelled machinery only when strictly necessary and all other options have been explored and dismissed. We consider environmental impact when purchasing new energy efficient equipment or machinery and minimising journeys.
We minimise the amount of waste products produced through daily business-related activities using recyclable, recycled or re-used materials. We also aim to create and maintain a healthy working environment through the provision of adequate training for staff.
A REPORT ON 2020 | 21


A REFLECTION ON THE YEAR
PARNALLS SOLICITORS
WHAT WE DO:
• Property
• Personal Injury
• Civil Litigation
• Probate
• Social Media, Internet and Media Law
MISSION STATEMENT:
• Private Client Specialists
• 40 strong staff based in Launceston • 300-year-old Firm
• Co-Founders of Folk2Folk Limited
To be independent, professional and a safe haven of legal advice.
“Our strength here at Parnalls is that we care. We care about each other. We care about the county. We care about our clients, and the results we achieve for them. And caring means we will always go that extra mile, and that makes the service we provide priceless.
Katherine Flashman Kitson
Litigation Director
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021
“


KEY ACHIEVEMENTS IN 2020
• Increased revenue by 20% in spite of COVID
• Maintained a full manned working office throughout the whole of COVID and endured awkward working practices whilst maintaining full services
• Absorbed and weathered a remarkable property explosion of work
WHAT SUCCESS LOOKS LIKE
• To grow fees year on year
• To grow the Client base year on year
• To successfully manage succession instructions from the next generation
• To be prepared to work remotely and as efficiently as we work in Launceston if COVID demands
• To maintain the long-term relationships with our staff
BUSINESS MODEL
The Business Model continues to be the long-term relationships with Clients and to provide a full range of legal services to ensure that as much of their legal needs are serviced locally by experienced and competent professionals as steady, secure yet progressive firm. Based on independence, fee-based income and long term relationships.
A REPORT ON 2020 | 23


A REFLECTION ON THE YEAR
PARNALLS SOLICITORS
BOARD OF DIRECTORS
Deborah Adams
Private Client, Director
Deborah is a Director and Head of the Private Client Department and has been with the Firm since 1989. She deals with Probate Administration, Wills and Financial Administration for elderly clients.
Jonathan Parnall
Private Client, Director
Jonathan is a key member of our Private Client Department. He has over thirty years’ experience
in property and private client work, and a wealth of first hand knowledge of agricultural matters from personal experience.
Mark Parnall
Private Client, Director
Mark Parnall is a Director of Parnalls Solicitors and has been with the Firm since 1976. Mark was born and raised in Cornwall
and was trained by his grandfather, Roger Parnall, in the Firm.
Marie Quirk
Finance Director
Marie is the key operational backbone of Parnalls Solicitors and has navigated the extreme pressures of working conditions during Covid to add depth and experience since her joining PSL 18 years ago.
Katherine Flashman Kitson
Litigation, Director
Katherine was born and raised in Cornwall, is an Oxford graduate, and is
a highly skilled litigator, advocate and problem solver. She is a fearless protector of her clients’ interests and is fully committed to their causes.
Laura Baglow
Media Litigation, Director
A specialist media litigator with over 17 years of experience, Laura advises on all aspects of social media, internet and media law including defamation, privacy, breach of confidence, reputation management, and more.
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


This month we are celebrating 25 years of Katherine Flashman Kitson being a Director at Parnalls Solicitors. As we continue to endure tough times, it is fantastic to be able to celebrate such a special event and take a glance back at her achievements.
Katherine joined Parnalls as a Director in January 1996 and although that sounds a long time ago, it also only feels like yesterday.
The firm, and indeed the world, has changed in that 25 year period. At that time, Katherine joined John, Jonathan and Mark Parnall and was then a Parnall herself. We are sure that she felt excited and privileged to join our wonderful firm with such a long and illustrious history and heritage and over 200 years of providing top class legal services to clients and within which Katherine has become such a integral part.
Katherine comments: “I have learnt so much in my time here and continue to learn every day. I am assisted by a great team of people, all of whom help to make the firm what it is and enable us to deliver the services to clients that we do. I thank all the staff here at Parnalls, past and present, for making my working life a great one.
I am so grateful to the clients that I have acted for personally and that we as a firm have acted for. It is a privilege being part of their journey and in some cases acting over generations and witnessing families develop and thrive. In many cases I have been part of a client’s journey from the first meeting when the initial issues are discussed over what can be a long and difficult time until conclusion, but it is a privilege and a pleasure to tread that path alongside clients in their business and personal affairs.
The last year has been difficult for everyone and I think has redefined the view of work which many
of us have. We often talk about whether people work to live or live to work but I do not think it
is as simple as that. We all need to earn a living, that’s for sure, and we are lucky to be able to
do so in such a beautiful place as Cornwall and Devon, but last year showed me that work is so much more than earning a living. It is a privilege, it is a constant, it is a strength and to be able to continue to do the work I know and love through difficult times was a great solace. I have realised that this work runs through my veins stronger than I knew, it has become part of me and defines who I am as well as what I do”.
We look forward to many more happy years
of Katherine continuing to share in the firm’s development, working alongside our great team and acting for clients, always striving to achieve the very best results we can for them.
FUTURE MILESTONES
• Updating of our core software
• To make NetRights the most successful defamation and social media support company in the UK
• To refurbish the offices in Launceston to maintain our Client and staff appeal
A REPORT ON 2020 | 25


A REFLECTION ON THE YEAR
PARNALL AIRCRAFT
WHAT WE DO:
• We have become the home of Presentation Spitfires - those Spitfires named after towns, cities and wealthy families who raised the money for the purchase of these planes in the darkest days of the Second World War.
• Constructing BL709 known as the
St Ives Presentation Spitfire and
the creation of a work of art to accompany its journey in Cornwall in events and other exhibitions.
MISSION STATEMENT:
• Experience is Everything
• That even as we push the boundaries of science, we never forget our legacy.
• That we extol the proud history of the Parnall Group and its association with totemic military aircraft, and bring that legacy into the current day and to a new audience of young and old admirers.
• That we continue to reach out to the young and offer worthwhile career opportunities based upon historic achievements but appropriate to the current high tech economic environment.
• To be a niche and unique supplier
of historic replica aircraft and proud custodians of the ‘Spitfire Experience’.
• To create memorabilia celebrating
St Ives’ huge contribution to the War effort.
• To continue to train Apprentices and Interns in the art and skills of 1940’s technology to complete the build of the First World War wooden Parnall Panther Bi-Plane to build up an inventory of Spitfire parts for onward sales.
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


KEY ACHIEVEMENTS IN 2020
• Reaching the key milestone where the historical narrative and background to the St Ives Spitfire meets the current momentum behind the construction project.
• That the workforce engaged on building the aircraft are working successfully to a project specification and timeline.
• To have produced and adhered to a pattern of working that avoids the interference of the COVID restrictions.
• That we have a Business Plan and Strategy in place to meet our targets of producing authentic presentation Spitfires linked to our legacy as one of the original builders of these aircraft.
BUSINESS MODEL
The business model will generate profit from the sale or lease of individual Spitfires based upon the construction sale or lease of two models per year, and in the first year deploying the ‘St Ives Spitfire’ as a travelling exhibit.
Parnall Aircraft Company would assert the public relations and marketing of the Presentation Spitfires to their originating organisations, but also to assist the organisations themselves in the process of researching the history that led to its construction, as well as its operational activities thereafter. Information gathered on its pilots, squadrons and other associations will begin to weave an engaging storyboard for the plane.
To represent the unique ties between the plane, its benefactors and its engineers, the reconstructed aircraft will be accompanied by a piece of sculptured art engineering, showcasing the cutting edge of contemporary design. To this end the Parnall Aircraft Company will commission jointly a professional sculptor of the buyers choice to design a reproducible piece in metal that reflects our ethos and ambitions.
The Spitfire would be commissioned as a package, with options to purchase outright or to lease the model for a one- or two-year period. A range of supporting products would also be included, such as beautiful 1:10 scale models in aluminium and other supporting high-end merchandise.
A REPORT ON 2020 | 27


A REFLECTION ON THE YEAR
PARNALL AIRCRAFT
THE TEAM
Mark Parnall
CEO and Founder
Tim Fane
Chief Engineer
Bella Percy-Hughes
Marketing
Murphy Ransley Miles
Aviation
Nick Buckland OBE
Chairman
Eleanor Granville
Marketing
Mia Parnall
Research Editor
David Oakley
Aviation Supervisor
Isabelle Joce
Marketing
Darren Cates
CFO
Lawrence Bysouth
Aviation
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


WHAT SUCCESS LOOKS LIKE
• To have successfully gained income for the first build of a Presentation Spitfire and thereby start to generate a cash return to set against the project costs.
• To have rolled out a celebratory launch of the St Ives Spitfire in June at the G7 and have established a permanent exhibition there to take on the mantle of a tourist attraction within the town, and promoting the link to the original St Ives Spitfire.
• That we are able to gain funding for this project, via ‘The Spitfire Passion Club debenture scheme.(separate from the Club members).
• To have established a successful Spitfire Passion Club centred around numerous like minded individuals who share the same passion and nostalgic enthusiasm for this iconic aircraft and its history in aviation folklore.
• To have established an ‘art and design engineering brand’ merchandise which is marketed around our historic links to Spitfire production.
• To establish a website based upon promotion of the Spitfire brand and merchandising mementos, clothing, models and general memorabilia associated with the brand.
• That we are able to steadily expand the workforce and offer significant and meaningful training and career opportunities to young people, apprentices, interns etc.
FUTURE MILESTONES
• Launching the website March 2021
• Public Relations and Media rollout February 2021
• Pack and despatch centre created
• Possibility to have to relocate into alternative premises at Trelonk so that the wings, Parnall Panther and Spitfires are under one roof
• To become revenue independent of the Founder
• To create a production facility of authentic spitfire parts made by one of the original makers of Spitfires
A REPORT ON 2020 | 29


A REFLECTION ON THE YEAR
PARNALL FOUNDATION
FOUNDATION
WHAT WE DO:
• Offer meaningful experiences and opportunities through our Internships and Apprenticeships
• Our 13-week workplace life skills training programme covers topics such as values, self- awareness and personal brand; communication styles; time management skills; money essentials; career planning; CV building and interview skills. We do this using a blended learning approach and harness on real life opportunities
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


KEY ACHIEVEMENTS IN 2020
NUMBER OF FOUNDATION MEMBERS:
• 2 x NVQ3 Aviation Engineer Apprentices
• 1 x Business Administration and Marketing Internship • 1 x Business Administration Internship
• 1 x Research and Editorial Internship
• 1 x IT Internship
• 3 x Trainee Solicitors
• 2 x Business Administration Internship
WHAT SUCCESS LOOKS LIKE
• Our Foundation members become part of our team, working alongside talented employees who provide continuous leadership and mentoring
• We work with our members in every aspect of their development, providing personal mentoring by our expert Parnall Foundation Team
Through partnership with other members, we are creating a social learning community in which we can all learn from and continue our aim to offer unique opportunities and career inspiration right here in Cornwall.
The pie chart shows how Foundation members are distributed across Parnall Group:
Parnalls Solicitors Ltd Parnall Aircraft Company Trelonk
Parnall Group
100%
Completion Rate
A REPORT ON 2020 | 31


CREATING LONG-TERM SUSTAINABILITY
INTRODUCTION
same values. We strongly believe that managing risk and taking opportunities as they arise is a derivative of our values as a responsible guardian of our assets and resources.
SOCIAL
We recognise our obligations as a responsible employer, and treat all our staff, consultants, associates and friends equally and with respect and dignity.
We strive to be our best in an environment which embraces personal achievement , diversity, inclusion and wellbeing.
We are committed to managing our use of resources and proactively managing the environment in a sustainable way and controlling our environmental impact.Working with the local community as a good neighbour and respecting the area in which we are lucky enough to live and work.
GOVERNANCE
Our Principles;
1. Establish a strategy and business model which promote long-term value for shareholders.
2. Seek to understand and meet shareholder needs and expectations.
3. Take into account wider stakeholder and social responsibilities and their implications for long- term success.
4. Embed effective risk management, considering both opportunities and threats, throughout the organisation.
5.Maintain the board as a well-functioning, balanced team led by the chair.
5. Ensure that between them the directors have the necessary up-to-date experience, skills and
capabilities.
The primary responsibility of the Chair is to lead the Board effectively and this includes overseeing the adoption, delivery and communication of the Company’s corporate governance model. The Chair ensures that the Board as a whole plays a full and constructive part in the development and determination of the Company’s strategy and overall commercial objectives. The Board ensures that the Group adopts policies and procedures that the Directors consider appropriate with regard to the Group’s size and activities.
The Board is committed to ensuring that a strong governance framework operates throughout
the Group, recognising that good corporate governance is a vital component to support management in their delivery of the Company’s strategic objectives, and to operate a sustainable business for the benefit of all stakeholders. The Board recognises that the process of identifying, developing and maintaining high standards of corporate governance suitable for the Company
is ongoing and dynamic to reflect changes in the Company and its business, the composition of the Board and developments in corporate governance.
Our strong commitment to ESG values means that we exercise strong stewardship and are a guardian of all the assets and resources we have at our disposal.
Therefore, ESG factors are fully integrated into our decision making processes. We believe that this holistic approach to assessing risk and opportunity enhances our offering to all our Stakeholders.
ENVIRONMENTAL
We value and protect the environment within which we operate and champion sustainability and integrity in all our operations and processes. We adhere to a strong code of ethics and will only do business with those who share the
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


6. Evaluate board performance based on clear and relevant objectives, seeking continuous
improvement.
7. Promote a corporate culture that is based on ethical values and behaviours.
8. Maintain governance structures and processes that are fit for purpose and support good decision-making by the board.
9. Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders.
ENGAGEMENT WITH SHAREHOLDERS
The Board seeks to engage with shareholders to maintain a mutual understanding of objectives between them and the Company and manage their expectations. Relations with shareholders and potential investors are managed principally by the Executive Directors.
STAKEHOLDERS AND SOCIAL RESPONSIBILITIES
The Group’s business model relies heavily on developing and maintaining strong relationships with internal staff, candidates / workers, clients and regulatory authorities. The Board is conscious of its responsibility towards all stakeholders and believes this
is an important consideration for the long- term growth of the business. Stakeholder engagement and feedback is taken
seriously throughout the Group. Regular communication is made around the Group companies and internal staff. The Group places considerable value on the involvement of its internal staff and keeps them informed on matters affecting them as employees
and on the various factors affecting the performance of the Group.
Photo credit:
Aaron Claxton Trelonk Ranger
Photo credit:
Mark Parnall
CEO and Founder
ANNUAL REPORT 2020 | 33


“In the darkest of times, when even
vaccines are appearing to give only limited protection, we will continue to strain every sinue and amplify all our endeavours to keep our bright torch light shining on the work we do in the community and in the world of molecular plant science.”
Mark Parnall, CEO and Founder
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


RISK MANAGEMENT
Risk management remains the responsibility of
the Board. Risk management is reviewed at every Board meeting as part of the formal Board process.
PROMOTION OF CORPORATE CULTURE
The Company actively promotes integrity in its dealings with internal employees, candidates
/ workers, shareholders, clients and suppliers and the authorities of the countries in which
our operating subsidiaries operate. The Board recognises that the reputations of our Group companies are valuable assets and must be protected. The Group has Codes of Conduct, including those for dealing with gifts, hospitality, corruption, fraud and inside information.
All staff must comply with the laws and regulations of any countries in which they
may operate and those responsible for the management of each operating subsidiary confirm their compliance to the Board annually. The Group’s whistleblowing policy is publicised to internal employees and the Company’s senior management visit each operating subsidiary
on a regular basis, giving internal employees
an opportunity to ask questions of and provide feedback directly to the Board.
Our operating subsidiaries are required to ensure that advertising and public communications avoid untruths or overstatements. They are also expected to build relationships with suppliers based on mutual trust and endeavour to pay suppliers on time and in accordance with agreed terms of business.
INDEPENDENCE
In accordance with the Companies Act 2006 and the Company’s Articles of Association, each of the Directors has a duty to avoid a situation where they have, or might have, a direct or indirect interest that conflicts, or potentially may conflict, with the Company’s interests. The Company has established procedures for the disclosure by Directors of any such conflicts for the Board to consider and, if appropriate, authorise. If such a conflict exists, the relevant Director is excused from consideration
of the relevant matter. All additional external responsibilities taken on by Directors during the year are considered by the Board for any actual or potential conflicts that may arise.
A
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KEY FINANCIALS
£’000s
2019
2020
2021(projected)
Group Annual Turnover
as adjusted for Group Consolidation
£2,410
£2,286
£4,315
Group Profit and Loss
-£312
-£1,610
-£70
Inward Investment - Group
£176
£1,186
£1,500
Inward Investment - Phytome
£16
£528
£7,500
Phytome Life Sciences Value
£6,000
£10,000
£30,000
Buildings Capital Investment
£0
£139
£3,500
Home Office Licence Values
£1
£5,000
£10,000
Neutraceutical Crop Yields
10.5 T
17.2 T
-
Parnall Solicitors Growth in Fees
-18.7%
-5.3%
2.4%
NetRights Fees
-
£50
£200
Estimated Research & Developement Claim due from HMRC
£100
£120
£140
Staff COVID Cases Confirmed
n/a
1
0
Grants Applied For - Phytome
-
-
£2,000
January 2021 has been a wash out in the South West with rain and flooding still causing much disruption to the region. The current weather is not helping us prepare the fields to start this season’s cropping. However new equipment arrives next week to get beds ready for new essential oils crops, so we’re hoping the sky looks like this soon.
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


COVID 2020
The management has strived hard to minimise the impact of COVID and take advantage of Cornwall’s unique position in having been more lightly touched with regard to cases, than impacted as heavily as everyone else in other ways. Given that the Company relies upon many employees outside of the area, frequent meeting trips to London and a Project in London concerning the St Ives Spitfire, its impact was always going to be high.
Date Parnall Group entered into Lockdown policy 27/03 Date country first entered into National Lockdown 23/03 Highest percentage of staff furloughed at any one time 31%
Current number of staff furloughed
Total number of COVID cases amongst staff
Total number of colds, bugs and suspected COVID attacks giving everyone a scare
Total number of people working at home at peak Number of extra laptops and PCs purchased Number of staff made redundant
COVID IMPACT ASSESSMENT
1 1
21 20 15 3
Parnalls Solicitors +4
Parnall Aviation -6
Trelonk Farm 0
Phytome Life Sciences +6
NetRights +4
Parnall Foundation 0
Number of management hours wasted too many to mention
A REPORT ON 2020 | 37


A YEAR IN REFLECTION
Cold pressed seed store takes shape
Annual presentation 2019
Learning to wear a mask
Gisele receiving farewell at the end of internship
Imp now
Stocking up!
Trial crop
Socially distanced farm walk
Borage seed
© COPYRIGHT 2021 PARNALL GROUP | 3 FEB 2021


Christmas 2019
Acki - deceased June 2020
Self-sufficiency
Rosie
Murphy graduates
Puff the Pomeranian aged 3 months
Trelonk cherries
Trelonk at its best
Trelonk brand development
BL688 original crash wreckage
November 2020
Our new Nightingale offices
Outdoor socially distanced meetings
Hemp
Preparing for the worst
A REPORT ON 2020 | 39


EVERYTHING IS EXPERIENCE
www.parnall.net [email protected] +44 (0)1872 630060
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