The trustees present their annual report and financial statements for the year ended 29 February 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the company's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The objective for which the company is established is to preserve for the benefit of Scotland at large, whatever of the Scottish historical, architectural and constructional heritage may exist in the form of buildings of particular beauty or historical, architectural or constructional interest, or ancient monuments and to promote and further the study of the said historical, architectural and constructional heritage and to make the information obtained available to the general public.
Project Management
As from 31" March 2023 Michael Davis became Projects Manager for both Heritage Building Preservation Trust (HBPT) and Primo Properties Limited while Robert McCallum retired from being Projects Manager and took up the post of Hon Secretary of HBPT and continued as Director of Primo Properties. He would stay involved with the Trust's businesses and run in parallel with Mike Davis to assist/advise as long as required.
Unfortunately, due to other work commitments, Mike Davis tendered his resignation in May 2023.
This of course meant a reorganisation of the Trust's posts to allow the business to continue seamlessly and the restoration to proceed as before.
6 & 8 Reform St. Beith
It was agreed to sell the 2 flats owned by Primo Properties Limited to raise funds to enable the completion of the restoration project at 21 Schoolwell St Stevenston. Home Report valuations were £48,000 and £53,000 = £101,000.
An offer of £100,000 came from a buy-to-let landlord, cash buy, no mortgage or chain and no estate agent fees. We asked for an increase but he said no. Subsequently his offer was accepted. The sales were concluded for No. 6 on 29" June and No. 8 on 10" July 2023.
The proceeds for both sales were paid directly to HBPT's bank account. Cashflow being low on funds and 4 contractors on site there would be a cash:flow shortfall until the sales funds for the 2 flats were received. To bridge this period Robert McCallum and William Nevill each agreed to lend HBPT £12,000 for a few weeks. This was done (21" and 23" June 2023) and repaid from HBPT's a/c to both parties on 4" July 2023.
21 Schoolwell St. Stevenston
This project has been subjected to many trials and tribulations e.g. vandalism, lack of contractors, shortages of materials and soaring inflation. However overcoming the general construction problems was nothing compared with much stress when dealing with Scottish Power, trying to get a meter fitted and therefore power. From July to November, we logged 52 calls - a minority lasting a few minutes but most up to 50 minutes, being passed from department to department. It was eventually fitted in November. When nearing completion, we engaged an estate agent who recommended we restore the garage, fence off and landscape the garden - while running low on finances we reluctantly accepted that we should do this. Robert McCallum agreed to loan a further £5,000 to HBPT until the property was sold.
Since the year end, the property was sold for £155,000 on15th April 2024. The Home report valuation was £145,000.
Beith Community Development Trust
The Trust continues to liaise with Beith Community Development Trust at Geilsland Estate. As their contribution to the Stevenston project they supplied staff to assist on site on many occasions. This was very welcome and gratefully received. We felt it was beneficial to both parties as it introduced their staff to an environment of restoration and community benefit.
The surplus for the year is £1,097 (2023: deficit of £15,306).
The principal source of income was the interest charged to the trading subsidiary, Primo Properties Ltd. The charity continues to look for new income streams to support the ongoing charitable projects, and will continue to monitor the financial position closely.
Reserves policy
The closing reserves at the year end were £175,438 (2023: £174,341). It is the policy of the company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Going concern
The charity intends to wind up within the next twelve months and will distribute the remaining funds to charities with similar objectives.
Risk Management
The trustees have assessed the major risks to which the company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity intends to wind up and cease in the next twelve months and will distribute the remaining funds to charities with similar objectives.
The company is a company limited by guarantee and not having a share capital, and its objects and regulations are detailed in its Memorandum and Articles of Association.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Method of appointment or election of trustees
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Related party relationships
In 2009, the Trust set up a wholly owned subsidiary, Primo Properties Limited. This generates rental income from its properties with any surplus, after meeting expenses and interest on its loan from the Trust, being covenanted to it.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the company for the year ended 29 February 2024, which are set out on pages 5 to 12.
The company’s trustees, who are also the directors of Heritage Building Preservation Trust for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Heritage Building Preservation Trust is a private company limited by guarantee incorporated in Scotland. The registered office is French Duncan LLP trading as AAB, 133 Finnieston Street, Glasgow, G3 8HB.
The financial statements have been prepared in accordance with the company's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The company is a Public Benefit Entity as defined by FRS 102.
The company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The charity is in the process of winding down and looking to cease to trade in the next twelve months.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Investment income, rental income and similar income
Income from investments and from rental income and similar sources is included in the Statement of Financial Activities in the year in which it is receivable.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs are those costs incurred directly in support of expenditure on the objects of the Charity. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Other General Grants
Investment income
Unrestricted Funds
Unrestricted Funds
Project management fees
Sundry expenses
Insurance
Computing costs
Rates
Release of debtor provision
Independent examiner's fee
None of the trustees (or any persons connected with them) received any remuneration, benefits or expenses from the company during the year.
The average monthly number of employees during the year was:
The amount due from Primo Properties Limited has been fully provided for based on an assessment of the recoverable amount.
The company has accrued annual interest of £4,458 (2023 - £5,410) on a loan for the period from its subsidiary, Primo Properties Ltd.
Primo Properties paid for expenses totalling £0 (2023 - £3,196) on behalf of the company. The trust paid for expenses totalling £0 (2023 - £3,626) on behalf of Primo Properties. HBPT received income of £97,677 on behalf of Primo Properties Ltd.
Also during the year, the Trustees Mr McCallum and Mr Neville provided loans to the charities of £12,000 each which are both repaid back in full during the year.
Related party balances
At 28 February 2024 the balance due to Primo Properties was £89,390 (2023 due from Primo - £203,609 ). A provision of £89,390 (2023 - £105,770) has been made against the amount owing to Primo Properties based on an assessment of the recoverable amount.
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
Details of the company's subsidiaries at 29 February 2024 are as follows: